Join us in Toronto on November 26, 2024 for our next Rentsync Roadshow stop. Tickets are selling fast, get yours today!
Join us in Toronto on November 26, 2024 for our next Rentsync Roadshow stop. Tickets are selling fast, get yours today!
Beyond Four Walls: The Promise of Mixed-Use Developments
In our rapidly evolving world, prospecting tenants expect more than just a place to live or work. They seek vibrant, all-encompassing communities that offer convenience, choice, and a sense of belonging. On this episode of Sync or Swim, we are joined by Dimitri Kritikos, Director of Property Management at Rhapsody, who offers us a unique perspective on the promise of mixed-use developments and how they satisfy the needs of today’s discerning residents. Listening in, you’ll gain insight into Toronto’s exciting new master-planned community, The Well, which is one of the most ambitious mixed-used projects of its kind in Canada. You’ll also learn about the benefits of the geothermal well the development takes its name from, the various amenities that residents will be able to take advantage of, and how The Well not only offers an incredible place to live but is even changing the stigma of renting. For a sneak peek into the future of purpose-built rentals, tune in today!
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Rhapsody Property Management Services
“It's something that is newer. I think that the emergence of purpose-built rentals is definitely starting to become a little bit more popular here in the GTA. But it is popular because it's been so well received by people. Again, I think the days are behind us of people just like renting a box in the sky and just calling it home. They truly are looking for the lifestyle component and they want to know their neighbours. They want to feel like they're bought into the community. And again, they want to have everything at their fingertips. " - Dimitri Kritikos
[INTRODUCTION]
[0:00:34] ANNOUNCER: Welcome to another episode of Sync or Swim, brought to you by Rentsync. From operational challenges to marketing mastery, we uncover the strategies and technologies in all things PropTech. Let's dive in as we explore the trends, tactics, and insights that define the future of multifamily investments. Sync or Swim starts now.
[EPISODE]
[0:00:56] GL: Hey, everyone, and welcome to another episode of Sync or Swim, the podcast where we navigate the currents of the rental housing industry. I'm your host, Giacomo Ladas. My guest today is Dimitri Kritikos, Director of Property Management at Rhapsody. Dimitri, thanks so much for joining me today. Really happy to talk to you.
[0:01:11] DK: Absolutely. I'm super excited to be here. Thanks for having me.
[0:01:14] GL: Yes, of course. Well, the reason why I want to have you on the show today was because you offer a really unique perspective on mixed-use developments, as we saw with the introduction of FourFifty The Well. But maybe before we get into that discussion, maybe start elaborating a little bit on yourself, and what your role dictates as a director of property management.
[0:01:33] DK: Yes. Definitely. I am the director of property management here for Rhapsody in the GTA. With my role, it kind of oversees multiple portfolio communities here in Toronto. I'm responsible for kind of growing our team, making sure that the sites are successful, and overall, just really making sure that our clients, and ownership are extremely happy for their partnership here with Rhapsody.
[0:02:02] GL: Yes. So it's pretty busy.
[0:02:04] DK: Yes. Yes. Definitely a busy time.
[0:02:07] GL: Okay. Let me for those who are unfamiliar with it, what are a mixed-use development building. Maybe start from the ground up, because I'm sure we have listeners who probably never even heard that term before.
[0:02:17] DK: Sure. A mixed-use development is going to be definitely, I think, A, the way of the future, but B, a super exciting development. Because in a mixed-use development, it's going to encompass a lot of key components, which is going to be residential spaces, typically office space, retail space, then there'll be some type of components of maybe a park or promenades that are going to be incorporated into the mixed-use development.
Then, another component is going to be when the developers are looking for the land space for mixed-use development, they’re going to typically look for something that's going to be accessible to transportation. So whether it be highways, if it's a car-dependent mixed-use development in the suburbs, or like here at The Well, we're in downtown urban markets, so they really wanted to make sure that they were accessible to public transportation. Because, as you know, Toronto, there's a lot of traffic here, so not everybody has a car. Being able to be close to the Spadina streetcar, the King streetcar, as well as the GO trains downtown at Union Station.
These are some of the things that the developers are looking for when they're going into a mixed-use development. For this specific project, you're going to see that we offer a purpose-built rental, which we have three towers that are property managed by Rhapsody. You're going to have three condo towers, as well as the office space over at 8 Spadina. Then, on top of that, you're going to have the three levels of retail that's going to offer a myriad of different things, which is going to be health and lifestyle. So whether it's a doctor's office, a dentist's office, or Sweat and Tonic's new flagship location.
Then, you're going to have eateries such as the anticipated Wellington market that's going to be opening soon. You're going to have restaurants such as Era and Lulu Bar. Then, you're also going to have retail spaces like the flagship Adidas store, a Franken Oak, Coffee Shops, everything. It's something that's going to be a live, work, eat, play space. That is usually how I describe a mixed-use development to people, and kind of layman's terms is that, it's an all-encompassing place.
[0:04:40] GL: Hmm. Sounds like you kind of see these types of buildings really as the future of purpose-built rentals, maybe even so much as prospecting tenants. They're looking for more when they come to looking for an apartment, I guess. I guess that's why you kind of see as the future.
[0:04:54] DK: Yes. Definitely. I think that the kind of norm of having your apartment, or condo, or home really just being the place where you go home to sleep is not really as popular anymore. I think that there has been a shift. I think that people are truly looking for experiences and they want things as instant gratification. With a mixed-use development, you're going to have everything at your fingertips. In reference to The Well, let's say you rent a suite with us at FourFifty The Well. So you're going to be going there, and of course, as your home.
Then, maybe you have your job and you're working at 8 Spadina. How convenient is that to be able to walk home for your lunch break and maybe you walk your dog during that timeframe, so you don't have to hire a dog walker? Then, if you're going to happy hour with your friends or coworkers at the rooftop bar at Era, all of this is within kind of like your little bubble. On the weekends, maybe you're going to brunch after taking a spin class at Sweat and Tonic. So, not only is it going to be your home, but everything is right there at your fingertips. It really is all-encompassing. I think that it is turning into an amenity as well.
Of course, the purpose-built rentals, and our communities are going to offer things such as fitness centres, and parcel lockers that have cold and dry storage, and 24-hour concierge, and things of that nature. But you're also going to have accessibility to some of the most unique retail spaces, office spaces right there within steps from your front door. I think, that is part of the reason why this is becoming such a popular trend, is that it bleeds into the entire kind of campus, as opposed to just being that building that you live in.
[0:06:58] GL: Yeah, it sounds like that comes with a lot more like expectations from the prospecting tenant, though, right? It seems like, yes, this is the future of personal rentals. But then, maybe the industry itself has to – maybe not change, but adapt more towards like, hey, these people are now going to start expecting this. They're going to expect more than just a place to sleep, which I'm sure adds a lot more challenges, and everything on your side, the marketing side of things, how you show the suites.
Let's back up a little bit because I want you to elaborate a little bit more on The Well. I had a privilege to see it, and I could do it a little bit, but not as good as you. What is The Well? I know it's a mixed-use building, but I'd love to hear your perspective on it.
[0:07:37] DK: Definitely. The Well is a huge, huge, huge campus that's going to be located off of Spadina Avenue, and right in between Front Street and Wellington Street. It is just under eight acres. That is just a massive space. It's going to encompass six residential towers. Three of them being condos, and then three of them being the purpose-built rentals that Rhapsody manages. In addition to that, you're going to have 320,000 square feet of retail space. Again, this is going to be encompassing the Wellington market, the restaurants, the Adidas store, Arcadia Earth, Indigo shopper. So you're going to have everything right there at your fingertips. Then, lastly, you're going to have the office tower, which is located at 8 Spadina. That offers 1.2 million square feet of premium office space.
Truly, when I say it is a live, work, eat, play space, it's going to offer everything. Then, it's located, of course, right in a fabulous part of the city. King West is vibrant, it's fun, and it's electrifying. But you can also access almost every neighbourhood from there, which is fabulous. Then, there's also going to be parks and promenades. On Wellington, the buildings are tucked back a little bit more so that there really is a promenade space there. You're going to have the open-air canopy space, that's going to be three levels. That's going to kind of protect you from the elements because we are here in Canada, in Toronto.
As we know, you can get rain, snow, sunshine all in the same day. You can really use this any time of the year. Then, there's going to be tons of parks nearby too. Whether it's right on Portland, it's right on Spadina and Wellington, there's going to be a park on each side of us. As well as, you can go just south of the community too, and then you're going to have access to the lakefront. It really, really is going to have so many offerings at The Well, and you truly kind of never have to leave the space.
[0:09:52] GL: Right. Where did the name come from? That's an interesting name.
[0:09:54] DK: Yeah. Underneath the campus, we actually have a geothermal well. This is what's going to provide heating, cooling, and energy to not only the campus. But we've partnered with N-Wave on that, and they are able to store energy there, and then supply it out to kind of the grid map of the King West and downtown core. This is a super exciting thing. It ties into sustainability, which is a huge thing for not only our clients but for Rhapsody. I think for all Canadians, I mean, we need to be thinking about that, and how we can increase sustainability. Because our carbon footprint, we're looking towards a net zero here, for Rhapsody and our clients.
So, partnering and creating these huge developments that tie into a geothermal type of energy system really is the wave of the future. It is a benefit for the residents, because, of course, their utility bills are going to be lower than what you might see at a traditional community. That's definitely a huge benefit for them. But as far as our clients go, they were able to achieve LEED Platinum status for the community. The campus itself is going to have that, which is extremely exciting, and it's definitely a difficult thing to achieve. But because of the way that they have incorporated The Well into the campus, that was one of the ways that they were able to get that across the finish line.
[0:11:28] GL: It's just like a little added bonus there. It's something that's maybe not, yeah, it sounds cool. We have a geothermal well, but I didn't realize that there's actually monetary benefits as well with it. So that's really interesting.
[0:11:40] DK: Definitely. Definitely. It's something that I think is becoming more and more of a bonus to the renters. Of course, they like seeing that their utility bills are a little bit lower. But as younger generations enter into the rental market, that is something that they're passionate about. I think that, with millennials and Gen Z, they truly are looking at climate change, and they're looking at ways of increasing sustainability. For us, our agents at the communities, and maintenance teams, everybody is able to speak to this initiative. It's something that we're able to discuss with them, and it is something that is important to them. We have been able to capitalize on that, and we've seen an uptick in our leasing, and touring because of it.
[0:12:32] GL: I believe it. There's so much about the community itself, but I think we could maybe focus a little bit on maybe to some of the most important thing is the suites themselves. Maybe talk a little bit about the suites at a mixed-use building like this. I've had the ability to see a few, but from studio to, perhaps, penthouses, kind of – what do you actually get with the suites and what kind of went behind the design, and the architecture of those?
[0:12:56] DK: Definitely. The suites are fantastic. We do have multiple different offerings. As Rhapsody, like I said, we probably manage two of the communities here. There's going to be the Residence at The Well, which is located at 425 and 435 Wellington. Then, we also manage FourFifty The Well, which is at 450 Front Street. They're going to be two different product mixes, so Residence at The Well, you're going to have larger square footages, and they're going to range from one bedroom to three bedrooms, as well as having a penthouse collection. Full-service community.
Their average square footage over there is going to be 900 square feet, which for the GTA in a purpose-built rental is extremely large. They have huge cascading terraces that are kind of located on Wellington Avenue that give you that outdoor space as well. Wine fridges in every apartment, they're going to have 9 to 11-foot ceilings, and it is really a robust community. They're going to have peloton bikes on their rooftop fitness centre, again, 24-hour concierge, cold and dry storage, massage rooms that can be activated through our resident portal if you don't have your own masseuse. So you're able to book that out and have an RMT come in, and it really brings all those services into you.
Then, you're going to have FourFity The Well, which is 592 luxury suites in a 46-storey tower. This is one of the ones that you were able to come in and view with us. It is vibrant, it's fun, it's eclectic. At that community, it's going to offer studios to three bedrooms. Then, we have our much-anticipated penthouse collection there as well. We're really going to be able to hit a diverse audience here between both communities. Because the offerings, they're just there. So if you are looking for a large space, but you want that boutique community, maybe you're going to be going towards Residence at The Well. If you're looking for expansive views, and you want to have the lake views and watch the sunsets, and everything, FourFifty The Well 50 is truly, probably going to be the ideal space for you.
We see that in the demographics that are coming into the communities as well. Luckily, we're able to kind of cater and capitalize on a broader range of them. But I think that, not only is it just the suites that are selling, because of course, they are quartz countertops, hard surface flooring throughout, high ceilings, floor-to-ceiling windows, low-efficiency appliances. All of those things are really, really great. But what I've always said is that there's a difference between a tall building and running a luxury high rise.
At Rhapsody, and at FourFifty The Well, we truly run a luxury high rise, because you're going to see the difference when you walk in. You’re going to be greeted by a concierge, there's going to be a leasing and management office right off of the entrance that is going to be fully staffed seven days a week. So you're going to be meeting with a trained leasing agent that knows the building inside and out. You're going to have white glove services offered to you, such as our maintenance team is willing to hang TVs for you, hang artwork, shelving, all of that stuff. So that it can take the ease off moving. Moving is one of the most stressful things that we do in our lives.
[0:16:22] GL: It's the worst thing. No one enjoys it, but we have to do it.
[0:16:27] DK: Absolutely. Our teams are there to assist in that process. Whether it is hanging your TV for you, or your leasing consultant meeting you for a movement orientation, and showing you around the entire community, and throughout your suite. That is something that the residents appreciate. I know when I moved into my space, I kind of went on a little adventure and looked for the gym, and the pool, and everything of that nature. Having a dedicated professional that is going to make time, know your name, and show you around. That is a huge win and a benefit.
Again, just the amenity packages that we offer. You're going to have coworking spaces, we even have soundproof phone booths that you can take calls from in our coworking space. They have a pizza oven on their outdoor dock, as well as six gas grills, a pet run. Then, of course, we cannot even go without saying the 46th-floor fitness centre and yoga room has some of the best views in the city. It's one of the highest rooftop gyms in the entire city.
[0:17:34] GL: It's high, yes. It's really high. I've had to [inaudible 0:17:38] and it is high.
[0:17:41] DK: Yes, but it's extremely robust, and like I said, we have pelotons in there, we have weightlifting equipment, we have free weights, we have cardio machines. Then, not only do the views sell you, but it makes you want to go up there and actually work out. Because we are a professionally managed community, there's always going to be tailored events too. So we have personal trainers that come in and teach classes twice a week, whether it be yoga, Pilates, or HIIT classes.
I think that that's definitely something different than what people are accustomed to in the GTA. We really do try and program the spaces, and do a great job curating a sense of community. I will say, I think that our team members at The Well are some of the absolute best in the industry. They do a fantastic job with curating events, like we had a huge holiday party in the 8 Spadina event space. They did a Valentine's Day event, of course, we’re doing summer functions on the rooftop. All of that really helps tie into that sense of community. We want people to get to know their neighbours, we want them to feel at home. If you're running late at work, you can text your friend and say, "Hey, can you maybe take my dog out for me?" That's something that is really impactful for us. It's just making sure that we always are creating that sense of community for our residents.
[0:19:09] GL: No, that's great. I think kind of the reason why I want to have you on specifically, and to talk about The Well is, I think it's maybe more of a thing in North America. But there seems to be, for lack of better term, a stigma for renting. It's like, "Oh, you can’t do homeownership. Oh, you're renting." But when you kind of hear what these buildings are now, how they're not just a suite where you sleep, but it's a full community with commercial and residential spaces mixed together. Like you said, they'll help you move, they'll have classes at the gym.
I think what this is actually doing by having higher expectations, but also offering a lot more as it's maybe changing the stigma about what renting is, and there's no way around it. The costs of rents are going up in this country. But what you now are getting out of these rentals, it actually might be the way for people to live. It's actually offering them a much higher quality of life. I think it's the first step to really changing how people think of renting. Obviously, I don't think that at all, and there's a lot of places around the world where people just rent the rest of their lives. But you get that sense here that's, "Oh, you're renting? You don't buy a house?" Well, no, I don't want to because at The Well, why would I buy a house? Right?
I think, this building, actually, and the whole idea of upping your game and upping your service is actually kind of ending or working to end the stigma of what renting is. I think what you guys are doing are great.
[0:20:28] DK: Yes. Absolutely. I think that, we are seeing a shift in that stigma, because when we are renting to our prospects, these are people who can go out and buy homes or they are people who are actually selling their homes and choosing to come and rent with us. So, they love the fact that this is kind of a turnkey place. If the appliances go out, we're going to be the ones that replaced them. They don't have to worry about those unexpected costs. With immigration in Canada, and the GTA, really kind of having an influx right now. We are capturing a lot of that market, because when you move to a new country, you don't maybe know exactly what neighbourhood or area you want to live in. So, it's a great way to test that out too. Because you're putting down permanent roots, of course, if you purchase, and maybe you've never been here been able to explore it too much. So, this is a great way to test it out.
What we're seeing is that our residents and our prospects truly love the experience that they're getting, that our retention rates are around 70%, so people are loving living there. They're not getting those experiences in their condo places. It's almost like an easy way of ownership. But one of the other additional things too, is that, with renting with us, they're guaranteed the space, if you're renting a condo or something, the condo owner could say, "Hey, I need to move back in here, because I need to downsize because of costs going up or something." Then, the person could get kicked out abruptly. We would never do that to somebody. We always offer renewals to people, and they're able to extend their tenancy, and truly call this their home.
It's our goal to create that sense of community where they want to stay. What we're seeing is that people are receiving that. It's definitely showing off in our retention rates, our reputation management. I think it's certainly breaking the stigma of what ownership versus renting is.
[0:22:40] GL: No, absolutely. Kind of the touch point on something you mentioned there. I'm just curious like the persona of someone who would typically go for a building like The Well. Are you saying, actually quite a lot of it are international, like newcomers? Are they students? What typically are your tenants made up of? Because, you think, like such a luxury building like this, they're all older people who may have sold their home – But that's not the actual case. It's actually kind of a mix of people who are maybe looking for a mixed-use development building.
[0:23:05] DK: Definitely. We cater to all demographics. It's nice that we're able to do that between the two communities. Then, also, between the sweep designs that we've created. At The Well, at the purpose-built rentals that Rhapsody manages, were actually offering studios from 372 square feet to penthouse collections that are about 1,600 square feet. With that, you're definitely going to cater to a large audience. But we are seeing that we have young professionals, we have students who are coming in and getting a two or three-bedroom and creating roommate situations. As well as, people working downtown who just are a couple, and maybe this is their first time living together and they get a one-bedroom, or a one-den.
But then, additionally, something that kind of like, we were a little bit even caught off guard with is that, we're having a ton of people who are selling their homes. It's definitely been a great market for that. Then, they're coming and they're living with us. Truly, their feedback is always so positive. They were like, "This is not what I expected rental living to be like." You are programming the spaces, we have everything at our fingertips, and they always looked at it as like, "If I moved to the city, I need to buy a condo. There's fees, there could be a special assessment," things of that nature. But we're offering that to them with a no ease, like peace of mind kind of living.
[0:24:39] GL: I didn't know this was rental living. That's such a thing right now, people don't know that. Actually, there are so many more benefits. Some of you don't even know that some of these personal rentals, they have a pool, or a gym. So that's really interesting, you mentioned that. People don't even know.
[0:24:54] DK: Yes. It's something that it is newer. I think that the emergence of purpose-built rentals is definitely starting to become a little bit more popular here in the GTA. But it is popular because it's been so well received by people. Again, I think the days are behind us of people just renting a box in the sky and just calling it home. They truly are looking for the lifestyle component, and they want to know their neighbours, they want to feel like they're bought into the community. Again, they want to have everything at their fingertips. I think what's nice with The Well, and quite frankly, all of our purpose-built rentals that Rhapsody manages here in Canada, and especially in the GTA, is that it offers that again, peace of mind living. It is something that is accessible to multiple different demographics.
You don't have to worry about, when things break, taking a month or two to have that issue resolved. We're on-site where they're we're closing out work orders, typically on the same day, or within 48 hours, pretty much maximum. When I say, peace of mind living, that's what we're offering to our residents. Then, on top of that, they're getting the benefits of these brand-new gorgeous communities. That if they were potentially to go out there, and purchase a place, they wouldn't be getting the additional extra space, and all of the amenities, and quartz countertops, brand new finishes, and all of the cutting-edge things. I think that's part of the reason why it's been so well received.
[0:26:33] GL: Yes. It's interesting too, because it seems like there's always this balance we're trying to strike between not just a rental suite, but a lifestyle that you're selling as well. I'd imagine marketing something like that comes with a lot of uniqueness. Coming from someone who was in marketing, a lot of people who are, "They're just having like a room in the sky," but that's completely almost secondary from what The Well is doing. Coming to marketing this building like this, you're actually trying not just even to promote the rental suite. Maybe you want to promote the lifestyle more is, is that kind of what the mindset behind this is? Things are going more towards a lifestyle.
[0:27:10] DK: Yes. I feel like that's definitely the direction that has been moving towards. I think that you can see that in our marketing campaigns. I mean, you can't open social media right now and not see an influencer not at The Well, whether it is our purpose-built rentals, the condos, or just going and having a day out at either Era for drinks, or going to Sweat and Tonic because they're doing a spin class. Even the videos that like we're using for marketing purposes, they don't just showcase somebody inside the suites, or inside the amenities. It's showcasing them actually living their day-to-day life, inside the mixed-use development, but also inside the neighbourhood. If you go on our website, and actually look at the like teaser videos that we have, you're going to see people walking around King West. You're going to see them on the TTC maybe going to work.
We really kind of want to capture the lifestyle component, but also the accessibility to the neighborhood to everything that you need. Again, it really is tying into that live, work, play, eat, everything at your fingertips.
[0:28:26] GL: Maybe just to kind of wrap things up. If somebody wants to kind of discover The Well, where do they go? It sounds like you guys are on social media, but how do people kind of see what those amazing places like before they may make that first phone call?
[0:28:38] DK: Yeah, absolutely. We're always open seven days a week, so they can either pop into one of the addresses, and meet with one of our leasing agents at 425 and 435 Wellington, as well as 450 Front Street. They can check us out at Rhapsody Living, and our website will have all the links on there. Or they can check out our websites, FourFifty The Well or Residence at The Well too.
[0:29:03] GL: We're going to link all that in the show notes here. Thanks so much, Dimitri. I really appreciate this. I think, by setting these higher expectations, we're actually doing a lot more than just offering an incredible way to live. But we're also changing the stigma of what people look as for renting. I think the work you guys are doing is really terrific. I've had the privilege of seeing the building, and I can assure you that, as well as the job as you've done explaining it, it doesn't do it justice. You do have to see it to really understand just how incredible it is.
Again, Dimitri, thanks so much for coming on today. It was great to talk to you, and I can't wait to see kind of how this evolves, and how this actually may be a kind of big moment in purpose-built rentals, and what comes from it. Again, thanks so much for your time, and we really appreciate talking to you today.
[0:29:47] DK: Thank you so much. I really appreciate you having me.
[0:29:50] GL: Thanks everyone for listening. Make sure to rate, review, and subscribe to the podcast wherever you listen. Until next time.
[END OF INTERVIEW]
[0:29:56] ANNOUNCER: Thank you for tuning in to another episode of Sync or Swim, brought to you by Rentsync. If you enjoyed today's show, make sure to visit www.rentsync.com/podcast for detailed show notes, key takeaways, and more. Thanks for listening. Brought to you by Rentsync.
[END]
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