Le Germain Residences
A Message from CitySearch Calgary…
Le Germain residences have had no sales from January through to September 2020; there have however been several listings that have been either expired or been terminated. An overview of these are:
17th Floor – 1 bedroom Suite – 1026 ft2 – asking $629,500 – Listing Expired
19th Floor – 2 bedroom Suite – 1657 ft2 – asking $1,200,000 and relisted at $995,000 – both Listings Expired
16th Floor – 1 bedroom Suite – 1051 ft2 – asking $710,000 – Listing Terminated
17th Floor – 2 bedroom Suite – 2154 ft2 – asking $1,649,900 – Listing Terminated
The probability of a sale given these numbers appears to put the cards in a buyer's hands, and they will very likely be brutal with offers as they have few sales for comparative purposes, and competition with other condominium complexes in the nearby communities. The condominium market is projected to decline by a further 3 to 5% over the next 12 months according to the chief economist at the Real Estate Board, primarily due to low demand, overall high inventory levels in most price categories and new project inventory which has not yet been listed by the developers.
Hence, renting is a serious option for many property owners and developers as they either do not want to absorb a large financial loss and even when they are willing to take that loss they find that competition than further lowers the price.
Le Germain Residences is an upscale condominium complex with 40 units of which 50% are owner occupied and the balance rented. The condominium corporation is managed by Condocorp which is owned and operated by Germain Hotels and is considered separate from the hotel side. The residences are connected to the hotel and some of the amenities can be used by the residents of the condominium including the gym (when open), the spa and visitor parking. There are convenience options such as valet and the ability to charge room service and the drinks from the lobby bar to your account. There is a concierge five days per week.
The residences (circa 2010) are larger units with mostly stone flooring, floor to ceiling windows, most units with large open-air decks, and open floor plans. They were originally equipped with premium Miele appliances. The top four has four two story units.
Citysearch manages many units at Le Germain and has been extremely active in this complex since the start and have entered into more than one hundred tenancy months; the rental rates generally range between $2.0 to 3.2 per square foot, where the tenant is typically responsible for utilities, cable services and housekeeping. Some units are available furnished with most being unfurnished. Inclusions can vary rental rates, as well as the term, and when the tenancy commenced. The minimum lease terms, pursuant to the bylaws, is one year. The bylaws permit two pets, however there is a restriction on size, and permit having either cats or dogs, and of course the property owner has the final say to approve occupancy of any pets.
The lead time to rent depends on the time of year….. we are entering the slower months, so a rental at this juncture will typically take 2-3 weeks however once November arrives and especially the period of November through to January, that will extend to as long as 4+ weeks to find a suitable qualified renter. CitySearch has an uncanny ability to find great renters faster than the competition at any time of year. There is no spreadsheet for determining return on investment; the bottom-line rents typically do not cover the cost of ownership, meaning if you bought a condominium for $775K the mortgage on the full amount would be about $3875 per month. Once you add in condo fees and property taxes of about $1000 a month, maintenance costs as time passes, and the management fees, this would bring the "cost" to more than $5000 a month simply to break even. This is why investors are not currently active in our marketplace as the returns are simply not there. However, renting mitigates most of the expenses…. Which is a tremendous thing.
There is always a risk for someone not paying rent, however Citysearch goes through a very stringent process and eliminates the vast majority of these offenders - there is obviously no way to predict if someone will lose their job and for situations like marital strife, however our track record, background checks and screening process attracts quality tenants versus placing ‘anyone’ in the property.
If you would like to receive regular updates on this condominium complex, Le Germain Residences, please reach out to lisa@citysearchcalgary.com.
