It is no secret that we are in a housing crisis in Ontario. Despite a very active and motivated industry, we can’t get new homes built fast enough to meet our growing population and changing demographics, for a variety of compounding reasons. In addition to impacting housing supply and affordability, delays also have significant financial impacts for the developers.
A recent municipal benchmarking study by BILD GTA, demonstrated that the average approval timeline across 16 GTA municipalities is 21.6 months, and each month of delay adds $2,673 to $5,576 in added cost per unit.
Another factor contributing to rising capital costs, is construction and labour challenges. Our industry largely still relies on traditional, labour intensive, methods of construction. When it comes to construction financing specifically, if construction times can be shorter – interest costs for a developer can be lowered.
Fortunately, we are starting to see some shortening of approval timelines in certain municipalities with more simplified processes. In addition, there are emerging development and construction companies who are trying to innovate in this challenging market to break the status quo. One of those stand-out companies is Livwell Development (Livwell). We helped them secure their construction financing for their first two mid-rise apartment projects in Niagara Falls.
Finding creative solutions in a challenging development landscape
Livwell Development, founded by Adam Peaker and Dave Gerrard, together have more than 15 years of development and construction experience in Burlington, Hamilton and Niagara region. They are both very entrepreneurial and so was their vision.
With eyes set on secondary market sites that would be ideal for mid-rise purpose-built rentals they wanted to build their projects using a new modular precast construction system called Fast Track by Stubbe’s. Livwell was also the first developer to partner with Stubbe’s on this new competitive construction system.
I first met with Livwell during the early stages of their project planning to discuss their purpose-built rental strategy and potential construction financing using CMHC’s MLI Select program. Impressed by their newly formed group and the rental housing concept they wanted to bring to the market we helped them secure their construction financing at this stage. They had all the right ingredients for a successful project. The right partners and track record and an innovative construction strategy.
While precast floors and walls are commonly used for the construction of many residential buildings, Stubbe’s FastTrack modules contain standardized precast pieces that include floors, ceiling, walls, and exterior building envelope including windows and patio doors all in one enclosed piece. While the interior finishes are still built out as they would be on a traditional construction project, Stubbe’s modular building system significantly reduces construction time by integrating design, manufacturing, and installation processes off-site. It also helps reduce construction costs by minimizing on-site labour. In addition to speed, from a design standpoint, the high-end, modern look and feel of the building’s mid-rise building architecture is not compromised.
Ahead of the market and ahead of schedule
Less than one year from breaking ground, Livwell’s five-storey, 50-unit rental building was completed, six months ahead of the anticipated completion schedule. Catering towards the growing demand of downsizers in the area, the apartment was also 50% leased by its first occupancy date in February 2025. Livwell has also broken ground on another 123-unit purpose-built apartment building in the Niagara Region using the same Stubbe’s FastTrack system.
Where can we go from here?
As municipalities in the GTHA become more willing to allow for gentle mid-rise density in residential neighborhoods, innovations in construction such as precast modular systems like Stubbe’s FastTrack, could be just the key we need to unlock faster and cost-effective housing opportunities across our region.
Borrower Testimonial:
“First National was wonderful to work with. They understood what we were doing, believed in our vision, got behind us and helped us get there. As a newly formed company, this kind of support was invaluable to our business.” - Dave Gerrard, Founding Partner, Livwell Development.
About the Originator:
Daniel Bragagnolo has been a part of the First National Financial commercial team almost ten years, and has worked on a team that has originated more than $5 billion in commercial financing.
For Daniel, it is critical to put clients in the best position for growth. Doing so takes dedication, hard work and sometimes, tough problem solving behind the scenes.
In Daniel’s view, challenges create opportunities within deals, and those opportunities often become precedents in structure and financing. Committed to being a precedent setter, Daniel leverages programs like CMHC’s Energy Efficiency initiative to give his clients the best advantages possible. He is also one of First National’s foremost specialists in Affordable Housing, helping owners manage the complexities with smart financing solutions.
Working at First National, Daniel feels that he can use his CMHC knowledge, commitment to collaboration and persistence in relationship management to get deals done right. You can reach Daniel at daniel.bragagnolo@firstnational.ca.
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The construction of Livwell’s mid-rise apartment building in Niagara was completed ahead of schedule using Fast Track by Stubbe’s, an innovative modular construction system. The modular precast concrete pieces, windows and patio doors, are manufactured in Stubbe’s facility off site and then transported to the building site to be installed.