What we’re actually seeing on the ground right now.

Hi,

If you follow real estate headlines lately, most of them are focused on what isn’t happening.

Condo project after condo project not starting.
Pre-construction buyers walking away from deposits.
Developers suing purchasers and in some cases, the other way around.

That noise is exactly why it’s worth talking about what’s actually happening on the ground.

Why we’ve always focused on purpose-built rentals

What you’re seeing in the condo market reinforces a decision we made years ago.

We’ve always focused on purpose-built rental projects because the fundamentals are clearer before we ever start:

• Rental demand can be validated up front

• Income assumptions are more certain

• Projects aren’t dependent on future buyer behavior or sentiment

When markets tighten, that certainty matters. It’s also why rental projects behave very differently than speculative condo developments in environments like this.

The environment is tighter, but it’s not static

There’s no question that development today requires more precision.

What we’re seeing:

• Rents have softened or declined in some areas

• Construction costs remain elevated

• Financing is more conservative

At the same time, there are meaningful offsets:

• Regulations have relaxed in many municipalities

• Approvals are moving faster, partly due to experience and partly due to reduced red tape

• Land prices are down, creating better entry points

• There are simply more options on the table than there were 12–18 months ago

So while margins are tighter, the environment is more workable for teams that know how to navigate it.

Fewer deals... and that’s intentional

We continue to focus on small-scale projects, for a few key reasons:

• Staying within Part 9 of the Building Code keeps construction simpler and more predictable

• Designs are being simplified without sacrificing quality or durability

• We’re underwriting conservatively, assuming today’s rents — not yesterday’s peaks

• With land pricing down, we’re able to be firmer on conditions and structure

The result is fewer deals moving forward, but stronger ones when they do.

Why this matters for investors

From a capital perspective, we’re very much in capitalization mode.

The focus right now is on:

• Bringing in strategic capital

• Stabilizing projects through the current cycle

• Positioning assets to ride out the downturn and perform long term

Real estate is a long game. Periods like this tend to reward teams that stay disciplined, keep executing, and manage capital thoughtfully.

We’re continuing to pursue new opportunities but only when the numbers make sense, while also finding ways to build faster and more efficiently.

A note on current opportunities

We do have both lending and equity opportunities available at the moment.

If you’re interested in learning more, or simply want to understand how we’re thinking about structuring capital right now, feel free to reply to this email.

No pressure, just a conversation.

Thanks for reading,
Darren