A Saskatoon-based developer is planning to start work on a what is expected to be the largest residential development in the city’s history next month.
Baydo Development Corp. vice president of finance said the twin 25-storey towers will provide a $100-million economic “shot in the arm” for the province.
Citing a higher threshold for mortgages and a shift toward high-density living, Chris Luczka said the company is banking on increased demand for high-end rentals.
“People are wanting to rent because it’s more affordable than home ownership at this time. You can get a nicer place for less money,” Luczka said Tuesday.
The proposed 426-unit megaproject on the corner of Fifth Avenue and 25th Street is larger than the twin 23-storey towers containing 364 units Baydo originally envisioned for the site.
Luczka said “huge, huge interest” in the company’s 10-storey apartment tower on Broadway Avenue led to the size increase of the project, which will cost “roughly” $100 million.
Baydo plans to build both towers simultaneously, but finish the interior of one about a year ahead of the second. Completion of the second tower will be based on absorption rate, he said.
According to Baydo, the building will contain units ranging from 501-square-foot one-bedroom apartments to two-bedroom units of 1,102 square feet.
Some of the apartments will include more than 500 square feet of private outdoor living space, while the building will also have a large rooftop patio as well as 11,000 square feet of commercial space.
One tenant it will not have is a grocery store, often cited as a roadblock for downtown living. But Luczka said the pandemic has shown grocery delivery to be more than feasible.
The developer bought the vacant lot from the City of Saskatoon for $4 million in 2018. The property is already zoned for apartments, meaning Baydo can avoid a potentially-contentious public consultation and rezoning process.
While the pandemic has created much economic uncertainty, Luczka acknowledged that borrowing is very cheap and after the virus is under control, “people (will) still need a place to live.”
“It’s been proven that as cities grow, the percentage of renters versus homeowners starts to shift, and I don’t see Saskatoon stopping growing,” he said.
Construction is expected to finish in late 2022.
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