New NHL headquarters set for Hudson Yards

The National Hockey League (NHL) will be moving its headquarters to Brookfield Property Partners’ Manhattan West project, set for seven acres in the mammoth redevelopment of the Hudson Yards district in New York. With the signing of a long-term deal for approximately 160,000 square feet, the NHL bumps One Manhattan West to almost 40 per cent leased. The 67-storey, 2.1-million-square-foot tower is scheduled for completion in 2019.

“The leadership and employees of the NHL will benefit not only from the modern features and prime location of One Manhattan West, but also the unparalleled mix of retail and dining amenities and the beautiful public plaza that will be central to Manhattan West,” says Ric Clark, Brookfield’s chairman and senior managing partner.

The tower is part of an envisioned six-building complex encompassing more than five million square feet of class A office space, a 62-storey luxury residential building due to open next year, retail space and a two-acre public plaza. The Manhattan West site is located between Penn Station, which is North America’s busiest train station, and a new 7-train station serving the city’s subway extension to Hudson Yards.

In addition to five floors of office space, the new NHL headquarters set for Hudson Yards includes plans for an NHL store, occupying up to 15,000 square feet in Manhattan West’s central retail corridor.

“The growth and momentum of our game and our business require a state-of-the-art facility,” affirms Gary Bettman, the NHL’s commissioner. “With its terrific amenities, including an NHL store, our new building will be that, and more.”

Tips for reducing radon in the workplace

The winter season brings increased levels of radon in the workplace, and is a prime time to test for and address any issues. During these colder months, buildings tend to be regularly sealed, creating lower ventilation.

According to Health Canada, radon is an odourless and tasteless gas that occurs naturally when uranium in soil and rocks begins to decay. The gas omits radioactive particles, which can be inhaled and lead to cancer. About 188,000 Canadians are expected to be exposed to radon at work every year. Health Canada says radon results in an estimated 3200 deaths per year and is responsible for 16 per cent of all lunch cancer deaths in the country.

Dr. Cheryl Peters, postdoctoral fellow at Carelton University and occupational exposures lead scientist at CAREX Canada recently offered some radon reduction insight via The Canadian Centre of Occupational Health and Safety.

She says radon can be found in anywhere, such as hospitals, schools and long-term care facilities, and levels are higher in indoor air compared to outdoor air. Workers in underground mines are at the most risk, janitors, caretakers and teachers can all be exposed because they spend a considerable amount of time indoors.

Where radon is found

Peters notes that radon gas enters buildings when air pressure indoors is lowers than the soil foundation surrounding the building. The pressure difference draws air and other gas indoors through openings and cracks in the foundation, gaps around pipes and windows and cavities inside walls.

While radon levels vary from province to province, most buildings contain some levels of concentration. So, no area is really free of radon, she notes.

“Radon levels in buildings also vary across the seasons and can change significantly even in 24 hours, by a factor of two or three,” she said. “The highest levels usually occur in winter because windows and doors are kept closed; this seals buildings and, therefore, decreases ventilation. Sealing buildings to conserve energy can result in higher levels of radon as well.”

Rooms closer to the ground and in confined spaces, such as offices in basements, could be a concern.

Reduce radon exposure risk

Measuring through radon detectors is the only ways to determine if radon is present. These are small devices placed in a workplace for a period of time and sent to a lab for analysis.

Peters suggests following Health Canada’s radon reduction guidelines. Use a long-term detector and test for a minimum three months, especially during winter. The more popular long-term device is to filter air through the device and measure particles released when radon decays

Testing is available through certified service professionals, who can be found through the Canadian Association of Radon Scientists and Technologists or the Canadian National Radon Proficiency Program.

Removing radon

For workplaces, Peters suggests using raw materials that are low in naturally occurring radioactive materials. Construct and modify buildings to prevent radon entry through the soil gas or facilitate its removal. Increase air circulation by regularly opening windows or installing mechanical ventilation and reduce the amount of time workers spend in areas where radon may be found.

Specific methods for removing radon from existing buildings include several factors, including the concentration and soil type. The most effective measure is called active sub-slab depressurization. According to Peters, this means a remediator installs a pipe through the floor slab of a foundation. This pipe is attached to a fan that runs continuously, drawing radon gas out from beneath the workplace to the outdoors where it is then diluted.

Survey finds generational differences in workplace preferences

Staples recently released its Business Advantage 2016 Workplace Index survey, which found that workers in different age groups have various levels of motivation and unique office preferences.

As Canadians have been continuing to work for longer in life, sometimes even into their 70s, employers are having to deal with accommodating and managing five generations in the workplace, which can cause some issues.

The survey was conducted online among 1,995 employees in the United States and 1,110 in Canada by Morar Consulting in March 2016. Of the employees polled, a total of 1,404 were classified as general officer workers and 1,601 business decision makers.

The five generations, which include Generation Z (under 18 years old), Millennials (18 to 33 years old), Generation X (34 to 50 years old), Baby Boomers (51 to 70 years old) and sometimes even the Greatest Generation (over 70 years old) do share some similarities in workplace preferences, but they also have differences in their needs, which employers should do their best to meet.

“It’s important for employers to remember there are several generations represented in today’s workforce,” said Scott D’Cunha, vice president of marketing, e-commerce and communications for Staples Business Advantage Canada, in a press release. “While these generations do have much in common, there are also key differences and organizations must take these differences into account to ensure a happy and productive workforce.”

Burnout is an issue that concerns three generations: Millennials, Generation X and Baby Boomers, and it is quite prevalent among those age groups. Forty-one per cent of Millennials, 39 per cent of Generation Xers and 29 per cent of Boomers say burnout is a motivator to looking for a new job. To avoid burnout, Boomers and Generation Xers wish their employers would lower their workloads and provide more time to complete tasks, while Millennials would like to have more flexible schedules.

Forty-one per cent of Boomers are motivated by having a sense of purpose at work, followed by salary, making them the most motivated age group. This is compared to 27 per cent of Generation X and 23 per cent of Millennials that agreed with that statement. Gen X and Millennials, on the other hand, say their top motivator is salary. Generation X ranked a sense of purpose second, while Millennials listed passion for the job as the second most important motivator.

Millennials value the ability to work from home, which is where they feel the most inspired to work. However, they are the only ones – Gen Xers and Boomers prefer a traditional workplace and feel the most inspired at their desk in the office.

Office design is valued across all age groups, as all generations share the desire to work in a well-designed office. Forty-nine per cent of Millennials, 48 per cent of Gen X and 37 per cent of Boomers want their employers to pay better attention to office design and layout.

All three age groups value having plenty of natural light in the office, but Boomers and Gen X prefer to work in private spaces using ergonomic furniture, whereas Millennials prefer standing desks and lounge areas to work in.

Seventy-four per cent of Millennials, 64 per cent of Gen X and 51 per cent of Boomers appreciate the availability of a wellness program when looking for a new job, including having fresh foods available. Gen X and Millennials also look for fitness tracking wearables and onsite gyms when searching for a new job.

Although 41 per cent of Boomers feel they have too much work to take a break from their desk that is on the lower end of the spectrum, as 49 per cent of Millennials and 50 per cent of Gen Xers agree. Breaks are important to over 70 per cent of each generation, as they make employees feel more productive throughout the day. Employers can encourage workers to take breaks by providing comfortable break rooms equipped with snacks and drinks to allow employees time to relax.

“It’s promising that all generations said they think working in a five generation workplace is more fun, creative, inspiring, trusting and fosters an environment of learning,” said Jacob Morgan, author of The Future of Work, Futurist and Co-founder of the Future of Work Community. “Managing five generations poses a challenge for employers, and as Gen Z continues to enter the workplace in larger numbers, it’s critical for organizations to ensure they understand their workforce’s needs.”

See an infographic on the survey results here.

U of Calgary’s green cleaning program awarded CIMS-GB certification from ISSA

The University of Calgary recently earned ISSA’s Cleaning Industry Management Standard Green Building (CIMS-GB) certification for its dedication to green cleaning and high-quality human and environmental health standards.

The university is the second post-secondary institution to receive this honour in Canada, and has also earned the maximum points needed to register for the LEED program. CIMS-GB is now included as a direct compliance option in the new version of LEED EB: O&M.

The two-year process to become a greener and safer campus, involved professionalizing caretaking operating procedures, equipment, products and training.

“This designation sets us apart, particularly as a post-secondary institution in Canada,” Steven Gasser, associate vice-president of Facilities Management said in the university’s news release. “It shows our long-standing commitment to sustainability and recognizes that we are positioned to perform to the highest green cleaning standard in the industry.”

Some key features of the institutions’s green cleaning program include the use of EcoLogo or Green Seal rated cleaning products and ergonomically designed tools for staff to reduce musculoskeletal injuries.

“We’ve partnered with industry and collaborated across campus to make sure our products and practices are aligned with the university’s operational sustainability goals,” said Samuel Whyte caretaking program manager of Facilities.

According to the university, the caretaking staff are trained as specialists in four areas, articulated through four colours: red for washrooms and locker rooms; yellow for classrooms and laboratories; blue for offices and lunchrooms; and green for public spaces like elevators and hallways.

A professional caretaker training curriculum offers development opportunities and ensures staff remain knowledgeable on the latest cleaning standards and methods, while encouraging feedback on effective and comfortable practices and tools.

“We want the university to feel confident in our service,” says Michael Love, director of caretaking of Facilities. “Our people are professionals; we are working to the highest standard to provide our staff and everyone on campus with a safe and healthy environment.”

Photo by Riley Brandt, University of Calgary

Foreign ownership low in major urban centres: CMHC

The share of foreign ownership in condominium apartments located in Canada’s major Census Metropolitan Areas (CMAs) remains low, according to a new Housing Market Insight report from Canada Mortgage and Housing Corporation (CMHC).

Out of all the major urban centres monitored by CMHC, Vancouver and Toronto had the highest rate of foreign ownership at 2.2 per cent and 2.3 per cent, respectively. These numbers are lower than 2015 levels, when there was an unusually high proportion of foreign ownership in newly constructed condominiums compared to both 2014 and 2016.

Foreign ownership continues to be higher in newer and larger buildings in the downtown regions of Toronto and Vancouver. In Toronto buildings that have been completed since 2010, foreign ownership rose to 3.9 per cent, and in buildings with over 500 units, foreign ownership increased to 5.5 per cent. Meanwhile, Vancouver’s newer buildings had a five per cent share of foreign owners, while in buildings with more than 100 units, 3.2 per cent of units were owned by foreign investors.

In a separate report focused solely on Montreal, CMHC found that foreign ownership remained relatively stable at 1.1 per cent for the entire CMA, but in the city’s downtown core and Nuns’ Island, that level climbed to 4.3 per cent. In addition, between four and eight per cent of foreign-owned condominium units in Montreal were left empty in 2015. CMHC noted that 40 per cent of foreign buyers that purchased units in 2015 did so without the use of a mortgage, and foreign-owned condominium units in central Montreal were generally valued higher than those owned by Canadians.

In the other CMAs (excluding Toronto, Vancouver and Montreal), the share of foreign condominium owners ranged from a low of 0.2 per cent in Saskatoon and Regina to a high of 1.2 per cent in Halifax.

“Foreign ownership is just one factor influencing Canada’s housing markets – but it’s an important one that continues to gain attention,” stated Bob Dugan, CMHC chief economist, in a press release. “Our studies show that the share of foreign ownership remains low and concentrated in newer, larger buildings located in the cores of major cities like Vancouver, Toronto and Montreal. We continue to work with our partners in finding new ways to bring this important story into sharper focus.”

Addressing Legionella risk in buildings

Common building systems, such as cooling towers, hot water tanks, faucet aerators, shower heads, hot tubs and decorative fountains, all produce fine water droplets that can harbour Legionella bacteria growth. Without proper management and maintenance to building systems, this bacteria can grow, releasing fine aerosols that can be inhaled deeply into the lungs, causing respiratory infections in occupants and the potentially fatal Legionnaire disease, a form of pneumonia. Some recent updates to standards offer guidance to managers to help mitigate Legionellosis and prevent facilities from potential liability.

Legionella standard updates

BOMA BEST 3.0, which recently replaced BOMA BEST Version 2, recommends managers and owners develop and implement a Legionella water management program to demonstrate intent on managing buildings. This includes ensuring the program adheres to the requirements of ASHRAE 188 Legionellosis: Risk Management for Building Water Systems and Public Works and Government Services Canada’s (PWGSC) Control of Legionella in Mechanical Systems Standard 15161. The program identifies building systems that must be considered for Legionella risk. Control measures should be developed and documented, which would include preventative measures, water sampling, protocol monitoring and corrective actions.

ASHRAE Standard 188, released in 2015 after years in development, requires that buildings evaluate where Legionella growth may occur in all water and plumbing systems. A management program should be in place to establish preventative control measures, management and monitoring of the implemented measures.

An older, but equally important standard is PWGSC’s Standard 15161. Released in mid-2013 and updated by addendum C in March 2016, this standard provides minimum requirements for design, operation, maintenance and testing to prevent Legionellosis associated with building water systems in federal facilities and Crown-owned buildings. The standard, which applies to both new and existing PWGSC-owned buildings, can be used to ensure the consistent implementation and reporting of facilities. It also provides the minimum requirements that must form part of a facility’s Legionella Bacteria Control Management Program, including checklists and forms, and risk evaluation based on the standard’s risk guidelines.

Building systems prone to Legionella risk

There seems to be a belief that Legionella growth is limited to cooling towers; however, studies have shown more prevalence in hot water storage tanks and potable water systems.

Since Legionella can grow in potable water systems at a greater rate than cooling towers, management of potable water systems to prevent growth in all buildings, particularly health care facilities, is very important. Potable water conditions of concern for Legionella growth include biofilm present in tanks, pipes, other vessels, domestic hot water storage tanks and dead legs in hot and cold water lines.

Legionella pneumophila enters buildings as a bacterium found in very low concentrations in lakes and rivers. It is not completely eliminated by chlorination or other water treatment systems. Legionella will grow in warm water (above 20 C). The ideal growth range is 35 to 45 C and the organism is killed more rapidly above 65 C.

Dead legs in potable water systems are an issue of concern as Legionella can grow rapidly. For example, all potable water systems should be removed or capped and drained during decommissioning of washrooms, cafeterias and laboratories, etc., to prevent growth and cross contamination of connected systems. Other at-risk sites include shower areas, patient washrooms and washrooms in tenant suites that are not used often. If these systems cannot be removed, a flushing regime of these systems should be performed.

Domestic hot water storage tanks are a source of Legionella growth, particularly if the heating elements (coils) do not reach the base of the tank, resulting in cool spots. Pipe connections above the base of the tank will allow for sediment accumulations. These combined conditions allow Legionella to grow in the sediment which can be released into the hot water in the event of water pressure surges such as water shutdowns. The bacteria, if present, could be aerosolized via faucet aerators or shower heads.

Ideally, water temperatures in hot water storage tanks should be maintained at 60 C to minimize Legionella growth. However, this high temperature, if provided to the delivery point, will cause severe scalding particularly to the young and elderly. Therefore, hot water should be delivered at a minimum of 49 C to 50 C to prevent severe scalding, a requirement supported by code, particularly for health care facilities and federal buildings. It is important that thermal mixing valves, either at point of delivery or close to the storage tank, be installed to prevent scaling.

Legionella preventative management

Legionella can ultimately result in serious infection or death in healthy people, but particularly immunocompromised individuals. Consequently, to help prevent Legionella growth, the complete building should be examined for potential Legionella growth sites, and a Legionella preventative and risk management program should be developed, including staff training on Legionella awareness, documented preventative procedures and vigilant surveillance, including water sampling.

A Legionella preventative management program is important, and while it’s mandatory in certain locations, such requirements are not consistent across Canada. For instance, it is a regulation in Quebec and a by-law in Hamilton, Ontario. These requirements, however, apply only to cooling towers, even though other water systems are common culprits.

It is interesting to note that in the UK, Legionella prevention and control is mandated and extremely rigid. For example, in September 2016, a UK company was fined £1.8 million (about CAD $3 million) and ordered to pay court costs for failing to properly manage its water systems to reduce the risk of Legionnaires’ disease. Specifically, poor water testing, staff training, policies and inadequate risk assessments, and failure to follow remedial requirements were factors in the ruling.

Bernard C. Siedlecki is a senior associate with Pinchin Ltd.’s Indoor Air Quality group.

Tapping into water savings

Many building owners today are familiar with electricity sub-metering and its proven energy and cost savings. However, few understand that much of the regulatory oversight that makes electricity sub-metering services easy to compare aren’t applied to water sub-metering.

The equipment used for electricity sub-metering is rigorously tested by Measurement Canada before approval and sealed by a Measurement Canada (MC) certified sealing house before installation. Water sub-meters are tested initially by the manufacturer, but third party meter sealing for water sub-meters is not required. Measurement Canada also requires that electricity sub-meters be independently inspected after installation, but this is also not required for water sub-metering systems and is left up to the sub-metering service provider.

When it comes to water sub-metering, equipment selection often involves ensuring it conforms to the American Water and Wastewater Association (AWWA) C-700 standard, which recommends tolerances and accuracy requirements for water meters. Unfortunately, despite this standard, there can still be large differences in water sub-metering equipment and the impact it can have on a building owner’s bottom line.

Comparing water sub-metering technology: a case study

At Clean Cut Energy (CCE), we believe referencing each water sub-metering service to a benchmark is a critical part of the process. The reference we use is how effectively the sub-metering equipment in a building recovers the utility costs from its residents. By tracking the utility “recovery rates” of all the buildings we service, we were able to determine that some of our ‘inherited’ water meters were recovering less water from residents than the water meters we typically choose to employ. Below are the results of our in-depth investigation.

Figure 1. (below) depicts the average difference in recovery rate observed between inherited water meters and the water meters typically used in our buildings.

Differences in accuracy

This investigation by CCE engineers found two interesting differences in the water meter technology we compared. Table 1 (below) shows the AWWA C-700 standard requirements for water meters, and compares it against the specifications for the two water meters used in the study. What’s notable is that despite both being ¾” meters, meeting the minimum low flow water consumption value specified by the standard of 0.5 USgpm (US Gallons per minute), the variation between the rated low flow measurements is more than 1500 per cent. This is the result of both differences in the technology and the low flow accuracy.

Table 2 and 3 (below) show the average capital cost difference of these two meters and what is the estimated lifetime cost of using the lower accuracy meter vs. the high accuracy meter, based on an eight per cent difference in recovery rate.

The incremental equipment purchase cost difference for a 200-unit building is $16,000. The lifetime cost of this decision is over $400,000 with a Net Present Value of $160,000 to the building owner today. This illustrates how cost-cutting decisions made by a sub-metering supplier may result in expensive lifetime utility costs for the building owner.
In a building with very little common area use and no leaks, CCE sub-metering systems are able to recover upwards of 97 per cent of the incoming water purchased by the building from building residents, which amounts to a 10-fold return on invested capital for the building owner.

The problem with pulse meters

Table 1 (top) highlights another significant difference between the two meter types. Meter #1 uses pulse output as the form of communication technology. This means that when a predetermined volume of water has passed through the meter, a pulse is produced that is picked up by an attached listening receiver. Meter #2, by comparison, uses an encoder level read that means a communication protocol asks the meter for its reading and the meter has to reply with the data which includes the entire meter reading and the meter serial number. This also means that when a reading is requested the returned value is the same value that is displayed on the top of the meter dial.

Why it matters

The simple answer is ‘fault tolerance’. With Meter #1 consider what happens when the receiver no longer receives pulses from the meter. In this case the sub-metering service provider has a question to answer. Did pulses stop arriving because no water was consumed in the unit or because the wire was broken and the pulses weren’t received? The fact that this system does not definitively disclose when it is in a fault state is a significant problem. Meter #2 however will immediately indicate when it is in an error state because communication was attempted and no reply was received. There is no ambiguity in this circumstance and a repair must be performed.

Consider also a scenario where the receiver doesn’t get all the pulses sent from Meter #1. This can create a discrepancy between what the meter dial indicates (since the pulses were sent) and the water use that appears on the customer’s bill (what the receiver picked up). The only way to discover if this error is occurring is to audit a number of meters yearly and compare the received pulse values (shown on the bill) to the meter dial reading. In the meantime the resident is likely being under billed for their usage and the owner of the building is on the hook for this undocumented water use until a suite by suite audit is performed. Meter #2, by comparison, will never have this issue since a request to the meter returns the actual meter reading. No discrepancy is therefore possible.

The faults associated with pulse meter readings give rise to what we refer to as pulse meter recovery rate erosion. This occurs when pulse meters slowly fail and the recovery rate that started high when they were first installed continually decreases relative to the total water consumed by the building. A high functioning pulse water meter system requires significant ongoing yearly building maintenance and auditing. We believe that making the decision to invest in high accuracy encoder read water meters is based on easy math.

Questions to ask when selecting a water sub-metering partner

It’s important to ask for both references and meter specifications. When talking to references, ask for samples of some of their building recovery rates. Don’t settle for samples from new buildings they just commissioned, ask for ones that are at least five years old and make sure they can show you results down the road that meet your expectations. Working with companies that select high accuracy equipment that is properly suited to your building is not only the water wise thing to do, but it is also the best way to make sure building owners get the maximum return from a sub-metering system. That is something that our engineers don’t question.

Mike Kazmaier, P.Eng is the Director of Operations at Clean Cut Energy Corp, a nationwide Tier 1 water, electricity and thermal energy sub-metering firm. To contact Mike please visit [email protected]

Real estate industry gathers for networking reception

More than 450 real estate industry professionals and suppliers gathered for the 2016 Canadian Real Estate Industry Reception on November 30, at The Antler Room, beneath the Loose Moose bar and restaurant in downtown Toronto.

The annual event, which has been operating for several years now, has become an established, must-attend evening for real estate peers to network and share ideas. This year, attendees enjoyed another fun night of food, beverages and door prizes.

The Canadian Real Estate Industry Reception selected Cam’s Kids Foundation as its chosen charity for 2016. This non-profit organization is dedicated to creating awareness and empowering youth to learn how to manage or overcome their anxiety.

Cam’s Kids Foundations was started by Gord Hicks, president and chief executive officer, Americas, Brookfield GIS, in honour of his son, Cameron Hicks (Cam) who also lived with anxiety. Cam passed away in 2014 from a fatal car accident. His legacy of love and kindness lives on through this foundation.

The industry evening raised $3620 for the charity through sponsorships and funds from a 50/50 draw.

“On behalf of Cam’s Kids Foundation, I would like to thank the industry for their generous contribution, helping us achieve our mission of ‘Supporting Youth Struggling with Anxiety,’” says Hicks.

Plans are now underway for the 2017 reception, which will be shared with the industry once confirmed. Thank you to the 2016 Canadian Real Estate Reception sponsors whose generous support made this event possible.

Photo: Chuck Nervick, senior vice-president of MediaEdge Communications, presents a $2500 check to Gord Hicks. An additional $1120 was raised through a 50/50 draw.

Perkins+Will celebrates Evergreen Line opening

Global architecture and design firm Perkins+Will celebrates the official opening of the Evergreen Line, the 11-kilometre extension to Metro Vancouver’s SkyTrain system that connects the communities of Coquitlam and Port Moody to Vancouver. Estimated to carry 70,000 people per day by 2021, this extension renders the SkyTrain system the longest fully automated and driverless rapid transit system in the world.

“We see the Metro Vancouver region as a great model for public transportation and our local work continues to inspire and inform our design projects globally,” says Jeff Doble, Perkins+Will’s director of transportation design. “Our goal is to create an exceptional experience for passengers; to increase ridership by designing pleasurable spaces that are unique, accessible, intuitive to navigate, and safe; and to thoughtfully connect the stations to other modes of transport and the surrounding community.”

This approach is evident in Evergreen’s Lincoln and Burquitlam stations, two on the seven-stop line that were designed by Perkins+Will. These stations not only fit within a family of buildings through the use of repetitive roof elements, structure, and glazing, but add to the firm’s award-winning legacy of transit design, which began nearly 20 years ago.

In 1999, Perkins+Will designed the Millennium Line’s award-winning Gilmore and Brentwood stations, which introduced the use of wood and prefabricated modular roof panels – signature elements that continue to be used across Metro Vancouver’s SkyTrain stations today. The firm further refined its modular kit-of-parts approach during the design of Canada Line stations at Aberdeen, Lansdowne and Richmond-Brighouse. Today, the design of Lincoln and Burquitlam stations on the Evergreen line represent a continued refinement of the firm’s transit work, providing a high-quality, elegant, and economic design that prioritizes the riders’ experience.

“The expansion of Metro Vancouver’s SkyTrain network not only opens up the Tri-City communities to the greater region, but unlocks the potential for future development,” says Ryan Bragg, principal at Perkins+Will who led the Lincoln and Burquitlam stations, as well as the recently opened transit-oriented development Marine Gateway.

“Each of these stations was conceived as a catalyst for future development and designed to complement the surrounding neighbourhood. We look forward to seeing the success of the Evergreen line and its contribution to Metro Vancouver’s world-class role for transit and transit-oriented design.”

Syndicate mortgage lenders exit King Charlotte development

Building and Development Mortgages Canada Inc. (BCMC) has announced that lenders in a syndicate mortgage that funded Toronto’s King Charlotte condominium, a joint project from Lamb Development Corp. and Fortress Real Developments Inc., received their principal back in full as well as an estimated total return of 48.69 per cent, including eight per cent per annum over six years.

King Charlotte is a 32-storey, 232-unit condominium apartment project located in Toronto’s King West district. The 9,646 square foot site was acquired in October 2010. The development was designed by Peter Clewes of architectsAlliance, with interiors by II by IV Design. Following a successful sales launch in 2011, construction began in fall 2012, allowing occupancy to start in late 2015. The building’s registration was granted last month.

“Brad Lamb and his team have a proven track record for developing successful condominium developments,” said Vince Petrozza, COO at Fortress, in a press release. “We are proud that Lamb and Fortress have provided a healthy return on investment to their lenders, and in turn, helped many young families achieve their goal of home ownership in Toronto’s vibrant downtown core.”

“King Charlotte is a perfect example of a well analyzed real estate opportunity which combined a strong market, an experienced developer and well purchased land,” said BDMC principal Ildina Galati. “We are pleased that syndicate mortgage lenders have benefitted from this well-executed real estate transaction.”

Ron Joyce Children’s Health Centre earns LEED Gold

Hamilton Health Sciences’ new facility, the Ron Joyce Children’s Health Centre (RJCHC), has earned Leadership in Energy and Environmental Design (LEED) Gold certification.

“The Ron Joyce Children’s Health Centre is a reflection of years of thoughtful, innovative planning by our staff and construction partners,” said Dr. Peter Fitzgerald, president of the McMaster Children’s Hospital, in a press release. “It’s this collaborative approach that allowed us to create a purpose-built facility that positively impacts our young patients and their families, while minimizing the environmental footprint on our surrounding community.”

The project was certified Gold under LEED Canada New Construction standards, earning 64 points. It features a spacious four-storey atrium, full height windows and outdoor terraces to make the best use of natural light. It was designed using 32 per cent recycled construction materials; 45 per cent locally sourced or manufactured construction materials and an energy model predicting 58 per cent less energy use due to the implementation of energy efficient technologies such as individual lighting controls for at least 90 per cent of building occupants, as well as efficient heating and cooling equipment.

Other sustainable features of the design and construction of the facility include nearby access to public transit; the installation of low-flow fixtures to reduce water consumption by 36 per cent; the diversion of 86 per cent of construction and demolition waste from the landfill; the design of the building envelope to increase thermal resistance; the space allotted for the storage and collection of recyclables; and the white roof membrane that reflects heat, rather than absorbing it, reducing cooling costs.

“As design-builder, PCL is extremely proud of the collaborative team effort that has secured LEED Gold status to provide Hamilton Health Sciences with a facility that balances energy efficiency with occupant comfort, enabling the health system to provide care for children and their families in an environment that is as healthy as possible, for years to come,” added Mike Wieninger, vice president and district manager for PCL Constructors Inc. (Toronto).

BCCA Manley McLachlan announces retirement

The British Columbia Construction Association (BCCA) have announced that Chris Atchison has been named incoming president, replacing retiring incumbent Manley McLachlan. The handover will begin on January 3, with McLachlan staying on in an advisory capacity until March 31, 2017.

Working from the BCCA headquarters in Victoria, Atchison will be responsible for continuing BCCA’s pioneering work delivering provincial programs and services to strengthen B..C’s industrial, commercial and institutional construction sector, while advocating on behalf of employers on key issues. Current programs such as the Skilled Trades Employment Program (STEP) will remain a priority, as will the development of the province’s leading procurement platform BidCentral, plus many other initiatives that define both the work of the BCCA and its importance in B.C.’s economic development.

“Over the last 14 years Manley has built BCCA into a recognized leader in Canada’s construction industry, creating a powerful legacy,” comments Bob Cooke, BCCA board chair. “Chris has the relationships, experience, skills, and commitment to take us forward, as well as a strong vision for future growth and sustainability.”

Atchison brings a wealth of experience in employment and labour market programs to this top role within BCCA, including nine years as COO at ASPECT (The Association of Service Providers for Employability and Career Training), and 17 years as the Provincial Employment Contracts manager for many successful programs. He is chairman of the Sandra Schmirler Foundation, a national charity that has raised millions – experience relevant for the role he will play in helping to guide BCCA’s charitable arm, the Construction Foundation of BC.

A focus during Atchison’s tenure will be to work with the leadership of the four regional construction associations (RCA), to ensure strong benefit to membership and productive collaborations across the province.

“I’m honoured to be stepping into this role and very conscious of the legacy that is being entrusted to me,” says Atchison. “I look forward to working closely with the BCCA and RCA Boards and staff, as well as our many stakeholders on behalf of the construction employers and workforce we represent.”

The BCCA has been part of the province’s industrial, commercial and institutional construction sectors for nearly 50 years.

“Chris is taking the reins at a time of immense change and opportunity,” notes McLachlan. “Technology, infrastructure development, skilled workforce challenges, and even the traditional association business model are all in play. I know he’ll do a great job, and I look forward to seeing what the future brings.”

Tech sector moving into priciest office markets

The gap is widening between the world’s two priciest office markets as London suffers from Brexit uncertainty and a decline in the value of the pound sterling. Hong Kong is firmly entrenched atop JLL’s global premium office rent rankings with key occupancy costs pegged at USD $302 per square foot, more than 50 per cent higher than the next highest rate of USD $197 in London’s West End.

Midtown New York, Beijing and Tokyo round out the top quintile for the bundle of costs that include net effective rents, service charges and property tax. Meanwhile, Toronto ranks 30th, offering some of the most competitively priced office space in the 2016 overview of 35 major global cities.

“While only a fraction of a city’s corporate base will pay such premium rents, the tracker benchmarks office occupation costs on a like-for-like basis,” JLL’s recently released report notes. “It provides a useful barometer of relative city attraction and highlights the intense strains that many cities face as their real estate markets try to accommodate growth.”

Hong Kong, Beijing and Tokyo all register vacancy rates below 2 per cent for this premium stock, whereas vacancies in New York’s midtown district are closer to 9 per cent. London’s west end boasts a tighter 4 per cent vacancy rate, but relative occupancy costs have dipped by 15 to 20 per cent since 2015 due to depreciation of the UK pound sterling and what JLL terms “a modest reduction in net effective rents”. In contrast, premium rents in New York are up about 10 per cent and JLL analysts predict “a further uplift is in prospect during 2017.”

The report also points to a shifting tenant base among trends to watch. “Traditionally, premium office space has been the domain of high-value, high-margin businesses in financial services (e.g. private banking, corporate and investment banking), professional services (e.g. legal, management consulting) and high-end fashion/luxury goods. More recently, a greater number of tenants from the technology sector are targeting premium buildings to attract top talent and enhance their brand equity,” it advises.

Toronto is characterized as a New World City along with San Francisco and Sydney, which are positioned eighth and 23rd in the premium office space rankings. Interestingly, Toronto’s net effective rents appear to be the lowest of all surveyed markets, but additional costs bump it above Sao Paulo, Mexico City, Houston, Amsterdam and Brussels.

Tricon Capital Group acquires California portfolio

Tricon Capital Group Inc., a principal investor and asset manager focused on the residential real estate industry, announced that its Tricon Lifestyle Communities investment vertical has acquired a portfolio of three housing communities in California for a total purchase price of $30.4 million.

Two of the communities, located in Indio, are age-restricted properties totaling 336 rental units. Indio sits in the Coachella Valley, a popular residential market for retirees near Palm Springs. The third property, Springdale Estates, is located in San Marcos (San Diego County) and is a family community consisting of 85 residential units. TLC intends to execute a capital improvement program focused on the amenity centre and entrance features at all three communities.

The total purchase price of $30.4 million was satisfied with cash and a seven-year non-recourse financing package at an average 62 percent loan-to-value and 3.85 per cent fixed interest rate. This transaction expands TLC’s presence into California and increases its portfolio size to 3,065 residential pads across 14 communities, with approximately $129 million of assets under management.

About Tricon Lifestyle Communities

Tricon Lifestyle Communities focuses on acquiring, enhancing and managing manufactured housing communities across the United States through a joint venture with its third-party operating partner, Cobblestone Real Estate LLC, a vertically integrated asset and property manager. TLC’s strategy is to assemble a high-yielding, institutional-quality portfolio of largely age-restricted communities in a highly-fragmented market that is primarily dominated by private owners. TLC aims to generate stable cash flow by leasing pads to owners of prefabricated homes within its MHCs, and to enhance the value of these communities through capital improvement programs and upgraded resident services.

What Apartment Owners Look For in a Lender

When Kevin Green is contemplating the purchase of a multi-million-dollar apartment building, he wants a lender with expertise in the multi-family asset class, someone “who understands a building’s bones.”

Ideally, the lender should be, “your financial team-mate, partner, advocate,” says Green, president of Greenwin Inc., one of Canada’s largest, privately-owned residential property management firms.

While many buyers decide on the property that they want to purchase and then enlist a mortgage broker to shop around at the banks for the best rates and terms, Green likes to involve his lender from the outset.

“We want to acquire assets, so we hunt like a team,” he says. He switched from a bank to First National Financial LP shortly after meeting Robert Fleet, a financing specialist and Assistant Vice-President at First National, Canada’s largest non-bank mortgage lender.

“It was a good move for Greenwin,” says Green, whose style is to act quickly when purchasing a building. First National has a reliable eye for evaluating the value and condition of the property, Green says, and they provide sound strategic advice.

Whether the lender is a bank or a non-bank institution, deep knowledge of the complexity of the multi-family sector is essential as well as CMHC expertise, he adds.

First National’s Robert Fleet and Peter Cook, Assistant Vice-President of commercial lending, advise that borrowers should look at the reputation and experience of the manager handling their files as well as the reputation of the institution.

“You don’t want to deal with an inexperienced person recently transferred from another department.”

Knowing what it takes to get the deal done

Depending on the loan size, a borrower could potentially save tens of thousands of dollars in interest with a CMHC-insured mortgage, which typically offers lower rates.

“But the lowest interest rate on its own is not the most important thing,” say Cook and Fleet. “The focus should be on the total cost of borrowing.”

For instance, the cost of third-party reports, such as appraisals and environmental, engineering and structural studies may vary by thousands of dollars depending on the lender: “Borrowers should request that their lender provide them with three quotes from approved third-party firms and disclose processing and closing fees. The lender’s legal fees should also be taken into consideration.”

Greenwin’s Kevin Green says it speeds up the process considerably when the lender provides the borrower with a detailed checklist of what is required to get the deal done.

Cook and Fleet say every lender has a different approval process.

“The borrower should ask how long the process will take and how many credit reviews are required to approve the loan. He should also ask how quickly he can expect a letter of interest, a commitment letter and at what point he may lock in the rate in advance of funding. These are important questions to ask prior to selecting a lender.”

For Green, the relationship with his lenders goes beyond transactions, valuations and discussions about roofs and boilers. His company is involved in providing social programs for families in some of Toronto’s more impoverished neighbourhoods, he says.

“We want to make it safe. We want kids staying in school and getting jobs.”

First National has provided financial and moral support for these endeavours. “When we launch a social program, First National is there. If we open a centre, First National is there.” It means a lot, Green says.

Peter Cook and Robert Fleet are Assistant Vice presidents, Commercial Financing at First National Financial. Get to know Team Cook here.

Follow First National on LinkedIn for other great commercial real estate financing content from our specialists.

Finding the right contractor

In today’s economy, any organization looking to start a new construction project faces certain challenges. Choosing the right contractor and design/builder using criterion based on individualized, industry-specific needs can make the difference between a successful project and a bona fide disaster. With the glut of service providers floundering in this space and willing to cut deals – and corners in kind, it’s imperative to take even a few fundamental considerations into account before signing on the dotted line.

A commercial construction project usually involves one overriding factor above all others: the bottom line. While certainly a critical factor in the decision making process, budget should not be the only one. When cost alone is the primary focus of a project, serious repercussions are likely to follow – poor service, time delays, hidden costs, changes orders, and non-existent follow up to name just a few.

When vetting construction managers and design/builders, it’s important to consider each and every aspect of the project “life cycle,” from the company’s own vision to the post-project completion period. Here are a few key life cycle-based hiring considerations:

Budget: Understanding precisely how financial limitations will impact the related financing process at large is far easier when partnering with an organization knowledgeable about commercial construction finance and can walk the customer through each and every step. While most developers and design/builders will simply refer their customers to a bank or other lenders for financial advice, its best to seek a higher caliber, full-service firm that provides such financial planning consultation in-house.

Service Scope: The construction manager and design/builder industry is fragmented and there is little service standardization. The majority of companies offer only a portion of services required in the entire project life cycle and do not provide the comprehensive oversight that allows clients to disengage from the construction project and maintain focus on their other business development and growth initiatives. It’s optimal to retain a construction manager and design/builder with a full solutions, end-to-end project management approach, which offers the benefit of single contact-point project control and accountability.

Industry Experience: Whether a medical office, a church, an office park or any type of commercial property, each type of business has specific needs that not all construction managers and design/builders are prepared to meet. It is essential to hire a company with the ability, experience, and expertise necessary to plan and execute the project so that it meets both the vision of the client and realistic financial restraints. Companies that are suited for a given project will not only have the technical expertise to build a new facility to the desired specifications, but will also have the client’s best interests in mind throughout the entire process.

Development: Many times organizations attempt to serve as project developer only to learn it takes a specialized skill set and years of development experience to do the job effectively. While development is viewed as exciting and challenging, it’s usually underestimated from a time and experience perspective. When developing in the commercial realm it’s important to hire a firm that has a demonstrated track record of working in partnership with high caliber architects, engineers and subcontractors with synergistic philosophies and culture to deliver a high quality product.

Land/Property Acquisition: The most critical step to a successful land acquisition is a properly structured agreement. While this may sound elementary, all too often organizations forego consultation and enter into a land agreement that doesn’t provide them the protection they need when faced with unforeseen circumstances. This can include land that ultimately does not meet their needs, more time is required to complete governing approvals or, worse, the project fails all together. Ensure the construction manager and design/build firm you hire has direct experience formulating land agreement documentation and be sure to cover a variety of “what if” scenarios as the paperwork is being prepared.

Architecture: The architecture aspect of a project can make or break the budget if clarity is not achieved in the organizational phase. Problems arise when organizations circumvent organizational and financial assessments and go right to the architect, which can lead to multiple plan changes throughout the design phase or a floor plan that does not meet organizational needs. A qualified construction manager and design/builder will work very closely with the architect, along with professional subcontractors who will be performing the work, to ensure project parameters are crystal clear and maximize the chance of the project being completed to spec, on time and on budget.

Construction: Once the design, development and other front-end aspects of a project are approved, it’s time to build! Having a construction manager and design/builder on board from the vision stage through project completion means that you don’t have to go through the bid process yet again when it’s time to break ground. As goes without saying, the construction manager and design/build firm you hire should have extensive experience serving as project manager and general contractor for commercial construction projects of similar size, scale, scope and complexity – optimally in the same industry. Be sure to take on-site tours of buildings the company has helped design, develop and build, both new and old, as you’ll want to ensure the buildings stand the test of time.

Client Service: Construction management and design/build companies, like any other organization, operate for profit. The most desirable of these, however, are aware that their own success hinges upon that of their clients. Be sure to assess a firm beyond photographs in a project portfolio. Look for a company that has verifiable examples of how they provided solutions when unexpected problems that arose. Experienced firms will have a well honed protocol to minimize surprises and to keep a client duly informed. Much is also said about providing outstanding client service throughout the course of a project, but what about after final payment has been rendered and a project is complete? Will the level of service change? It’s important to thoroughly interview past clients of the development and design/build firm under consideration, and to specifically ask about post-project interactions. Stellar referrals in this regard will speak volumes about a company’s integrity and character.

Use this project life cycle-based check list when hiring a commercial developer and design/builder and you’ll be well on your way to a successful outcome that not only meets, but may very well exceed, expectations.

Ryan Regina is the co- founder and owner of BIG SKY Enterprises (www.bigskyllc.com),an industry leading construction manager, design/builder and finance firm that strategizes, executes and oversees every aspect of a project development life cycle to provide clients with single professional contact-point control.

Maple Ridge recognized for municipal excellence

Metro Vancouver Chapter of the Commercial Real Estate Development Association (NAIOP) has presented Maple Ridge with two NAIOP Awards for Municipal Excellence recognizing Maple Ridge as the ‘Most Improved’ and ‘Most Business Friendly Municipality’ in the region. This is the second year that Maple Ridge has received these awards.

The NAIOP Awards have been given out for the last five years by the commercial real estate development association. The 2016 Awards were based on an office development project that was sent to all communities replicating the processes a company would follow if they were filing a development application.

The award materials noted that Maple Ridge was presented the ‘Most Improved Award’ based on a 38 per cent reduction in development fees from 2014 to 2016 (due to incentive programs) and a 17 per cent decrease in processing time to 150 days.

Maple Ridge also received an award for “Most Business Friendly Municipality’ based on policies that support temporary tax exemptions on new commercial buildings in the city’s downtown and further incentives for developments that use green building practices. These programs also offer the opportunity for rebates on development fees based on specific criteria.

In her presentation to the association members, Mayor Nicole Read talked about the commitment that Maple Ridge has to constant improvement in our processes. “We are very proud to have received both of these awards for the second year in a row. This recognition inspires us to continue working on streamlining our processing times and ensuring that our fees are reasonable and competitive so we can earn our way back here next year,” she said. “One of the focus areas for Council in 2017 will be to work on identifying and zoning lands for continued commercial and employment generating projects. We have an incredible, fast growing, community and we are proud to have the chance to showcase the opportunities for investment in Maple Ridge.”