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CMB MAGAZINE cmba-achc.ca fall 2016 | 41 homes in general, compared to condos. Among the above-mentioned ways to source new infill opportunities, the one option that involves both a high degree of creativity and market savvy is to identify and repurpose former commercial sites that may be contaminated and, therefore, involve the added cost of soil remediation. Understandably, many builder clients may shy away from this type of opportunity because of cost uncertainties. But with a bit of common sense and by setting the right process in motion, infill projects on this type of land can be profitable endeavours. A common-sense approach means, for example, that the initial offer on potentially contaminated land should be conditional, pending soil analysis and an estimation of costs if the soil does, in fact, need to be remediated. With that knowledge in hand, it gives the builder a much clearer picture of what it will cost to develop the site (and the broker to, in turn, finance it), what type of dwelling to build in order to make it a profitable venture and, ultimately, whether there is justification for the builder client to go back to the vendor and request a lower price. Another common-sense, upfront precaution is to align oneself in the early going with a financial partner that is open to the idea of financing an infill project on commercial land in the first place – a prospect some institutions may shy away from altogether. Another way to source new build opportunities is to start thinking outside the 'GTA box.' If you haven't helped to finance any new build projects slightly further afield, there couldn't be a better time to set your sights (or, perhaps more appropriately, sites) on bordering communities such as Richmond Hill. Also worth consideration are satellite communities such as Guelph, Cambridge, Kitchener-Waterloo and Hamilton to the west, and Pickering, Ajax, Whitby and Oshawa to the east – communities that share easy access to the GTA via GO Transit, as well as the 401 and the 407 highways. ere are far more undeveloped land and infill opportunities within these communities than currently in the GTA. Demand for homes in these areas is still strong and, not unlike the GTA, the price gap between low-rise (as opposed to mid- to high-rise) homes continues to grow. erefore, you might want to partner with a builder already based in some of these markets, or work with existing builder clients that may be open to new projects outside the GTA. Whether helping to finance that next project within the GTA or in an outlying area, at the end of the day the basic principles in this current market remain the same: Is there sufficient demand, and will the project be profitable for both the broker and the builder? With a little creativity, planning and foresight, the answer should be a resounding "Yes." Paul Rayment is vice president of Foremost Financial Corporation and has been a BILD member since 1996. He has extensive experience in real estate development and project financing within the GTA and select other communities in Southern Ontario. Left: Townhouses support the densification of areas that are predominantly detached. Right: Example of a school-to-residential conversion project. Below right: Laneway townhomes built on land behind current property. foremostfinancial

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