Real estate development is multifaceted. Multiple disciplines within the development industry are involved in seeing a development project through from land acquisition to occupancy. On November 23rd, 2010, ULI Toronto hosted its first annual Art of the Deal program which featured some of the major players involved in making the Ritz-Carlton high-end hotel/condominium project such a success.

The prominent 53-storey Ritz-Carlton building consists of 267 hotel rooms as well as 159 condominium units. The building’s 5-storey glass podium which includes, but is not limited to, the hotel’s lobby and restaurant was thoughtfully designed to animate the building and its entrance along the Wellington Street frontage.

Speaking on behalf of development and construction, Garnet Watchorn, President and Chief Executive Officer, Graywood Developments Ltd., gave the audience insight into the importance of networking and relationship building in career development. Graywood Developments’ relationship with Cadillac Fairview afforded them an opportunity to purchase a portion of the CBC lands site to accommodate the high-end hotel/condominium building. A further business relationship at Ritz-Carlton led to the beginnings of the current hotel/condominium co-ownership structure.

The co-ownership structure was developed under very complex and abstract negotiations between the Ritz-Carlton and Graywood Developments, represented by Gillian R. Stacey, Partner from the law firm of Davies Ward Phillips & Vineberg. Gillian described the difficulties in negotiating a beneficial ownership contract and operating agreement with such a well-established brand as the Ritz-Carlton. Gillian will continue to play an on-going interpretive role with the operation agreement as issues will undoubtedly arise in the early stages of operation and occupancy.

The Ritz-Carlton “brand” was also a factor in the design of the building and the layout of the units. Mansoor Kazerouni, Executive Vice President, Page + Steele / IBI Group spoke on the areas of architecture and planning for this project. When it came to building design, reconciling Ritz’s brand standards with Toronto’s market demands proved as challenging as it was blending the hotel grid with the residential grid. Mansoor demonstrated the importance of thinking outside of the box when describing the decision to relocate the main entrance of the building on to Wellington Street.

President of Baker Real Estate, Barbara Lawlor, spoke on her role in the marketing and sales of the Ritz-Carlton’s residential units. Barbara described the constraints involved with selling an unfinished product. Luckily marketing received some assistance from the international reach of the Ritz-Carlton brand alone. One third of those purchasing the luxury condominium units are residents from outside of Canada.

Full occupancy for the condominium component of the building is anticipated by March 2011. Ritz-Carlton is currently accepting hotel reservations starting March 1st, 2011. The art of the deal is not just a pure business transaction. Non-linear thinking is required from all disciplines involved. Despite the unpredictable economic crash of 2008, the Ritz-Carlton was a successful venture which set the bar for luxury hotel/condominiums in the City of Toronto.

Nicole Moxley
Communications Committee
Planner, Toronto and Region Conservation