Don’t judge a book by it’s cover!

This building doesn’t look like much from the outside, and perhaps it’s not.  Fault the photographer to some extent.

But Tecumseh Lofts is quite a unique find at King & Bathurst…

The term boutique-building refers to a small, unique residence of no more than fifty units.

Boutique buildings can be very hit or miss, in my opinion.

The positives are inherent in the scarcity of the real estate itself.  With only a handful of units in the building, buyers would be more willing to overpay for a unit when it comes onto the market, which is rare.

The one large drawback with a smaller building is that with fewer residents contributing into the reserve fund, unexpected repairs can be costly.  It’s not uncommon for a “special assessment” to be levied against unit-holders in the building if, for example, the roof needs to be repaired.  Larger buildings with more residents and better property management companies have a much easier time with maintenance on the building.

Tecumseh Lofts, located at 766 King Street West just east of Liberty Village, is a 5-storey building with 28 units in total.  The building actually looks even larger than it is due to the retail storefront comprising most of the first level.

In the last two years, only five units at Tecumseh Lofts have changed hands.

The units at Tecumseh Lofts have authentic loft features such as the high ceilings, exposed ductwork, and exposed concrete walls and floors in selected places, however these are considered to be “soft lofts” since the building is not a conversion from an older structure.

The 4th floor is comprised of 2-storey and some 3-storey units where the ceilings on the second level reach eighteen-feet in height.  With only 28 total units in the building, there is so much variety between the units that you won’t find two units exactly alike.

There are 1-bedroom, 2-bedroom, and 3-bedroom units with flat, 2-storey, and 3-storey styles.

The feaure I enjoy the most, of course, is the open terraces on the 4th floor units.  Upwards of 400 square feet, these terraces are equipped with gas lines and BBQ’s are permitted by the condo corporation.

Unit #412 at Tecumseh Lofts, priced at $539,900, is a 2-bedroom, 2-bathroom unit of 1100 square feet spread over two living levels.  Technically a penthouseunit, upgrades abound from the true hardwood flooring, to the granite countertops in the kitchen and baths, to the whirlpool bathtub in the 5-piece master ensuite bathroom.  These upgrades are not present in every unit in the building.

The floating staircase on the main level saves almost a hundred square feet in open space, and along with the high ceilings, gives the unit that authentic loft feel.

Perhaps my only critique of this unit is the choice in paint colors, which range from blue, red, yellow, beige, white, and cream.  It’s just too many flavors for my liking, and in a sun-filled unit such as this one, the colors grab too much attention.

The kitchen, although small and tucked away from the open concept main floor, is gorgeous.  The ceramic backsplash works well with the light cherry cabinets, and the appliances are all in their infancy stages.  There is a centre island with granite counter that ties the kitchen together perfectly.

So what’s not to like about this unit?

Well, there are two things, in my mind.

First of all, the price.  It’s always tough to price a unit in a building as rare as those in Tecumseh Lofts, but looking at the previous sales, I think the $539,900 asking price is a little optimistic.  There was a 2-bedroom, 2-bathroom unit on the 2nd floor that sold in June of 2007 for $371,000.  It’s like comparing apples and oranges, but it gives us a place to start.  Then there was a 3-storey unit with 3-bedrooms and 2-bathrooms that sold in July of 2007 for $575,000.  Again, it’s tough to compare any two units in the building, but the price $499,000 keeps resonating in my mind.

The other issue I have with this unit can be found in the fine print on the MLS listing: “Seller will cover current assessment on or before closing.”  Well that’s great news that the seller will cover the special assessment, but it worries me that there was a special assessment in the first place.  As I mentioned at the start of this article, smaller, boutique buildings are often ill-equipped to deal with the wear and tear on the premises, and in this case it seems there was an unexpected cost that the reserve fund couldn’t cover.

I’m not denying that this is a beautiful unit at Tecumseh Lofts, I just don’t like having to try and determine value for a unit so rare.

On a long enough time horizon, I suppose it doesn’t matter if you pay $10,000 or $20,000 more than you “should.”  Over enough years, the premium paid for the unit is nominal.

But with the average condo-buyer moving every 2.6 years in downtown Toronto, I don’t want to be the person trying to value a one-of-a-kind unit with no comparables to speak of.

It’s a dangerous game to play.

That is, unless you are the seller….then you just let the good times roll…. 

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