The high-net-worth homebuyer market in Toronto, Canada's economic engine, is significant but largely underserved in the city’s preconstruction condo market.

Developer North Drive has, however, taken note and carved a niche within the sector in Southern Ontario’s crowded building industry.

It’s a business strategy that’s also proving resilient amid murky economic signals. Founded by brothers Jordan and Taylor Morassutti, and their childhood friend Robert Fidani, North Drive is currently developing its latest project, One Roxborough West.

The 12-storey, 21-unit tower in Rosedale-Summerhill was originally designed with 27 units, but perhaps owing to its purchasing demographic — business leaders whose names would generally be recognizable to the public, Jordan Morassutti said — there have been several combined-unit purchases. 

One Roxborough West over 60% sold

Morassutti, co-founder and partner at North Drive, added that the project is over 60 per cent sold and has already secured financing from a Schedule I institution.

Units at One Roxborough West range from 2,100 to 5,700 square feet, averaging 3,000 square feet. Much of the sales activity has focused so far on the upper storeys, where some buyers have taken as much as a full floor, with pricing on these units ranging between $16.5 million and $18 million. 

“(One Roxborough West) comes down to stage of life — the idea of single-level living is attractive to these buyers,” he told RENX Homes. “The scarcity of (this) product type has allowed us to achieve a high level of sales velocity.”

Remaining individual units start in the $3-million range.

Activity in the conventional housing market has decelerated over the past couple of years as consumers have struggled with non-discretionary expenses. That’s also exposed how reliant the majority of homebuyers are on home equity.

Conversely, high-net-worth homebuyers are impervious to these conditions. It is precisely for this reason North Drive has built its business around developing wholly end-user-centric communities for a clientele that, while very niche, has allowed the company to sail through many of the same headwinds.

“We targeted these up-market end users because they’ve amassed significant wealth outside of their homes, but they don’t view their homes as piggy banks for retirement,” Morassutti said. “They’re looking to make a true lateral transition from homes that have appreciated quite dramatically over the last decades, and this project has seen tremendous pent-up demand.”

North Drive builds its reputation

The boutique nature of North Drive’s developments, Morassutti added, surely appeals to the fastidious tastes of its clientele, but there’s another element that’s taken years to cultivate.

“I can tell you that, in Toronto, the business community is small and tight-knit, and we know most of our buyers by a degree or two of separation,” he continued. “They know somebody else that has bought into one of our buildings. Reputation is absolutely critical to our success.”

The residential component of One Roxborough West begins on the third floor — floors three to five will each have four corner units; floors six to nine will each have three units; and two units per floor are presently planned for remaining floors — and is entirely customized, from meeting the appliance provider to the kitchen mill worker.

“It’s quite a long hand-holding exercise that’s typically done in collaboration between the buyer, their interior designer, and whoever else they may have advised through the process,” Morassutti said. “Buying a preconstruction home is a tremendous leap of faith, and to whatever extent the purchaser loses confidence in the developer, or representative of the developer, they will exit immediately.”

The building isn’t particularly heavy on amenities; some units are designed with home gyms. 

The plan for commercial space

But it’s the first two levels, 14,000 square feet of combined commercial space, that will marry the needs of One Roxborough West’s homeowners with those of the immediate neighbourhood.

CBRE has been hired to curate the expanse, and although no decisions have been made, Arlin Markowitz, EVP of urban retail at CBRE, teased an array of options for the 7,000-square-foot second floor. He noted it will either be a single suite or a split, and is targeting what he called “a private family office,” although there’s no shortage of “quasi-retail” merchants searching for space in the area.

“While we are canvassing some office uses, like family offices, it’s very possible this type of second floor doesn’t end up being a traditional office, and might be what I like to call ‘quasi-retail’ — think a cosmetic clinic, a real estate brokerage, a bespoke tailor shop, a super-exclusive personal training studio,” he said.

One Roxborough West’s five grade-level retail units haven’t been finalized either, but Markowitz envisions they’ll merge into a milieu distinguished by fine dining and haut couture boutiques. 

“We’re looking to curate the right mix of goods and services that will service both the neighbourhood and the residents,” Markowitz said. 

As it makes final preparations to begin building the One Roxborough West project, North Drive also has a couple of other developments on the go.

North Drive recently topped off 10 Prince Arthur on the border of the Annex and Yorkville. The seven-storey, 25-suite boutique building — featuring units averaging 2,500 square feet — was designed by Richard Wengle and is slated for occupancy in spring 2025.

It is also launching 2 Post Road in Toronto’s Bayview neighbourhood, a 60-unit development on approximately two-acres that is also designed by Richard Wengle.