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Real Estate: Six Views, One Industry
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FROM THE GROUND UPCanadian Real Estate: Six Views, One Industry
Real Estate& Construction Specialty Group
The real estate industry presents a business environment
where the numbers are big and the risks are high.
Choose an advisory team offering deep industry expertise
to assist in building customized solutions and to position
your assets to optimize value.
Obtain the information you need to prosper in today’s
challenging market. From development; to expansion; to
stabilizing operations; to exit strategies, Fuller Landau
delivers the services you need.
In a time of economic uncertainty, rely on advisors
with real industry experience and in-depth knowledge.
This is a time when your advisory team makes a
real difference.
Fuller Landau LLP 151 Bloor Street West, 12th FloorToronto, ON M5S 1S4
(416) 645-6500www.fullerlandau.com
Mergers & Acquisitions
Due Diligence
Transactional Support
Capital Raise & Financing
Asset Based Lending
Restructuring & Insolvency
Business Advisory
Litigation Support
Succession Planning
Valuations
Wealth Management
Audit & Assurance
Tax Planning
When fi rst inspired to dedicate an issue of Profi le magazine focusing on the Real Estate industry the thought was to address the coming years and how best to cope. Well this is Profi le magazine and we Showcase Canada’s Industry Leaders so who better to fi ll us in on what we should know than the six leaders we’ve featured in “From the Ground Up”.
New beginnings like a New Year and a new US President one would believe the road ahead to be clear and smooth. Unfortunately the world economy still looking for its bottom and a mass media always trying to top yesterdays doom and gloom seem to have most convinced the best of times are over. Let me introduce you to our six Leaders and read why each as different as their industries still share success in these troubled times.
Choosing the title “From the Ground Up” is never more fi tting when covering the industries in this issue. Those familiar with the expression “he wrote the book on it” will enjoy reading about Walter Traub, his con-tributions and his years as a real estate lawyer. For building owners and developers who are considering cost planning and cost control Ronnie Mandowsky will show you the way. Andy Schwartze is the founder of Insurance Marketing Services Ltd., and has made a career out of providing insurance and risk management support to the property management industry and its building owner clients. Michael Stoyan, a Partner at Fuller Landau, covers the premise that protecting and enhancing the value of your real estate business is only part of the picture, realizing its value and increasing your personal net worth is the other side of the coin. Finally, Moray Tawse of First National is one of Canada’s leading experts on commercial real estate lending and is often called upon to deliver keynote addresses at national real estate symposiums.
As you can imagine getting all these busy professionals together for a photo shoot was easier said than done so a special thank you to Brassaii at 461 King Street West for hosting our private lunch and Jacobs & Co Steakhouse at 12 Brant Street for allowing us access to hold the photo shoot during off hours. Nick and Gian Carlo you’re the best!
In closing the real estate industry was defi nitely an industry that was worth exploring and bringing to the forefront. There are many professionals and Profi le magazine is grateful to these six leaders for sharing their stories.
Best Regards,
Juan Malvestitti
Publi
sher’
s Note
OWNERJuan [email protected]
EDITOR IN CHIEFMarc L. Côté
SENIOR DESIGNERParastou Gheidarpour
PHOTOGRAPHYFaith Higgins
CONTROLLER Florencia Rojas
LEGAL Carla Bracamonte
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V I S I O N • S T R AT E G Y • R E S U LT S
All contents copyright © Modern Empire Inc.
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FINANCE
First National, Doing Things a Little Differently
COST CONSULTING
Pelican Woodcliff Offers a Wide Range of Real Estate Services
LEGAL
GSNH, Mortgage Law Specialist
ACCOUNTING
Fuller Landau Ideas on Increasing the Value of Your Business
INSURANCE
IMS Insurance Program for Reliable Protection
ARCHITECTURE
Core Architects Rise to the Top
Contents6
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W W W . P R O F I L E M A G A Z I N E . C A
7100 Woodbine Avenue, Suite 208, Markham, Ontario L3R 5J2
For more information, please contact us: T: 905.477.4507 F: 905.477.4509 www.pelicanwoodcliff.com
ProvidingValuable Adviceand Creative Strategiesfor the Real Estate Industry
> Default Remedy
> Project Management
> Property Management> Physical & Financial Due Diligence
> Cost Planning & Control
> Project Monitoring
> Arbitration & Litigation Support> Mechanical & Electrical Services
Moray Tawse, Vice-President
First National, Doing Things a Little DifferentlyFirst National Financial LP has built its reputation by doing things a little differently. That approach has made the company Canada’s largest non-bank provider of single-family residential mortgages.
6 | Finance
w
Congratulations First National
on your continued success
1.866.482.0439www.skylineonline.ca
Moray Tawse, First National’s Vice-President, Mortgage Investments, says when he and Stephen Smith, the company’s Chairman and President started the company they recognized that there was a need in Canada for a fi nancial institution that would service the then newly emerging mortgage brokerage market.
In 1988, when First National was founded, the mortgage brokerage business was in its infancy in the Canadian market. Tawse estimates that is those days fewer than three per cent of the residential mortgages in Canada were originated by mortgage brokers. Today mortgage brokers originate almost 30 per cent of all new residential mortgages in Canada.
Tawse is one of Canada’s leading experts on commercial real estate and is often called upon to deliver keynote addresses at national real estate symposiums. Smith is a noted innovator in the development and utilization of various securitization techniques to fi nance mortgage assets and is a regular speak-er at securitization and fi nancial services conferences.
“We started the company,” says Tawse, “Because we felt there was a need for a company that could originate and service mortgage product for small institutions that wanted to buy mortgage assets, but did not have the size to open up their own department.”
Institutions like pension funds and life insurance companies wanted to enter the residential mortgage market, but they didn’t have enough volume to warrant starting and operating a mortgage division that would write or process new mortgages.
First National was able to fi ll that gap by offering its servic-es to institutional investors that wanted to enter the new mortgage-backed securities fi eld. Mortgaged-backed securities, then a relatively new product, were created by pooling a group of residential mortgages insured by Canada Mortgage and Housing Corporation (CHMC) and using those mortgages to create a bond that investors could buy, sell or trade.
With large institutional investors looking to enter the mortgage fi eld, the mortgage brokerage business began to grow and First National targeted this newly emerging market. “Mortgage brokers were starting to gain a larger share of mortgage originations in Canada,” says Tawse. “We were on the leading edge of originators as the mortgage brokerage channel grew.”
Tawse says the business grew because, with the advent of the mortgage-backed securities, competition within the residential mortgage business increased. Competition led to a growth in non-traditional mortgage sources and allowed First National to acquire mortgages, package them and sell it to other investors. “It meant you didn’t need a large balance sheet to participate in mortgage origination, or the profi ts of mortgages,” says Tawse.
To succeed in the highly competitive residential mortgage business, First National has always looked for ways to do things a little differently. Given the stiff competition for residential mortgages the company knew it would have to create effi ciencies in its underwriting department if it
wanted to shave costs and grow its market share. To do that First National developed in-house software that is now known as Merlin. “It’s probably the most sophisti-cated underwriting and delivery system for the residential mortgage broker channel in Canada,” says Tawse.
The Web-based software allows a residential mortgage broker to fi le a mortgage application online. Once the application is fi led, they can access it and check the progress of the application as it goes through the various stages of approval. Under the older paper-based application systems, residential mortgage brokers would fax informa-tion to lenders and then phone them to see if the fax had been received. They would then have to wait by the phone for approval. Sometimes, says Tawse, the mortgage brokers would phone the underwriter, but they would be unavail-able, so the application would be stalled.
Merlin solved or lessened many of these communication problems. Using Merlin, a residential mortgage broker can fi le the application into the system and know that the application has been received. Once the application is received, they can log onto the system and follow it through the various approval stages. They can fi nd out immediately, says Tawse, if the mortgage is approved or if information such as an employment letter is outstanding.
“It took away the need to correspond with the underwriter during business hours. They can access the system 24/7 from anywhere,” says Tawse.
“We became leading edge as far as providing service to the mortgage broker. As a result, our market share within the mortgage brokerage community really started to grow.” Today, says Tawse, First National has the second largest market share of all institutions that participate in the mortgage brokerage channel. That includes a number of major Canadian banks like the Canadian Imperial Bank of Commerce, TD Bank and the Bank of Nova Scotia which compete for business from mortgage brokers who originate mortgages and sell them to institutions. Some Canadian banks such as the Bank of Montreal or not involved.
Having built a successful residential mortgage business model, First National started a new commercial mortgage division in the early 1990s. The division was formed to originate and service both conventional commercial mortgages, and CMHC-insured mortgages.
Currently First National writes about $11 billion in new mortgages each year and has over $40 billion in mortgages under management. As of this year, First National is now, is the largest originator in Canada of CMHC multi-family mortgages.
In 2006 a decision was made to take First National Public. Using the income trust business model, the company listed on the Toronto Stock Exchange as FN.UN-TSX in June of 2006. Subsequently, the government of Canada passed leg-islation outlawing the income trust business model. Existing income trusts have to convert to another corporate struc-ture by 2011. Tawse says First National intents to convert to a corporation in 2011. The company’s future growth
strategies include: Providing a complete range of mortgage products; Increasing the number of mortgages under administration; Lowering costs through effi cient processes and maintaining a conservative risk profi le.
On the residential side of the business, a typical First National customer is someone who can prove their income and has a good credit rating. “We try to compete for the top quality business by having exceptional rates, and exceptional service,” says Tawse.
The commercial side of the business, on the other hand, is very much service and rate driven. “We have a reputation for being able to turn applications around very, very quickly and offer some of the lowest rates in the marketplace,” says Tawse.
Going forward in the mortgage market, Tawse expects that the current credit crisis could cause a number of smaller fi nancial institutions to have to downsize or withdraw completely from the market. He also expects to see the volume of real estate deals slow over the next few years. Despite that, he feels First National can continue to grow.
“Given the way we fund our mortgages, we have a lower cost to fund than some of our competitors. We think that will enable us to increase our market share over the next few years.”
In his private life, Tawse has used his business savvy to start one of Ontario’s most noted vineyards and winery. Located near Vineland on the Niagara Escarpment Tawse Winery has about 80 acres of vines planted in Pinot Noir, Riesling and Chardonnay. The two vineyards, the 32-acre Cherry Road Vineyard and the 48- acre Quarry Road Vineyard, have a unique hillside terrain and the climate in the area echoes that found on the slopes of Burgundy in France. The Niagara region, says Tawse, shares the same sunny latitudes, as Bur-gundy, giving the vines not only excellent growing condi-tions, but a distinctive terroir or soil condition. Terroir, he says, is what gives each region or wine its distinctive fl avour.
At the Cherry Road Vineyard, which is located on the same property as the winery, Tawse has named various parcels of land after his three children, Carly, Robyn and David.
Of his wine business Tawse says “I’m very passionate about the Ontario wine business. It’s a family business that allows me to get back to the land. It gives me a different type of excitement than the fi nancial services business.”
In 2005, Tawse opened a new state-of-the-art gravity fl ow winery. The philosophy behind creating the winery was a blend in itself says Tawse.
“We passionately believe in practicing traditional artisanal winemaking techniques,” says Tawse. “We also believe that enhancing these techniques with state-of-the-art gravity-fed processing and natural geo-thermal energy would allow us to gently and skillfully process each varietal to bring out its individual nuances and characteristics without compromise.”
“It became our mission to create an innovative, ecologically friendly winemaking facility and invite some of the world’s
most renowned winemaking expertise, such as Pascal Marchand from Burgundy to help us with our goal of making Canada’s fi nest wines,” he says.
Marchand, an internationally renowned winemaker, brings his extensive experience and in-depth knowledge of Bur-gundy wines to Tawse Vineyards as lead consultant. A Canadian who lived in France for over 20 years, Pascal turned the little known Domaine Des Epeneaux in the village of Pommard into one of the most sought after vineyards in Burgundy. During his years there, Marchand began seriously exploring and implementing organic and biodynamic growing methods. After producing highly acclaimed vin-tages, Pascal’s talents were recognized throughout the international wine press including Wine Spectator who placed one of his wines as number 19 on the list of the world’s 100 best wines, ahead of all other Burgundy wines.
In 2003 Pascal brought his expertise to the Niagara region serving as the Executive Overseer for the Clos de Jordanne project helping guide production of the winery’s ultra-premium Pinot Noir and Chardonnay. Today Pascal is very excited about Ontario’s terroir and looks forward to express-ing it within the vintages he is helping to create at Tawse.
Also part of the wine making team is Paul Pender, a graduate from the Niagara College Winery and Viticul-ture Program, and Brad Gowland winery manager who offers the winery an invaluable blend of sales, marketing administration and assistant winemaking experience.
In designing the facility Tawse had several goals in mind. First, was to design a winery that used the naturally sloping terrain to create a six-level gravity-fl ow processing facility. By using gravity, the fruit is handled gently from pressing to bottling. That means a minimum of oxidation and bruising, which re-lease fl avours prematurely, resulting in a lower-quality wine.
Another goal was to be energy and eco friendly. To that end Tawse dug three cellars, 72-feet long, 28-feet wide and 12-feet deep. Each cellar has six to eight feet of earth over top keep-ing the ambient temperature between 10 and 16 degrees Celsius, with natural humidity of around 85per cent. These deep cellars allow the wine to be barrel aged for 18 months.
The processing areas of the winery are heated and cooled using a geothermal energy system that uses heat pumps to control temperatures at each level of the winery. By using the ambient temperature of the water in a pond outside the winery, the use of traditional forms of energy was reduced by 80 per cent. In addition, a wetland biofi lter system allows the winery to completely reuse all its sanitary and winery process water. That water goes back into the pond where it is used for landscape irrigation as well as supporting a wetland habitat.
The last goal was to build a perfectly engineered process facility that operates effi ciently with a small staff. Each task was carefully thought out reducing the manpower needed to move hoses or equipment within the winery.
Today, the winery is producing about 10,000 cases or 120,000 bottles of wine each year which, says Tawse, is about the size he wants to remain.
One of Greater Toronto’s foremost building and development organizations, Verdiroc’s success is that it continues the family heritage of innovation, integrity and excellence.
All the best to the Consultants’ consultant, Ronnie and the
Pelican Woodcliff team. Continued success!
Verdiroc Development Corporation
1 Valleybrook Drive, Suite 201Toronto, ON M3B 2S7
Tel: 416.486.4270 | Fax: 416.486.4272 | [email protected]
www.verdiroc.com
BUILDING A BETTER FUTURE! FUTURE!
Pelican Woodcliff Offers a Wide Range of
Real Estate Services
In the Canadian real estate industry Pelican Woodcliff operates in a unique sector of the market. A multi-disciplinary real estate consulting fi rm, the company incorporates a broad-based selec-tion of real estate, construction and fi nancial services under one roof.
Ronnie Mandowsky, one of the company’s founders, says the fi rm is the result of a merger that took place 11 years ago between Woodcliff Construction Consultants and Pelican Management. Wood-cliff, which was owned by Stephen Clifford, was mainly involved in quantity surveying and cost control for construction projects. Pelican offered default remedy and project management services to its clients. Both men and their partner, Jim Ryan are now Principals of Pelican Woodcliff.
Mandowsky says the merger was an opportunity to bring the experience of two established fi rms together and create something that was greater than the sum of its parts. It also allowed the company to expand its services and increase its client base in Ontario, Quebec and Alberta.
Today, the company offers a wide range of real estate and construction services delivered with the fi nancial understanding necessary to advise clients how to successfully complete a project on time and on budget.
Cost Planning and Cost ControlFor building owners and developers who are considering a new project, cost planning and cost control is a major concern. To help clients control costs, Pelican Woodcliff takes a client’s plans and uses them to prepare detailed cost estimates. These estimates are the foundation upon which cost control is built.
Throughout the design stages they also look for opportunities to save money for their clients through the use of value engineering and cost-effi cient construction techniques. Pelican Woodcliff works directly with the client’s design team to develop ways to reduce costs through the use of cutting edge construction and engineering techniques.
Other planning and control services include: feasibility studies, cash fl ow projections, quantity takeoffs and tender analysis.
Project MonitoringIn addition to the cost control aspect of the project, Pelican Woodcliff also offers loan monitoring services to its clients. More and more, says Mandowsky, fi nancial institutions and private lenders require a third-party to monitor construction loans.
Mandowsky says Pelican Woodcliff’s role is to establish the project budget, calculate how much work has been completed at a given time and from that, determine the cost to complete the project and how much money should be advanced from the lender to the borrower.
In many cases the process starts with the preparation of a fi nancing package that the borrower uses in order to obtain fi nancing for the project.
Mandowsky says the company’s role is two-fold. They have to protect the lender, but also work with the borrower to expedite the whole loan process. While the company works for the lender, much of the information comes from the borrower. “We work in tandem with the borrower to supply information to the lender, which in turn facilitates getting the project fi nanced,” says Mandowsky.
Project ManagementPelican Woodcliff also offers project management services to building owners and developers. In its capacity as a project manager, the company becomes the owner’s representative for the entire project. “In effect we step into the shoes of the owner and deal with all issues from hiring consul-tants, obtaining planning approvals, hiring a construction manager, through to occupancy.”
12 | Cost Consulting
Ronnie Mandowsky, Principal
Pelican Woodcliff has worked as project manager on residential high-rise, as well as offi ce, retail and industrial projects. In some cases, says Mandowsky, an owner may hire a general contrac-tor to complete the work but they may not have the in-house expertise to deal with the general contractor on a day-to-day basis. In those cases Pelican Woodcliff will act as the owner’s representative in dealings with the general contractor.
Default RemedyWhile construction management and cost control have been the company’s staples for many years, today’s economic cli-mate has brought forward a need for another of the compa-ny’s services. Today many lenders are looking for a company that can deal with construction projects or existing buildings that are in fi nancial diffi culty or even receivership.
“The reality,” says Mandowsky, “is that we’re dealing with that more today than we have in the past 10 years.” In most cases, he says, the company is called in by a lender or a receiver that has taken over a construction project or income producing real estate portfolio.
Problematic real estate projects usually fall into two catego-ries, says Mandowsky. The fi rst is projects under development, where the company is asked to step in and manage either the completion of the project or asked to stabilize the project at its current stage of construction.
The second is where Pelican Woodcliff deals with an existing building, typically an income producing property, that has fallen in arrears.
In both cases Pelican Woodcliff would take over management of the building and act as project manager and/or property manager for the lender. The company manages the property until it is eventually sold. “In these cases,” says Mandowsky, “the lenders don’t really want to own the property. They want to stabilize it, sell it and recover as much of the loan as they can.”
Due DiligenceFor building owners and investors who are interested in expanding their real estate portfolio, Pelican Woodcliff offers both fi nancial and physical due diligence reports. “Investors interested in buying a property want to know everything pertinent about the property,” says Mandowsky.
Physical due diligence involves an in-depth study of the condition of the building and an assessment of the costs that a purchaser might expect to encounter.
“Our on-site inspection is carried out by a team of engineers who provide a full condition report on the building,” says Mandowsky. The heart of the report is a thorough estimate of capital costs that need to be put into the property over the next ten years.
Financial due diligence, on the other hand, is a process where the company takes a close look at the books of an income producing property. Examination of the accounting and op-erational information provided by the existing management determines if the true net operating income of the building is the same as that which has been provided by the vendor
or real estate broker. That means checking all the leases and recent year’s fi nancial statements for bad debt, uncol-lected rent or costs that may not have been included by the vendor. The review determines if the realty taxes are reasonable and if the contracts that are in place have been accurately represented.
“Net operating income is normally the most important num-ber because it is a multiple of net operating income that ends up being the purchase price,” says Mandowsky. “If we sub-stantiate a net operating income that is lower than the net operating income that was advertised by the broker, then the potential purchaser may say they are not willing to pay that price or they will go back and negotiate a new price with the vendor.”
Focused on serviceWhile Pelican Woodcliff offers a wide array of services, it remains a company that is very much focused on providing quality service and maintaining strong ongoing relationships with its clients. Mandowsky says that although many service providers are looked at as commodities, Pelican Woodcliff differentiates itself by providing its clients with a personal level of service, and its unique expertise.
Mandowsky, who is a P. Eng with an MBA, started out in the real estate industry working for a Toronto-based real estate development company. “Those years gave me a good feel for what it means to be on the side that requires the service, not gives the service,” he says.
“I think that experience, of having been on both sides, gives me and us the ability to better understand what it is that our clients need and it allows us to be able to cater to those needs.”
The company currently employs over 20 people. The pro-fessional staff is made up of quantity surveyors, professional engineers, project managers and administrative assistants. Many of the employees have been with the company for a number of years.
“We have a great group of people. It’s a great team that was assembled over a number of years. The retention rate in the fi rm is quite high and I think that speaks to the kind of good working environment we strive to maintain and the positive attitude and leadership by the owners. We have a very loyal team.” says Mandowsky.
And Mandowsky counts himself as one of the happiest of the company’s employees. “I enjoy coming to work every day. It’s a nice place to work. If the owner enjoys coming to work everyday it’s a good sign that something right is going on,” he says.
Mandowsky, and his wife of 28 years, Tsipi, have three children. His oldest son Ori, is a lawyer with the fi rm of Goodmans LLP, while his oldest daughter Dana, 22, recently graduated with an honours degree in psychology from the University of Western Ontario. She is currently working in Israel. His youngest daughter, Talia, is a fi rst year student at McGill. Their Boxer, Cleo, is aging gracefully.
3625 Dufferin Street, Suite 215
Downsview, Ontario, M3K 1N4
T: (416) 635-7575 FF: (416) 635-8056
e-mail: [email protected]
Royal York GrandRoyal York & Eglinton. Etobicoke, Ontario
Condominium - 216 Units, 15 Floors
Wynford Mews150 Wynford Drive, Toronto, Ontario
Commercial Building & Alteration to Existing Building
20,000 sq. ft. and 5,000 sq.ft. (Extension)
Ukrainian Canadian Care Centre60 Richview Road in Etobicoke, Ontario
New Four-Storey Tower Extension
Additional 42 Beds to the Existing 160-Bed Facility
Toronto Community Housing Carlton Street, Toronto, Ontario
Apartment Building - 110 Units, 12 Floors
CONSTRUCTIONCONSTRUCTION
MANAGEMENT
Current Projects Underway
Best Wishes for Continued Success
to the Pelican Woodcliff Team.
H&R Construction Management Ltd., is a
premier General Contracting and Construction
Management fi rm in southern Ontario.
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The Mortgage Law Specialist
16 | Legal
When Walter Traub was called to the Bar with honours in 1973, he little expected that he would become one of Canada’s foremost experts in real estate and mort-gage law. It was a chance assignment at the onset of his professional life that set the stage for his specialized law career. Hired originally by a law fi rm to work in the areas of tax and estate planning, young Traub was almost immediately second-ed into the fi rm’s real estate division, when the fi rm was retained by the Province of Ontario to act on multiple acquisitions of real properties, for the purposes of creating green-banking in the municipalities of Pickering and Ajax, located east of the City of Toronto.
For the newly minted barrister and solicitor it became a “trial by fi re” with no time to waste and volumes of real estate law to absorb and master in a few short months. Recalling those days Traub says, “I was working until midnight every night and sometimes through the night to do what was required. Within the course of one year I probably learned more real estate law, than most prac-titioners learn in a lifetime of practice.”
Traub’s current partner Norman Goldman, a founding partner of Goldman Sloan Nash and Haber LLP, (GSNH), tells us that little has changed in that regard since those days, as he comments on Walter’s continuing long work hours and client-dedicated work ethic.
Having learned a lifetime of real estate law in a relatively short but concentrated span of time, placed Traub in an arena of legal specialization, long before special-ization was recognized by the legal profession in Canada, something Traub never anticipated or planned. Mostly as a result of that initial exposure, real estate and in particular mortgage law became and to date continue to be the focus of Traub’s practice.
“My initial somewhat traumatic immersion into real estate law may have been the impetus that directed my career path, but it was primarily the challenges and the creativity associated with working in the banking sector with mortgage lenders, that motivated me to continue specializing in that area of the law,” Traub says.
In 1976, while Traub was in his fourth year of practice, the law fi rm with which he was associated split, with each faction offering Traub a partnership. “The choice was a tough one” says Traub “I respected and enjoyed working with both groups, but in the end I opted for the opportunity of becoming one of the founding partners of the younger faction, which started as Gordon Traub and Rotenberg, and became Gordon Traub and Traub Moldaver in later years “. The fi rm became one of Ontario’s foremost real estate boutique law fi rms. At its prime the fi rm had 26 lawyers and 90 people on staff. Of the 26 lawyers, 16 lawyers were exclusively dedicated to all aspects of real estate secured lending.
Traub became one of the fi rst few lawyers in Ontario to be certifi ed by the Law Society of Upper Canada, (the governing body of the legal profession in the prov-ince of Ontario), as a Certifi ed Specialist in Real Estate Law, a certifi cation which to this date has only been granted to an elite few members of the Ontario Real Estate Bar.
Walter Traub, Senior Associate Partner
In 2007, after over 30 years of existence, the fi rm of Traub Moldaver dissolved. Although many fi rms showed interest in Traub, he and his loyal and dedicated staff chose to join the fi rm of Goldman Sloan Nash and Haber LLP, (GSNH) a known and respected Toronto real estate boutique law fi rm founded in 1976, not unlike Gordon Traub in its prime. Traub, now a Senior Associate Partner of GSNH, when asked about his choice of successor law fi rm smiled and said; “It was a relatively simple choice, almost a “déjà vue”. I felt comfortable and at home from the time of our fi rst meeting and the fi rm has exceptional talent in all facets of Real Es-tate and Commercial law, with strong commercial litigation support. All of this suited me and my cli-ents to a “T”.
As the leading expert on mortgage law, Traub has also been called upon to teach. In fact, his teaching career began shortly after he was called to the Bar of Ontario in 1973. Having graduated near the top of his class, Traub was asked to teach the Ontario Bar Admission Course, in the fi elds of Real Estate and Estate Planning and Administra-tion, before he had completed his fi rst year of practice. He continued to teach and lecture in the Real Estate section of the course for the next 15 years. Recalling the experience Traub says, “For a young lawyer, it was quite an honour.”
Throughout his career Traub has taught and writ-ten extensively on the subject of Real Estate and Mortgage law and has presented and chaired many special lectures and seminars for such institutions as the Canadian Bar Association, the Ontario Bar Association, the Law Society of Upper Canada, the Trust Companies Association and the Real Estate Institute. Some of his most recent writings include “Special Issues Related to Construction Mortgage Financing” and “Mortgage Remedies-Power of Sale”, which topics were presented by the Law Society of Upper Canada in 2006 and 2007. He is also fre-quently retained by other lawyers and law fi rms to provide expert opinions and to appear as an ex-pert witness before the courts. Traub has also been admited as a Fellow, to the American College of Mortgage Attorneys.
At Seneca College in Toronto, Traub taught the mortgage and lender liability course for seven years from 1996 to 2003. The course is a prerequisite for becoming a licensed mortgage broker in Ontario.
While Traub maintains that teaching is the best tool
for learning, he also expanded his own education, in obtaining an LL.M. (Master of Law) degree in Bank-ing and Financial Services Law, from the Osgoode Hall Law School of York University, in 1997.
While Traub has always enjoyed teaching, he sees it only as an adjunct to his practice. “My practice has always been full time, my teaching is part time,” he says.
As a writer, Traub’s real estate knowledge and expertise were put to the ultimate challenge in 1997, when he was asked to virtually rewrite Can-ada’s foremost publication on mortgage law, ‘Fal-conbridge on Mortgages’. Originally published in 1919 by professor Falconbridge of Osgoode Hall Law School, this publication covers all aspects of Canadian mortgage law. This book had not been revised since 1977 and to say it was in need of an update is an understatement. Much had changed in the laws since that time.
‘Falconbridge on Mortgages’ is published by Cana-da Law Book, which describes it as the most com-prehensive treatise and practical interpretation of Canadian mortgage law available. It includes expert commentary, detailed guidance, and practical anal-ysis aimed at quickly guiding the reader through even the most daunting aspects of modern Cana-dian mortgage law.
Traub assembled an editorial committee that in-cluded some of the fi nest lawyers practicing in the fi eld of real estate and mortgage law to assist in the revisions. The task took six years to complete. Traub now continues as Editor-in-Chief of the 1,200 page publication, which is updated on an annual basis.
As the publication’s editor in chief, Traub says the book is a great teaching tool for law schools and a vital continuing legal education resource for the legal profession.
Today, Traub’s practice at GSNH is devoted al-most exclusively to representing fi nancial institu-tions in all aspects of fi nancial transactions with an emphasis on mortgage and real estate secured lending. In addition, his practice also includes workouts, restructuring and bankruptcy and insolvency matters.
Over the course of Traub’s extensive experience in commercial and mortgage lending, Traub has worked with both lenders and borrowers to constructively workout insolvencies and default
Would like to congratulate our friend and valued directorWalter M. Traub
on his well deserved recognition by Profile Magazine and wish him continued success.
Quest Capital Corp.’s expertise is providing mortgages in the real estate sector. Quest’s objective is to becomeCanada’s largest Mortgage Investment Corporation in terms of equity, loans generated and profitability.
Quest’s strategy is to deploy its financial capital at superior rates of return while minimizing risk in the process. Thethree principles of Quest’s investing strategy are capital preservation, obtaining an attractive yield on lending activities
and profitable growth.
www.questcapcorp.com
matters. “My expertise, as it relates to mortgages and real estate fi nancing, lies at both ends of the spectrum; lending on one hand, and default reso-lution and restructuring, on the other. My experi-ence in each of these roles over three decades of boom and gloom, has enhanced my ability to act in the other role” he says.
“Mortgage law, to a large extent, is market proof. When commerce is booming I act for lenders implementing the big loans.” Over the years he has acted on some of the largest real estate purchase, sale and fi nancing transac-tions in Canada, involving shopping centers, condominium developments and hotels, and including amongst others the fi nancing of Ter-minal Three at Pearson International Airport . “When the going gets tough, I also have vast experience in remedying defaults and acting on restructurings and enforcement retainers.” says Traub.
In these troubled economic times, expertise, dedica-tion, practical approach, positive energy, and avail-ability to clients offered by the legal team at GSNH are invaluable assets to clients. The fi rm’s broad expertise in corporate law; real estate law; condo-minium law, commercial leasing, construction law and franchise law, supported by a 10-man strong experienced commercial litigation group, makes GSNH a formidable resource to clients for counsel, advice and representation in all legal retainers, in-cluding workouts and insolvency matters.
TEAM RESOLUTION provides neutral, third-party expertise aimed at resolving disputes outside of the courtroom in an equitable and cost effective man-ner. With decades of experience in the legal and corporate arenas, both nationally and internation-ally, members of this panel are most capable of pro-viding a wide range of dispute resolution services in various areas of the law. The panel prides itself on tailoring their services to meet the respective parties’ needs, objectives and expectations.
TEAM RESOLUTION, can arbitrate or mediate any aspect of commercial law, that would be adjudi-cated in the courts and offers a most viable, practi-cal and cost effective alternative forum for dispute resolution, for those who do not wish to subject themselves to the trauma, expense and protracted time-lines of the court process.
In a corporate executive capacity Traub also sits on the board of directors of Quest Capital Corporation, a public company headquartered in Vancouver and listed on the Toronto Stock Exchange, where he is the active Chairman of the company’s Credit Com-mittee and a member of the company’s Governance Committee and Compensation Committee.
Quest Capital Corporation is the only publically traded Mortgage Investment Corporation in Can-ada. Its primary business is the fi nancing of real estate projects intended for residential purposes, such as condominium developments, apartment buildings and single-family housing projects. Quest is currently in the process of obtaining bank status as a deposit taking institution.
In his family life, Traub and his wife Sara will cel-ebrate their 40th wedding anniversary later this year. Sara is an accomplished teacher and writer in the fi elds of Esoteric Psychology and Astrology. Traub’s greatest pride and joy are his daughters, Alexia and Danielle, who are well on their way to achieving success in their own careers. Alexia is a Human Resources Consultant having obtained her
BA (Bachelor of Arts) degree from the University of Western Ontario and Danielle is currently articling after having graduated from the University of West-ern Ontario with an LLB (Bachelor of laws) degree and an MBA (Master of Business Administration) de-gree from the Richard Ivey School of Business.
Traub is also a member of an arbitration and mediation panel operating under the name “TEAM RESOLUTION”, which is an adjunct to GSNH and operates from the fi rm’s premises. The team consists of fi ve very experienced and highly regarded counsel, each of whom has been published in his own respective area of expertise, which include construction law, real estate law, mortgage law, and commercial leasing.
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A neutral, equitable tribunal, with decades of national and international experience in commercial law arenas, offering cost effective dispute resolution expertise, dedicated to meet the parties’needs, objectives and expectations and to bridge and resolve differences.
An alternative forum for dispute resolution qualifi ed to arbitrate or mediate issues, devoid of trauma, expense and protracted time-lines of the court process.
David I, BristowQ.C., LSM, B.A. LL.B., C.Arb.
T | 416.597.3395
W | www.davidibristow.com
Stanley NaftolinJ.D., Q.C.
T | 416.597.3388
W | www.gsnh.com
Harvey M. HaberQ.C., LSM, CSA, B.A.,
LL.B., C. Med.
T | 416.597.3392
W | www.gsnh.com
Walter M. TraubB.A., LL.B., LL.M., R.E.S.
T | 416.597.3378
W | www.gsnh.com
Stephen TatrallyayB.A.(Hons),LL.B.
T | 416.482.5164
W | www.gsnh.com
Team Resolution | 480 university avenue | Suite 1600 |Toronto, ONTARIO | CANADA | M5G 1V6
T: 416.597.9922 | F: 416.597.3370
TEAM resolutionARBITRATORS | MEDIATORS
TEAM resolutionARBITRATORS | MEDIATORS
Michael Stoyan, Partner
22 | Accounting
Our Goal: Increasing the Value of Your Business
At Fuller Landau, protecting and enhancing the value of your real estate business is only part of the picture; realizing its value and thereby increasing your personal net worth is the other side.
With 60 years of experience, Fuller Landau combines the know-how, talent and depth of a national large fi rm, with the personalized service of a local mid-sized fi rm. The company has combined this personal approach with a level of service that is both well known and respected in the business community.
For real estate investors and building owner-managers, Fuller Landau has created a unique and distinctive business unit that looks at real estate investment from a unique perspective.
The company’s real estate group, headed up by Michael Stoyan, a Partner at Fuller Landau, is based on the premise that, protecting and enhancing the value of your real estate portfolio is only one side of the coin; realizing its (one day) value and thereby increasing your personal net worth is the other side.
For real estate clients, that means leveraging the knowledge of the company’s nine partners and over 70 professional staff. “We are more than accountants. Our clients rely on us to deliver strategic advice in many areas of their business,” says Stoyan.
The benefi ts that Fuller Landau offers its clients can best be summed up in the fi rm’s Raison d’Etre, a full service model that offers clients the opportunity to align business and personal wealth with the end goal of increasing net worth.
Fuller Landau’s Raison d’Etre, or full service offering to the customer, is “What differentiates this fi rm. We have a succinct and clear vision of how we approach the marketplace,” notes Stoyan.
As Managing Partner, Michael Epstein explains, some individuals have vast personal holdings, but most owners of privately owned companies have the largest share of their personal assets in a business they have been running all of their lives.
“They have put all their attention, energy and resources into their business and all of their assets, or the lion’s share of it, are tied up in that business,” says Epstein. The Fuller Landau team shows clients ways to realize the value of the business asset, while minimizing the tax burden when the assets are sold or passed on to another generation.
As Fuller Landau’s Managing Partner, Epstein steers the fi rm and is dedicated to building an award winning team that fosters an environment whereby each professional can achieve their personal potential. The essence of his role from a client perspective is ensuring a progressive culture built on a fantastic team of people focused on increasing the personal net worth for clients. This objective is facilitated by gaining a thorough understanding of personal and business fi nancial situations and how these two areas become aligned in the future.
In addition to Stoyan, the Fuller Landau Real Estate team includes Brian Joffe, a Partner in the fi rm who specializes in assurance services and Vic Malik, the company’s Assurance Manager. Jonas Cohen, Vice-President, Fuller Landau Consulting Ltd. offers counsel on mergers and ac-quisitions, corporate fi nance and due diligence engagements. Rounding out the team is Brenda Hajdu, the fi rm’s Director of Marketing.
One of the issues facing many business owners is they build up their business to a multi-million dollar valuation, however, when they exit or sell the business, they have a huge residual cash po-sition that they are not accustomed to dealing with. “There’s a big difference between being told your business is worth $50 million and actually exiting and turning $50 million in to cash,” says Stoyan. That’s why Fuller Landau works with its clients for years to develop personal and business fi nancial planning tactics.
On the personal side, Fuller Landau has a knowledgeable team that can help individuals maximize their personal tax planning and compliance issues and advise on wealth manage-
ment and investment strategies. For tax planning, Fuller Landau works to make sure a client’s personal tax returns are done correctly and complies with all fi ling require-ments. Under the Fuller Landau Raison d’Etre, a client’s personal tax situation is treated as importantly as their corporate tax return. In fact, the tax planning of personal and corporate goes hand-in-hand.
The personal wealth management group of the fi rm helps clients with wealth related items such as wills, retirement savings and balancing investment portfolios. “For someone with a high net worth,” says Stoyan, “We are helping them on a personal level to manage their savings and invest their money consistent with their objectives and risk appetite.”
The business side of the Fuller Landau Raison d’Etre includes traditional compliance areas of assurance, tax planning and non traditional areas such as protecting and enhancing business value such as valuations, restructuring, corporate fi nance, and mergers and acquisitions.
Assurance and tax planning are the foundation of the service that Fuller Landau offers its real estate clients. Assurance, which includes audited fi nancial statements, is aimed at both the client and external users such as banks and other lenders, who rely on the validity and accuracy of Fuller Landau’s fi nancial statements.
“Someone is placing reliance that you have carried out your auditor responsibilities in accordance with standards such as Generally Accepted Accounting Principles (GAAP) and General Accepted Auditing Standards (GAAS),” says Stoyan. For the real estate sector, GAAP standards and principles are governed by the Realpac Accounting Standards Handbook issued by the Real Property Association of Canada.
Enhancing and protecting business values is another area where Fuller Landau differentiates itself from the competition. The fi rm has a team of professionals who can handle mergers and acquisitions, or help your business raise capital in these diffi cult times.
And, in these diffi cult times businesses may need to look at restructuring. The Fuller Landau team can offer expert advice to real estate owners and lenders on how to deal with cash crunch issues before they threaten the stability of the business.
“We work with numerous lending institutions including banks and non traditional lenders, especially in a tight market,” says Stoyan, adding that since the fi rm has worked with many capital sponsors of both debt and equity, the fi rm has the experience to understand the investors’ and lenders’ viewpoints.
While the Fuller Landau team offers a huge slate of in-house services, it is not always practical to hire your own experts. One such example is real estate valuations, where the com-pany retains the services of the Altus Group, a company that specializes in the valuation of premier real estate properties and portfolios. Altus is Canada’s largest independent national real estate valuation and research organization.
Appraisals are a very particular type of service and one where Fuller Landau looks to form strategic partnerships with companies like Altus. Accurate and precise valuations help companies to both value their business and settle share-
holder disputes should they arise. “This is how we market our services. We don’t go solo with one particular service. We have a wide and deep service offering—a suite of services that is built around the business owner’s needs.”
Once a client’s personal and business fi nancial situation is put together it helps them to realize value and formulate suc-cession or exit strategies. At some point an individual owner, entrepreneur, or owner manger, has to monetize or sell their business. That requires a properly formulated exit strategy.
“As business advisors we are cognizant that at some point the owner will have to sell his investment or pass it on to the next generation,” says Stoyan.
That requires tax planning and a business structure that will allow for either a profi table sale of the business to a new owner, or a business structure that will allow you to grace-fully leave the scene and allow your partners or family mem-bers to continue the business without burdening it with debt-deferred taxes.
Stoyan’s knowledge of the real estate sector comes from direct experience in the industry and as a public accountant with a focus on real estate including aspects of development and related fi nancing.
“Within the real estate business the sectors are very distinct,” he says. “Developers take on a tremendous amount of risk with every project. First they must acquire the land, then they have to arrange construction fi nancing, and fi nally they have to sell or lease and hold the property. On the other side, there are investors who are interested in stable income producing properties like multi-residen-tial apartment buildings or commercial properties. Each has a different risk profi le and unique returns.”
“A developer absorbs all the risks from land cost to con-struction risk. I have clients who say, ‘I love the idea of real estate development but would never take on that kind of risk.’ They buy real estate, but what they buy is already built,” comments Stoyan.
The Fuller Landau team has the experience to understand the development industry and the unique risks associated with it and understand investors who prefer to buy stable properties with more predictable cash fl ow streams.
“Some investors want proven multi-residential because they understand the consumer housing market demand and are very good at understanding the renting versus buying inter-relationship,” he says.
As we enter a new year, it is important to refl ect back on the extraordinary business climate generated by 2008. Fuller Lan-dau truly understands the exceptional challenges businesses are currently facing. More importantly, they take the time to ensure their clients are positioned to embrace the new mar-ketplace and help them identify areas for growth and to ulti-mately secure enhanced stability.
Market intelligence. International expansion. Industry leadership.
[email protected] altusgroup.com
Altus Group is the leading multidisciplinary provider of independent real estate consulting and professional advisory services worldwide. With a staff of over 1,300, Altus Group has a national network of 34 offices in 24 cities throughout Canada, 8 offices throughout the UK and 1 office in the U.S.
Continuous investment in our people, our tools and our process. We call it real estate consulting – redefined.
OUR FOUR PRIMARY AREAS OF EXPERTISE INCLUDE:
RESEARCH,
VALUATION AND
ADVISORY
REALTY TAX
CONSULTING
COST CONSULTING
AND DEVELOPMENT
COST MANAGEMENT
GEOMATICS
26 | Insurance
Andy Schwartze, Principal
“Take Cover” insurance program is reliable protection
For many property owners, and their managers, fi nding the right combination of insurance and risk management advice is not that easy. Most property/casualty insurance profession-als spend large amounts of their time on a variety of client needs; from auto and home to small business as well as peculiar specialty insurance needs that happen along from time to time. Andy Schwartze is the founder of IMS Insurance Marketing Services Ltd., and has made a career out of providing insurance and risk management support to the property management industry and its building owner clients. This support spans the many different types of buildings, being condominium corporations, offi ce buildings, as well as shopping centers, strip plazas, residential apartments and single use buildings. In order to concen-trate on client service, Schwartze hooked up with Nacora Insurance Brokers Ltd., a large international insurance brokerage and off loaded his “back offi ce” management so as to be able to concentrate on his clients.
“The merger with Nacora has been an exceptional success”, says Schwartze. “They are a large international fi rm, with offi ces in 30 countries. They do the boring stuff for me (like collecting premiums and paying insurance companies) and I get to do the fun stuff. It’s an exceptional partnership for me, and their Canadian boss, David Schleifer, and I are well suited to being partnered”.
Schwartze, who has an MBA in Commercial Law and Organizational Behaviour, from Syracuse University in New York State, initially spent time learning the ropes in a family fi rm. During that time he earned a CIP designation from the Insurance Institute of Canada, after which he joined the ranks of the industry’s teaching group, with assignments at George Brown and Seneca Colleges, as well as the Ontario Insurance Institute’s own school. Following 10 years of active duty on the Ontario Institute’s board of directors, he became its president. Subsequently, he became an authorized provider of continuing insurance credit seminars for other brokers; seminars intended to expand other brokers’ understand-ing of the world of real estate.
Up until the 1980’s the whole realm of commercial real estate insurance was completely undisciplined. “I remember large building insurance policies that only insured against fi re and a couple of other innocuous things, like impact by aircraft and sprinkler leakage”, says Schwartze. “In those days, neither building owner nor mortgage lender saw insurance as a big issue. I used to insure buildings that didn’t even carry liability insurance….the owner would say it wasn’t needed”. Times have certainly changed.
It’s hard to say what catapulted insurance and risk management into prominence in the ear-ly 1980’s. Schwartze suggests it was a confl uence of escalating values driven by the arrival of the baby boomers on the business scene. With that came more educated owners and lenders, not to mention their lawyers and accountants. The sudden expansion of Canada’s big city immigrant base, and the never ending catching up to the U.S., in matters of litiga-tion, simply fueled the need to pay more attention to insurance and its related topics.
“Suddenly I started having clients send me leases to comment on”, remembers Schwartze”. I had no idea what to do with them, but I quickly learned that lawyers don’t study insurance
and that lenders “own” the lion’s share of any real es-tate deal.” With a typical 75% mortgage, the lenders started to insist on being protected. The 1980’s saw the birth of the “insurance consultant”, who’s client is the lender and who started the trend of developing insurance requirements.
From that first insurance program, was born to-day’s “Take Cover” program. In the early 1990’s Torontonians woke up one morning to the news of a nasty apartment fire in the north end. Even-tually, smoke overcame some tenants in the stair-wells and they died. “The days that followed were unbelievable”, recalls Schwartze. “Here you had a landlord, and his property manager, trying to deal with seriously upset tenants, not to mention all of the municipal agency and city staff that descended on the place. In addition, the place was closed and cash flow dried up, at least until tenants could be allowed back in”. In the following months it was determined that the insurance on the property was woefully deficient. “Of all the costs incurred, only about 1/3 were actually covered by the insur-ance. Fortunately, my client was only the property management company. The building was insured elsewhere”.
The basis for the present “Take Cover” program used this particular claims experience as its cornerstone. Started in 1999, this trademark program now insures about 400 commercial and condominium properties in Ontario.
Currently, two large insurance brokers, one of them located in Alberta, are also interested in taking it on. Backed by Sovereign General Insurance Company, the “Take Cover” program has signifi cant capacity and can handle even the largest of properties. It is completely lender approved and does not resemble anything like the typical “off the shelf” insurance package. “Sovereign and I are great partners”, says Schwartze. “Their man-ager, Dave Broadhurst, and I have become solid busi-
ness friends and over the years we have never once had to raise our voices. That kind of partnership delivers to my clients, especially when combined with the excep-tional ‘slip and fall’ claims experience that our adjuster, Don Georgevitch, brings to the table.”
Claims handling is a big issue in commercial real estate. “Most insurers handle these in-house”, says Schwartze. “The whole slip and fall part of our business is a huge problem for us, if handled in-correctly. We are constantly facing claims that have no basis. Insurance companies are not liked when they appear in court and lawyers and their clients are tempted to take advantage of that. Our clients get charged for their claims experience, so I have one of the best adjusters in the business working for “Take Cover”. No lawyer has met his match until he’s run up against Don. It helps keeps premiums down where they belong”.
Schwartze currently maintains his small (“boutique offi ce”, as he calls it) in the Port Credit area of Mis-sissauga. He is the very proud father of 3 grown sons, Michael, Stephen and Richard, by his fi rst mar-riage (“Don’t work with me”, he’s told them, “get a real job”). Recently remarried, he and his lovely wife Doreen (and her 2 children Jayne and Gareth) make their home in Collingwood (“The best skiing in Ontario and the best fresh water boating on the planet”, according to Schwartze).
It was this emerging profession that got Schwartze into the business of being an “underwriting agent”. “While other brokers were complaining bitterly about these consultants, I concluded that they were here to stay. So I gathered up a couple of insurers and convinced them that we needed to cater to the lender’s insurance consultant by developing an insurance program that would deliver the right documentation the fi rst time”. It worked like a charm. Insurance consultants got what they wanted for their lender clients and the building owners were suddenly forced to properly insure their buildings (not without the odd outbreak of indignation, however).
NTTFEw
Fco
Nacora is an independent brokerage which deals with Canadian licensedinsurers.
We have been offering a wide range of insurance services both inCanada and internationally since 1970. Our success has been built oncustomer service and relationships.
Tailored solutions to meet your requirement with the right answers to allyour insurance needs with safety and security - wherever you are.
Our portfolio includes:Risk Management, On-site Inspections and Contract Reviews
As part of our commitment to customer service we have expertisein the following specialty areas:
Property Insurance for buildings, equipment, inventory
Casualty Insurance, General Liability
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Crime, Employee Dishonesty
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Products Liability Insurance
Environmental Impairment Liability
Ocean Marine Cargo and Hulls, Aviation
Fidelity and Surety Bonds
Performance and Constructions Bonds
Computer Coverage
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Credit Insurance
Kidnap and Ransom
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Nacora Insurance Brokers
Nacora Insurance Brokers Ltd.Toll free: 1-800-761-4938 Tel: 905-405-8827 Fax: 905-677-6380Email:[email protected]
For further inquiries, pleasecontact our office at:
Deni Poletti, Principal
30 | Architecture
Core ValuesFormed in 1994, Core Architects Inc. has risen to the top of Toronto’s architectural and design community. From this lofty position, CORE’s partners have managed to impact the look and feel of not only their hometown’s streetscape, but the skylines of Montreal, Ottawa and cities around the globe.
CCorporate/commercial
Real estate/leasing
Litigation
Construction
mortgage & Commercial Lending
Information Technology
Franchise
Goldman Sloan Nash & Haber LLP
Barristers & Solicitors
EXPERIENCE DETERMINATION INTEGRITY
We are always at and on your side.
480 University Avenue | Suite 1600 | Toronto,480 University Avenue | Suite 1600 | Toronto,
Ontario | M5G 1V6 | CanadaOntario | M5G 1V6 | Canada
T: 416.597.9922 | F: 416.597.3370T: 416.597.9922 | F: 416.597.3370
www.gsnh.comwww.gsnh.com
We have the power to lead,
the wisdom to guide and advise,
the expertise that can be relied upon
and the dedication and commitment to fully and
cost effectively represent and serve your
legal needs.
A downtown Toronto boutique law firm with a variety of high level expertise, built on integrity, creativity and dedication to client service.
Indeed, from their converted industrial offi ce space in downtown Toronto, CORE’s founding partners, Deni Poletti, Babak Eslahjou and Charles Gane continue, as they have collectively for more than a decade, to create structures in an architectural style and language uniquely their own.
Prior to opening CORE in 1994 the partners met in the early 1980’s when all three were working at the fi rm of Zeidler Roberts, now known as Zeidler Partnership Architects, where, according to Deni Poletti, “Zeidler’s af-forded Babak, Charles and me the opportunity to work on major projects in a world-wide setting. This international exposure helped shape our architectural perspectives both during our time at Zeidlers, and, certainly, as we left to form independent practices.”
After a brief time apart, Poletti, Eslahjou and Gane ultimately reconnected in the early 1990’s and formed CORE, a name which refl ects “our shared commitment to design principles,” says Poletti. He goes on to add that rather than naming the fi rm “after ourselves, we selected a brand that was refl ective of our beliefs… our core beliefs.”
Those beliefs include a shared reverence for architecture from a sustainable and environmentally-friendly founda-tion, and a passion for design from a modern perspective. It also includes a love of a city’s urban core.
“We’re much more in tune with urban rhythms than with a suburban score,” says Poletti, who boasts that even as the fi rm has grown through the years, adding an interior design division in 2002, they have always remained in the same building at Peter and Adeleaide streets, in downtown Toronto.
International ProjectsWell known for their commercial and residential work throughout Canada’s urban centres, CORE has quickly developed an international reputation.
“It was our intention from day one to create a practice that was diversifi ed in the type of project and in the location of those projects,” says Poletti. The company’s global projects have run the gamut, including designs for custom homes, high rise condominiums, restaurants, theatres and banks on the world stage. Ironically, some of the fi rm’s earliest international commissions were the result of local connections.
For example, in 2000 CORE was designing a multi-residen-tial project along the Toronto waterfront for Concord Adex, when some key Concord Adex executives moved to the Middle East. Shortly after relocating, they called back to Canada and their contacts at CORE with an offer to work on a master plan residential development project in Dubai, part of the United Arab Emirates. The community, called Dubai Marina, included everything from single-family villas to high-rise and mid-rise multi-residential buildings
Around the same time, says Poletti, the Middle East, and in particular Dubai, was experiencing a massive residential
construction boom. “Fortunately, our work was well recog-nized and we received several local commissions, including the task of designing the fl agship location of Dubai Bank, in the UAE,” adds Poletti.
Today CORE continues to work in Dubai as well as in Turkey and the Caribbean where the company has designed several hotel and resort projects, while creating residential and commercial projects back in North America.
To date, Core has designed more than 50 multi-residential and condominium projects in Toronto, as well as many retail, institutional and hospitality projects, although Poletti estimates that about 65 per cent of Core’s work is residential design.
The remaining proportion of its portfolio includes assignments for its burgeoning retail design practice. Among its retails clients, CORE has worked on innovative, functional and modern environments for such well known brands as Lacoste, MAC Cosmetics and Porsche.
CORE was recently named the Regional Architect for Canada, by Porsche AG and Porsche Canada. The assign-ment calls for the fi rm to oversee the development and execution of design standards for Porsche’s existing Canadian automotive dealerships and future locations.
Environmentally FriendlyWhile CORE was formed more than a decade ago with a commitment to sustainable development, it is only recently that the fi rm’s prescient desire for environ-mentally-sensitive architecture has become an asset demanded overwhelmingly by clients.
“It’s something that we have always been interested in, and now we have clients who not only recognize the need for sustainability in their designs, but are demanding it. Clients, and end-users, are becoming more conscious of the natural environment and are demanding more of their physical environments,” says Poletti, adding, “I don’t believe there is any new project we are working currently that is not sustainable.”
The score card used to measure sustainable design is the Leadership in Energy and Environmental Design or the LEED green building rating system. The LEED program provides standards which judge a building’s design and performance in terms of components such as energy us-age, energy saving mechanical systems and the use of sus-tainable materials. Depending on the design and the mate-rials used a building can achieve one of four LEED ratings: Certifi ed, Silver, Gold and the highest rating, Platinum.
CORE currently boasts fi ve projects that are being con-structed under the LEED program including Regent Park Block 12, part of a massive City of Toronto public housing redevelopment. In addition, several other Toronto condo-minium projects such as M5V, Five Hundred Wellington West, Fashion House and Six50 King West are being built to the very demanding LEED standards.
Modern DesignOver the years CORE has grown to a point where it now employees 32 people, “a number we are very comfortable with,” says Poletti. “Big enough to pursue any project of any size, we’re small enough to ensure that once we are awarded a commission the work is fl awless.”
Considered a “midsized” fi rm, CORE’s position in the market belies the trend towards agency mergers and the resulting architectural super-agencies. “We don’t believe the need exists for us to grow upwards of a thousand employees, despite the trends,” says Deni Poletti. “There is clearly a market for smaller fi rms doing big work and we’re proud to fi ll that niche.”
Poletti goes on to say that for him, and his partners, noth-ing else but the work matters, pointing to the Firm’s reputation for innovative, modern design.
“We are resolute modernists,” says Poletti. “Our training and education has always been with modern architecture. That holds true for me and my two partners. We have the same philosophy and the same goals in terms of where we want our buildings to be positioned.”
While Modernism has its detractors, Poletti believes that the movement is gaining more supporters, especially in Toronto. “I think you can see from what’s happening in the city, there are a lot of interesting projects that are being built in the language of Modernism.”
He believes some of the trend toward Modern architectural design is due to a change in the attitudes of building own-ers both in Toronto and in many other parts of the world. “I think Toronto is certainly embracing modernism. More and
more we fi nd people are expecting that kind of design.” And for those who may not appreciate Modern design, he says bluntly, “Then we are not the fi rm for them.”
Interior DesignAlthough the company is primarily an architectural fi rm, seven years ago the decision was made to launch an interior design division. With a roster of shared and independent clients, the interior design department has quickly established a strong signature brand and its work has received several local and international awards.
Together with the architectural responsiblities, CORE’s interior design division has been responsible for designing lobby spaces and other public spaces in several condominium projects and institutional projects. Among the list of collaborative projects is the, Harbour View Estates SuperClub, a 30,000-square foot recreational and fi tness facility located near the foot of Spadina Ave. in Toronto. Another is the celebrated Cosmopolitan Toronto hotel, located on Colborne Street in Toronto.
Success at its COREWith a fi rm understanding of who it is and what it wants to accomplish, CORE Architects, under the direction of its founding partners Deni Poletti, Babak Eslahjou and Charles Gane is bringing a modern sensibility to residential and commercial assignments around the world… and the results are renewed and redefi ned global urban landscapes, forever changed, to their CORE.
Fuller Landau LLp IFC
Pelican Woodcliff Inc. 5
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Gottarent 9
Verdiroc Development Corporation 11
H & R Construction & Management 15
Quest Capital Corp. 19
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Altus Group 25
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GSNH 31
IMS Insurance 33
First National IBC
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