Plans for the second phase of a waterfront condo development in Sault Ste. Marie have been put on hold indefinitely.
“It’s primarily the economy,” said Toronto-based developer Amit Sofer, speaking to SooToday Wednesday.
Sofer's firm, TVM Group, bought 20 acres of waterfront property from Sault Area Hospital (SAH) in 2013 for $65,000, much lower than SAH's original asking price of $4.9 million.
The property included former hospital buildings, with additional land set aside for parking and future development under the banner Riverwalk Condominiums.
The first phase of the development is now open, and 37 of the 40 units are occupied. Selling for Phase 2 had been underway since last fall.
“We haven’t been as successful as we hoped to be with respect to our sales (for Phase 2),” Sofer said. “They’ve been softer than we thought, and we don’t want to continue to not be clear with our delivery dates…we’ve decided to set it aside for a bit.”
TVM had hoped to build 59 condo units for Phase 2. Sofer said 25 buyers had put down deposits for those units, but all deposit funds have been returned.
The developer said that in October 2016, marketing for Riverwalk Condominiums Phase 2 units was low-key as TVM struggled with various challenges to open Phase 1.
But Sofer said TVM is retaining ownership of the former SAH General site.
“We’re not running away,” he said.
“Phase 1 took a lot longer than I thought, so that added to my decision to defer Phase 2, he added.
“We’re going to take a little bit of time and regroup and wait for the right time and market conditions and come back with Phase 2, and follow that with phases three, four and five (which would include redevelopment of the old SAH General site and land south of Phase 1, close to the waterfront).”
“We still own a lot of land there…we’re not leaving,” Sofer said, adding TVM is entertaining different ideas regarding redevelopment of the remaining Riverwalk property.
Riverwalk’s sales office in downtown Sault Ste. Marie “will be closing shortly,” Sofer said.
Anyone interested in purchasing one of the three remaining Phase 1 units for sale may contact Regent Management Services at 705-949-4085, Sofer said, or by email at info@theriverwalk.ca.
“It’s genuinely been a pleasure to do business up there (in Sault Ste. Marie)…there have been some difficult times and some easier times,” Sofer said.
“In the long run, we are vested at that site and I know the knee-jerk reaction is ‘Oh yeah, they’re taking off,’ but we’re the first outside developer in a very long time to actually finish something in Sault Ste. Marie and we will continue to be that developer. Anything I start will get finished no matter what,” Sofer stated.
