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October 12, 2006

Condos in Disguise

Stacked townhomes offer all the benefits of condo ownership in single-family style packaging

Natasha Evdokimoff

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You’ve seen them – but chances are, you don’t know it. Stacked townhomes are the stealth bombers of the residential world, blending seamlessly into the landscape, masquerading as luxury estate homes in suburban communities all over the city.

Most are so cleverly designed and expertly interfaced with the landscape and surrounding residences that at first glance, their status as multi-family developments is virtually imperceptible. If you aren’t actually seeking one out, it’s more than likely you’d drive right by.

“Traditional style townhomes are side-by-side,” explains Ron Poon, Principal, Poon McKenzie Architects. “They have party walls on either side. Stacked townhomes, by contrast, are an evolved version of this concept. They’re designed one on top of the other. You don’t have the shared or common areas in a stacked townhome that you find in highrise or apartment style condos – there are no lobbies or corridors – every owner has a private garage and entryway. It’s a very efficient design in terms of land use and the type of lifestyle offered there.”

Stacked townhome developments typically feature four or six units per building in either a two above two or four above two layout. Buyers are usually overwhelmingly single women – to the tune of 70 per cent. “This type of design appeals to women for a number of different reasons,” says Poon. “Perceived security is a big attraction, because each unit has its own garage. You avoid having to park in an underground parkade and then walk to an elevator to get up to your suite. Women also typically buy second floor units, which further enhances their sense of security. It’s an extremely popular choice for this demographic. If you’re a single guy, you should consider buying one!”

Empty nesters are another buyer drawn to stacked townhomes, lured by the appeal of a “lock it and leave it” lifestyle and the ability to downsize without having to leave the communities they’ve grown to love. “These developments are most often seen in the suburbs in places where people have lived for years,” explains Poon. “A lot of people want to maintain a sense of single-family living in those communities, but want the freedom to travel and not worry about maintaining a yard. A stacked townhome is a good solution.” Retirees, generally speaking, go for ground level units, which offer basements that can be developed to accommodate guests (a.k.a. visits by the grandkids) in addition to providing extra storage space.

While the popularity of stacked townhomes has remained relatively constant over the years, the reason behind their continued development has changed. “Developers used to request this type of design as a type of hybrid – a way to satisfy community groups that were opposed to apartment style condos being built in their neighbourhoods.” Poon says. “They were viewed as acceptable when apartment style wasn’t.”

Today, the demand for stacked townhomes is driven by lifestyle choices and ever-escalating land prices. “Stacked townhomes are being built out of simple affordability in higher end neighbourhoods,” says Poon. “It’s a density/price ratio: the more units per acre, the lower the cost. If you built traditional side-by-side townhomes on land that’s worth tens of thousands of dollars per acre, you’d have units priced at $350,000. That may become unsuitable to the target market.”

In addition to a lower entry price, stacked townhomes can potentially charge lower condo fees than their apartment style counterparts, thanks to the elimination of extras such as elevators, hallways and other common areas. “These things all have to be maintained and heated, so the fees per unit have to be higher.” explains Poon.

Developers, always interested in producing attractive products with minimal upfront cost, view stacked townhomes as a good option. Unlike apartment style developments that have to be sold and built all at once, individual stacked townhome clusters can be constructed one at a time, demanding a far smaller upfront investment and hence, reduced risk. “This makes sense in a market where prices for materials are constantly going up and labour is in short supply,” says Poon. “You can sell six units and have them finished in a relatively short duration, leaving a chance to regroup pricing and construction budgets prior to building the next cluster of units.”

The biggest challenge in creating stacked townhomes is, in fact, coming up with the design. With an interlocking group of units, garages and stairwells to incorporate, it’s none too easy a task. Floorplan drawings can sometimes be more confusing to buyers than they are helpful. “We’ve done it all when it comes to marketing this type of product,” Poon says. “We had an enormous take apart scaled models done for our developer clients, development, and even that doesn’t make the design one hundred percent clear to many interested buyers. The combination of how things fit together is like a big Rubik’s Cube. It can produce what appears on paper to be an awkward layout, but once you’re actually inside you see immediately how it all works. We encourage developers to finish at least one building for selling purposes just for this reason.“   CL

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