GreyBrook logotype
Investor Login Contact Us

TORONTO STAR ARTICLE – INDUSTRY PROFILE: PETER POLITIS OF GREYBROOK REALTY PARTNERS

Date:
January 29, 2013
Share:

We love our behind-the-scenes views of the real estate industry. We talk a lot about the developments planned for Toronto, but one thing that we rarely focus on is the financing aspect of the projects. Without proper financing, developments are impossible.

Enter Peter Politis and Greybrook Realty Partners. Peter is a pretty popular guy with developers: he arranges private financing to build the towers we call home.  We sat down with Peter and learned more about his role in the industry and how he works with his clients, as well as his thoughts on the Toronto real estate scene.

NewInHomes (NIH): How did you get involved with real estate? What brought you to Greybrook?

Peter Politis (PP): I’m actually the only person in my family who’s not a real estate agent. Real estate has always been in my blood. My dad, my brother, my sister are all involved in the sales side of real estate. My dad’s been an agent since the late ‘70s, and they run one of the busiest residential teams in all of Toronto.

I did finance in school, which was always the route that I wanted to take. I met my partner at Greybrook Elias – he was the chairman at TLC. I was involved in a spin-off company at the time, but Elias offered me the opportunity to join him in a new venture. That was 10 years ago. We started the real estate division, and it seemed like a perfect fit for me.

I’ve always wanted to focus on the development side, and that’s really what Greybrook does; we are an exempt market dealer, so we are licenced under the Ontario Securities Commission. Essentially, we allow individuals to get developer-like returns on their money, without having to put out the same risk that a developer has. We work with top development firms such as Tribute Communities, Fernbrook Homes, Cityzen, Empire Communities, Plazacorp, and we have active projects with them. What we do is aid them in the financing of the projects. They spend their time finding top projects, they present the project to Greybrook and we decide if we want to be partners on the project. I don’t know any other groups that do what we do, taking individual investment groups and partner them with builders and developers.

NIH: We hear about purchasing condominiums as an investment, but rarely about people helping finance projects.

PP: Our investors range from athletes to school teachers, all whom contribute a varying level of capital. Developers come to us and request a certain amount of dollars, so we put up a portion of the money with them. They can never ask our investors for any more money under any circumstances; all the construction loan guarantees are handled by the developer. We just split the profits 50/50 in the end. Our investors are happy — the returns that we are getting are phenomenal.

NIH: Why do they invest this way? Why not the stock market?

PP: Real estate has leverage that no other asset class can really use. When we are done in Liberty Village (King West Condominiums by PlazaCorp) we will have sold $530 million worth of real estate just in these four towers, and we use a $31 million equity investment to do all that. There is no other industry that we can do that in. The banks give us the loan that covers over 70 percent to build the building. Everyone is happy when it’s done. You have the best real estate developers going to work for our investors every day. Real estate is a long-term asset. You buy, you hold, you sell, some never buy anything. We are just involved in the manufacturing process: we buy, we build and we sell. We don’t have a long-term exposure to any particular development.

It’s always been an interesting balance between investments and real estate. What I come back to all the time is that someone will always need to find a place to rest their head. Not everyone needs a fancy car, not everyone needs a big TV, but everyone needs a place to live. With people getting married so much later, there are a lot of single people in the market.

I don’t believe there is a bubble of any sort. I work in the industry every day. I spend a lot of time with banks, consultants, developers, and there is way too much demand for this type of product right now. Any slowdown or any perceived slowdown that we see is simply a result of the market taking a breath.

NIH: What are some of your other thoughts on our market? What do the numbers say?

PP: We are probably in the best residential real estate market in the world. I get a real kick out of newspapers and media members talking about an impending crash. Our job is to evaluate projects on an independent basis. We always look at projects under the current market conditions. It’s always real time. People spend a lot of time talking about the decrease in sales in 2012. We sold 28,000 (units) in 2011, so we have to expect a significant decrease. That year we sold the most condos ever by over 30 percent. So if we do have a 30 percent decrease in sales, that’s still one of the best years in Toronto’s history. To me, sales don’t give you a picture on the whole market. We also had a lot fewer projects come to the marketplace in 2012. The absorption rate has not meaningfully changed in the last eight or nine years. You also have to look at the vacancy rates, which is at or below 1 percent in the GTA right now. The rental market is so tight right now. The demand for rental properties is significant.

NIH: What’s one project in which you’ve enjoyed being involved?

PP: We have done a multitude of projects thus far and I’ve loved being a part of all of them. Our work in Liberty Village sticks out because it was financially successful for all involved. I have a lot of pride in what we did here. We closed the sales centre in 2008 because no one was buying, the market stalled for a bit. I had investors call me, worried about their investments because their stock portfolio fell 50 percent. We had a lot of tense customers and worried investors because of the hype in the media at the time, but the project at the end of the day was widely successful, which gives you a look at why real estate is such a safe investment. Even through tumultuous times, you can still receive extremely high returns. We stayed strong while other industries faltered.

We also did a small project by Stafford Homes at Victoria Park and Eglinton that I’m fond of. The returns were fantastic, but what truly stands out is the value that the development brought to the area. It’s off O’Connor, which has its rough patches. We turned an industrial complex into a townhome development that saw great value. It’s proof that our system works in any part of the city, not just in the high profile downtown development sites.

NIH: What type of projects do you envision being successful moving forward?

PP: Low-rise will always be popular just because of the demand, but finding land and keeping it affordable will always be a challenge. There was a project on Manning, an old school; you’re getting a townhome for upwards of a million dollars. There was another project on Ossington and Shaw that offered upwards of $1-2 million for homes. That will be viable for a select group of people, but not everyone. The projects that will appeal to everyone are the $500 to $600 per square foot projects that offer value. It’s not always location; it’s also about developers. Based on our history, we have seen that the most successful projects in Toronto are the ones that have the most experienced developers behind it. Those are the projects that we attach ourselves to, and I know you’ll see consumers do the same.

NIH: What’s next for Greybrook? What projects are you excited to get rolling?

PP: We are currently overseeing over 4,000 units that are in various stages of development. If Greybrook was a developer, which we are not, then we would be one of the biggest developers in the city. We have a multitude of projects that we have a hand in. We are working with Cityzen Development Group and Fernbrook in Liberty Village. We’re also working with a developer in Yorkville that should be really exciting. We hope to see that launched in the spring of 2013. We’re also working on a few other deals that should be fun.

We thank Peter Politis for his time and teaching us a little more about his role in the real estate industry. For more information, check out Greybrook’s portfolio of projects here.

Source: http://blog.newinhomes.com/tips-advice/market-condition/peter-politis-greybrook-realty-partners/

 

 

Latest Insights

138 Yorkville Featured in Elite Traveler’s Leaders in Luxury: Summer 2025

Portfolio Updates
July 7, 2025

We’re proud to announce that Elite Traveler magazine has featured 138 Yorkville in its Leaders in Luxury: Summer 2025 edition. Known for showcasing the pinnacle of global luxury, the magazine has recognized 138 Yorkville as one of the world’s most…

Occupancy Begins at House of Assembly: A New Chapter for Sterling Junction

Portfolio Updates
June 25, 2025

We’re pleased to share that occupancy is now underway at House of Assembly in Toronto’s west end. Developed in partnership with Marlin Spring, HOA is the first of three residential buildings to be delivered as part of the larger Sterling…

Greybrook Realty Partners Invests $22,470,000 in a Residential Development Project in Brantford, Ontario

Company News
June 19, 2025

Greybrook Realty Partners Inc. announced today the successful closing of an equity investment by its managed issuer of $22,470,000. This investment will support the acquisition and management of a development spanning 150 projected net developable acres, located south of Tutela…

138 Yorkville Presentation Gallery Transforms into the Apex Lounge for Yorkville’s Annual Exotic Car Show

Portfolio Updates
June 18, 2025

As automotive enthusiasts gathered in the heart of Yorkville to celebrate the neighbourhood’s 15th annual Yorkville Exotic Car Show, the 138 Yorkville presentation gallery transformed into the Apex Lounge—an exclusive experience designed to introduce 138 Yorkville to broader networks of…

Boardroom Brief: EP. 08 – Investing With Geographic Perspective

Insights
June 16, 2025

What happens when strong long-term fundamentals are met with short-term economic headwinds? In the latest episode of Boardroom Brief, we explore how Greybrook is navigating the delicate balance between opportunity and caution in today’s dynamic real estate landscape. Greybrook Securities…

John Huffman speaking at the PCMA Annual Conference 2025

Beyond Headwinds: Unpacking Canadian Real Estate Opportunities at PCMA 2025

Community
June 16, 2025

The recently hosted PCMA 2025 Annual Conference – Canada’s premier event for private investment leaders – served as a critical forum for dissecting 2025’s complex real estate landscape. As a conference sponsor and featured panelist, our firm was proud to have…

138 Yorkville Celebrates the Art of Timeless Design: A Man & His Watch, F.P. Journe

Portfolio Updates
June 12, 2025

Our ultra-luxury residence 138 Yorkville, developed in partnership with Cityzen and First Capital, continues its series of curated experiences as part of a broader marketing strategy, recently welcoming a select group of discerning collectors and tastemakers for an exclusive immersion…

From Boardroom to Ballpark: Greybrook Celebrates Summer Social 2025

Culture
June 9, 2025

This year’s Summer Social was a home run! Held in the TD Executive Lounge at Rogers Centre, the Greybrook team came together to enjoy an afternoon of baseball, camaraderie, and celebration as we cheered on the Toronto Blue Jays. Highlights…

Greybrook Team Pedals to Support 4th Annual Baycrest Bike for Brain Health

Community
June 2, 2025

This past Sunday, members of the Greybrook team proudly participated in the 4th annual Baycrest Bike for Brain Health charity event, riding along the Don Valley Parkway and Gardiner Expressway to help raise awareness for brain health. As Canada’s largest…

Greybrook and PMG Celebrate Topping Off of Society Las Olas Phase II

Portfolio Updates
May 16, 2025

Greybrook and our partner PMG, are pleased to announce the topping off of the second phase of Society Las Olas, a 563-unit, 42-story apartment tower in Downtown Fort Lauderdale. Located at 140 SW 2nd St., Society Las Olas is a…

All Publications