Welcome to Mid-Rise.Ca’s Project Profiles, where we delve into the experiences of successful mid-rise developers to gain valuable insights into their journey. In this blog post, we have the privilege of speaking with Kostadin Demirov (Kosta), a remarkable real estate developer who single-handedly navigated the complex world of mid-rise development to complete a major project successfully.
Kosta’s venture began with a passion for construction and investing. He started small, undertaking custom house projects and mastering various trades. Gradually, he expanded into developing and building new homes, where he gained a strong foundation of knowledge and experience in the real estate industry. However, it wasn’t until he set his sights on a more significant mid-rise development that he truly tested his determination as a developer.
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When asked about his motivation to pursue a mid-rise project, Kosta shared his desire to push himself to new heights. “I like to grow; I like to stretch myself and learn and to expand,” he said. This thirst for growth and challenge led him to embark on a journey that would prove to be very demanding but, in the end, so rewarding and fulfilling.
Financing
One of the most significant challenges Kosta faced during his project was securing funding. He knew he needed substantial financial backing for a project of this magnitude. Drawing from his reputation and credibility within the industry, Kosta managed to secure financing from the Canada Mortgage and Housing Corporation (CMHC) to the tune of 93% of the project’s cost. His commitment to transparency, his investment in the project, and the team he had assembled highly impressed the lenders and gave them confidence in his success.
The Approval phase
The road to success wasn’t without its obstacles. Kosta had to navigate the complex world of permits, drawings, and approvals, which took nearly five years before construction could even begin. But his determination and unwavering belief in the project kept him going. He recalled, “I put my heart and my soul into it. I wanted to own it. I wanted to feel proud that I built this.” And build it, he did.
Kosta emphasized the importance of teamwork and collaboration in the development process. He stressed the need for streamlined communication between consultants, architects, engineers, and city officials. In his view, a collaborative approach that involves all stakeholders from the early stages can significantly reduce red tape and streamline the development process.
long-term vision
The completed mid-rise building is a testament to Kosta’s dedication to quality and attention to detail. The project showcases top-notch finishes and materials despite the challenges of adhering to a rental model. As a developer with a strong sense of pride in his work, Kosta believes in building for the long term. “I wouldn’t do anything else; I would only do rental,” he asserted. To him, rental properties hold a unique allure, a legacy of his hard work and dedication that endures for generations.
For Kosta, providing top-notch value to people was a core principle guiding every project aspect. From the mechanical system to the elevator and acoustics, he carefully considered every detail to offer the best possible experience for future residents. This dedication to excellence extended to the building finishes, ensuring that the completed project would stand out as a model of quality.
The project incorporated geothermal technology for heating and cooling. He spoke highly of the geothermal team he worked with, praising their professionalism and knowledge. Though he is still monitoring the performance of the geothermal system, Kosta believes it will significantly reduce greenhouse gas emissions and energy savings for the building.
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NAVIGATING THROUGH COVID-19 CHALLENGES:
Construction faced numerous setbacks and restrictions during the pandemic, making project management particularly challenging. However, Kosta managed to overcome these obstacles due to his proactive approach. Ensuring he secured the full building permit before the pandemic hit, he avoided delays when construction sites without full permits were temporarily closed.
Kosta’s successful completion of the project during COVID-19 emphasized the importance of being prepared for unforeseen circumstances. By having all permits and approvals ready, he was well-positioned to navigate the uncertainties brought on by the pandemic.
THE POWER OF HIRING THE RIGHT TEAM:
One of the key takeaways from Kosta’s experience is the significance of assembling the right team for the project. He emphasized the importance of choosing experienced professionals and maintaining open communication with them. By building solid relationships with his architects, planners, lawyers, and construction team, Kosta could trust their expertise and make informed decisions. Moreover, he highlighted the value of hiring tradespeople who demonstrated dedication and commitment to quality work.
A significant lesson Kosta learned during his project was the importance of patience. He advised that pushing too hard to expedite the process could lead to costly mistakes or compromises in the design of the building and the quality. By staying patient and trusting the professionals he hired, Kosta achieved his vision for the building while adhering to regulations and standards.
HANDS-ON APPROACH
Although you need to have the right team in place, overseeing the project firsthand plays a crucial role in its success. He was actively involved in every aspect of construction – in the morning, he was the first one on the site and the last one to leave at the end of the day – from dealing with contractors to monitoring the progress on-site. This hands-on approach allowed him to identify potential issues early on, save costs, and ensure work was done to his satisfaction.
In addition to the insights we’ve already discussed, Kosta emphasized several other key factors that contributed to the success of his mid-rise project. One essential aspect he highlighted was the significance of having the right construction management team on board. He believes that having individuals who genuinely care about the project and treat the client’s money as their own is crucial. This level of commitment ensures that every decision made is in the project’s best interest, leading to a successful outcome.
Maintaining Integrity and Building Relationships
Throughout the interview, Kosta emphasized the importance of integrity and maintaining good relationships with all stakeholders. By honouring his word and being respectful to others, he built trust among his team, neighbours, and authorities. This integrity, combined with open communication and collaboration, enabled him to find solutions to challenges that arose during the project.
Furthermore, Kosta stressed the importance of creating and nourishing healthy and productive relationships with the neighbouring community. By establishing a personal connection with the community, he was able to address potential logistics issues in a cost-effective manner. These open lines of communication helped him find solutions to challenges that could have been far more costly if left unresolved.
By integrating all of these lessons into his mid-rise development journey, Kosta was able to navigate through challenges and achieve his vision of creating a high-quality rental property on time and on budget during a global pandemic, a feat that not too many seasoned developers can lay claim to
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His journey as a mid-rise developer is an inspiring tale of persistence, adaptability, and tenacity. He conquered the challenges of undertaking a major project, emerging as a role model for aspiring developers looking to make their mark in the real estate industry.
