Rockford Group’s Darren Schaaf says that despite the economic downturn they are moving ahead with Axis, a 72-unit development in Walden.Chris Bolin/The Globe and Mail
Not that he's sloughing off the elephant in the room, but Darren Schaaf says it's too early for doom-and-gloom scenarios in the wake of the declining fortunes of Alberta's oil and gas sector.
Schaaf is president of Rockford Group, a multi-family builder that has been digging dirt and framing condominium townhouses in Calgary since 1991. So he's been on more than one ride on the roller coaster that is this province's economy.
He is the only president Rockford Group has had.
"We had a really strong fall sales-wise and there still a lot of stuff in the pipeline, so it's a bit too early to start being too negative," he says from the boardroom where the table is liberally covered with plans and brochures for the company's next townhouse project.
Despite concerns in some quarters, the growing layoff head count and possible declines in migration, Rockford is moving ahead with Axis, a 72-unit enclave on four acres of land in the community of Walden that is being created by Genstar Development Co. in the city's burgeoning southeast quadrant. Rockford has a history with Genstar, having built its townhouses in various communities in Calgary, including high-profile neighbourhoods such as Chaparral in the city's southeast, and Panorama in the north-central area.
"We've been through this kind of thing before, so we're cautiously optimistic about the future, both short- and longer-term," he says.
Back when the company was founded nearly a quarter-century ago, Rockford was a pioneer in the construction of townhouses, so facing the skeptics is nothing new.
"People thought we were crazy to get into the townhouse sector," Schaaf says. "Nobody was doing townhouses in Calgary, nobody. 'It'll never fly,' we were told. Well, here we are all this time later and we're still standing. We are confident in our abilities to provide the type of homes more people are looking for, homes that suit their lifestyles."
Rockford has built more than 3,000 townhouses in Alberta with about 2,500 of them in Calgary.
So what is the corporate approach as the company prepares to break ground on Axis in why might be considered uncertain times?
"Everything sells at the right price, so we'll just adjust as needed to the marketplace and move forward," he says.
Rockford will beginning marketing Axis in the next two weeks or so and then will break ground in April to begin work on the in-ground infrastructure. Construction of houses will begin in May with a pair of show homes ready to open their doors to the public in four to six months.
Axis will offer three "modern, linear" floor plans, each with three bedrooms and 2 1/2baths on two floors above the garage level that, depending on the floor plan selected, can be a two-car, single-car, or two-car tandem style.
Floor plans, measuring from 1,186- to 1,435-square feet, are priced from $350,000.
One element of the strategy being employed by Rockford is to build just what they have sold; there will be no spec construction. That, says Schaaf, is why Axis will be brought to the market in 13 phases with homes built in clusters of four to eight attached homes. Axis is expected to take 18 months to reach buildout.
"We'll build what we have sold, keep an eye on the pulse of the marketplace and react accordingly," Schaaf says.
The condominium sector has changed dramatically in the 24 years Rockford has been around. In the early days, condos were looked on as an affordable alternative to single-detached housing. These days, no matter where in Canada you are, condos are a lifestyle choice.
From young singles and couples 25 to 35 years of age, to more mature buyers looking for a "lock-and-leave" scenario, condominiums has gained in public appeal.
"I don't know what it is, but we seem to get a lot of young females buying in our projects," Schaaf says.
The ability to adjust to the ever-changing desires of consumers has meant that Rockford has expanded its horizons to include not only townhouses, but also villas and inner-city infills, and even some commercial developments.
"We know what we're doing, we know what people expect in a home that has been built by Rockford," Schaaf says. "Recognition from industry peers and homeowners validates the tremendous effort we put forward into the homes we build."
But the road to success has had its share of potholes for Rockford to bounce over, and this latest chapter in the up-and-down economy of Alberta will be overcome, eventually.
"Building in Alberta, we designed our business model to be successful in an economy based on fluctuating oil and gas prices. Heading into 2015, it will be business as usual," Schaaf says.