Aragon’s Lenny Moy on Building Different in Vancouver Real Estate

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Founder and President of Aragon Properties, Lenny Moy, sits down with us to talk about overcoming challenging Vancouver real estate conventions and building off centre ice. What makes Aragon different? Where are future opportunities? And why is everyone loving mass timber?

Who is Lenny Moy?

I was born in Hong Kong and came to Canada when I was about 8 years old. I grew up in Toronto and went to school out there where I got my engineering degree and MBA. I came to Vancouver in 1985 and started Aragon in 1988.

One of the reasons why I came out to Vancouver was because my prior company didn’t have a position for me and so I identified Vancouver as a place with a lot of opportunities. I suggested to my boss that I come out to Vancouver to open their new office. I saw opportunities for growth. And selfishly, I liked the climate in Vancouver!

How did you get into real estate? How did you decide to start your own company?

By luck! I studied engineering and worked as an engineer at first, but didn’t see it as fitting my personality. So I went back to school and got my MBA. I happened to land with a developer who put me on a construction site.

When I came out to Vancouver with my previous employer, I was the only one. I started the division and hired all my own staff. I didn’t intend to be an entrepreneur but I came to a crossroads and decided to start my own company.

You can always work; you can always find a job. But there are points in your career when you can take risks.

At that point, I was 29, and I decided to take the leap. It didn’t feel uncomfortable for me because I already had the experience of starting my own division.
It was an exciting time for me when I came out to Vancouver! I had my own office on the 35th floor of Park Place and felt like I had made it. I didn’t know anyone in the city and I worked hard. I knew I had to rely on myself because if it didn’t work, I’d have to go back to Ontario with my tail between my legs.

What was Aragon’s first development project?

I started on a shoestring budget and needed to utilize my skills while navigating an industry that’s capital-intensive. I understood certain tax advantages and used that to buy rental housing projects and package them for investors. I applied those skill sets to our first Aragon property in Richmond.

What does a good deal look like?

There are basic principles I try to follow, even though deals change over time. I started out as a small fish with very little capital in a large pond. So I’m always thinking about how I can differentiate myself.

You can compete in the core with everyone else buying the best properties for top price. Or you can look for things farther from centre ice and do something different.

I focused on architecture and design away from centre ice. I didn’t want to compete on price; I wanted to compete on zoning and design so I could differentiate myself. We follow the strategy of trying to be different in what we do. Over the years, people have been drawn to these desirable features they’re not used to seeing.

Aragon works all over, from LA to Toronto to Vancouver Island. How are you considering different regions in North America?

At the core, I like to challenge myself and I like to be curious. I want to see if I can do it. I’m always trying to do the best I can in any particular moment.

Toronto was our first office outside of Vancouver. At the time in the late 80’s, there was a sentiment that Toronto was the centre of Canada and that Toronto developers were better than Vancouver ones. So I wanted to go back to Toronto and see if I could do well there. It was a similar idea when I opened offices in Los Angeles, Victoriaand Hamilton.

How do you build a team in a new area?

Staffing is a challenge. Our industry isn’t based on innovation but instead based on what has been done before. To get people to buy into something new, it’s more difficult. But we attract people who want to be different. We’re not always successful but we attract people who like what we do.

For trades, that’s a more difficult task. They want to be profitable, so they need to understand the risks versus the rewards when they look at something new. The majority of the trades don’t want to do something different because it’s risky. But over time, they get used to what we’re doing.

Can you tell us about Aragon’s unique presale model?

It goes back to our strategy of trying to be different. In order to communicate our differentiation, we can’t just rely on renderings and floor plans. We need to wait to let people see the end product and appreciate it.

Obviously, we’re exposing ourselves to mostly end-users through this model, instead of investors. And end-users are more critical because this is their home. They notice all the little finishings, the neighbourhood, the neighbours, etc. It forces us to be a better developer because we have to pay attention to the details.

What does a typical day look like for you?

A typical day starts around 8am in the office or a coffee shop having casual meetings. I then have a full agenda of tasks I want to accomplish, such as meetings, providing feedback on design for my team, etc. There is a lot packed into the day.

I am involved in everything from marking up floor plans to looking at interior design concepts to construction. But we have a great team and we’re able to work through things together. Being involved allows me to get a good feel for what will be cost-effective and design-forward.

How is the Vancouver real estate market? Does today’s market remind you of any other time?

Yes. Every cycle is different but they do have similarities. We’re coming into a market that is unknown. There have been ups and downs over the last year. Coming out of covid, it’s been hard to construct real estate. If you’re lucky to own, it’s been easy to sell, even though the market hasn’t been as vibrant.

Anyone who says they know where the market is going only seems to be right 50% of the time. No one has a crystal ball and there are worldwide events happening outside of people’s control.

As a developer and builder, you need to be cautious during this time. You have to be nimble and able to flow with the market. 

Our current market reminds me of the Asian currency problem in the mid 90’s. There was a big unknown of where the market was going and not a lot of liquidity. The market was pretty frozen. I don’t think today’s market is as bad as that but there is a lot of similar guesswork.

Are there opportunities right now?

It comes down to your cash position. If you have cash and see an opportunity in an unstable environment, you can jump in. But a lot of times when things are unstable, you don’t have the cash to separate yourself from the pack. It’s all about luck and timing to capitalize on opportunities.

Are there any areas in the Lower Mainland or BC that you’re excited about?

I have to be careful about how I answer this since I’m selling right now! It’s no secret that Vancouver and the Lower Mainland have seen tremendous increases in values over the last little while.

We sell to homeowners who have a need, not as an investor vehicle. So I’m looking for locations that aren’t well served where we can build a unique product and cater to the home owning end-user.

We see a lot of people migrating out of Vancouver. A lot of people are looking at the Okanagan Valley and Vancouver Island. When I weighed up the Okanagan vs the Island vs the Whistler corridor 10 years ago, I concluded that for my lifestyle, the Island would be the best fit. I think there are opportunities there because it’s a desirable part of the world.

On Vancouver Island you can still find comparable housing to Vancouver at a lower price point, the climate is desirable and the lifestyle is desirable.

Why do you like New West and why is Aragon working in that market?

It goes back to my desire for properties that are off centre ice. We’ve been developing an area in Queensborough for the last 25 years with a 50 acre master plan project, Port Royal. It’s an opportunity to create my own community and put in a design that would be challenging to get approved elsewhere. We were able to plan out 10-15 years in the future.

Let’s talk about Timber House.

Timber Houseis the largest residential mass timber project and it’s our last project in Port Royal. When I looked at it, I knew we could be even more innovative than we’ve been in the past. I said we should do something unique that we can learn from and apply to other projects.
The project has 87 units with a large central courtyard surrounded by three buildings. There are exterior corridors so everyone has their own front door. We have 1, 2, 3 and 4 bedrooms in condos, townhouses and lofts. The mass timber allows us to have larger spans so we have 20 foot high ceilings as a result.

Can you tell us more about mass timber?

Mass timber, or CLT (cross laminated timber), is a very green material. It’s very precise and can replace some building materials, like concrete and steel, that aren’t as environmentally friendly. It’s sturdier and more secure than traditional wood frame building. It also feels like you’re more a part of nature when the wood is exposed. Soundproofing is also better when CLT is produced correctly.

It has been challenging to work with the municipality because we’re doing something new. Municipalities aren’t looking to innovate; they’re looking at the safety measures. Even though we’re following national and provincial codes for mass timber building, the municipality wanted a second opinion.

There are people who love what we’re doing with mass timber. The purchasers like the idea of being surrounded by more wood and think what we’re doing is very unique. As human beings, we evolved in a natural environment. If you bring more natural materials into your home, you feel better.

What is your why?

I’ve never thought about leaving a legacy or anything that deep. As an engineer, I’m a process type of guy. When I think about what we’re doing, I just focus on the process. I don’t want to do the same thing all the time. As my wife will tell you, sometimes there’s not a lot of great thought into what I do!

Bonus q: How did you come up with the name Aragon?

Well, when I started my company, I had to choose a name. I originally thought of a stupid name, Zexus, but it sounded too much like “sexist” which people told me would get me in a lot of trouble. So I was driving around Richmond and thought of Lord of the Rings. My favourite character is Aragorn. But I spelled it wrong and that’s how I got Aragon!

The 5 Wire: Getting to Know Founder and President of Aragon Properties, Lenny Moy

What is one book you recommend?

I’m not a voracious reader but my favourite book is the Lord of the Rings trilogy. It’s the one series I always come back to.

What new belief, behaviour or habit has most improved your life over the last few years?

It’s all about refinement. I’m not sure I’ve found a revelation but I’m always fine-tuning. I’m always looking at how I can improve as a leader, a father, a business owner and a person.

What have you been binge watching lately?

I’m not a binge watcher but I enjoy watching any movie with my daughter. We saw the new Spider-Man movie over the weekend. I don’t think I understood it – I might be part of the lost generation with those movies – but I enjoyed seeing it with her.

Favourite band?

I’m an easy-listening kind of person. My favourite band is Simon and Garfunkel.

What is something you’ve purchased recently for under $1500 that has had a positive impact on your life?

I don’t buy a lot of things. Maybe a tennis racquet? I try to play a lot of tennis but I could improve. I enjoy pickleball too. My wife loves it and it’s a great social sport. I’m a big believer in finding something you love to do and going out to do it as much as you can.

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