As of last Friday, as first reported by Storeys, Ontario courts have agreed to five sales related to two development projects managed by Mizrahi Developments. The purchase agreements include the sale of retail and residential units at a luxury condo at 128 Hazelton Ave. in Yorkville, as well as a multi-tower project at 180 Steeles Ave. W. in Thornhill, with the latter sold to Constantine Enterprises Inc. (CEI) via a stalking horse bid (a bid that is arranged between the debtor and the bidder in advance of an auction, that acts as a baseline offer).
The news comes after an Ontario court agreed to the receivership orders for both sites back in June. Since then, KSV Advisory (the appointed receiver) has asked the court to issue a sales process order so they could start selling these projects.
As Post City previously reported, the nine-storey, 20-unit boutique midrise development on Hazelton Ave., near the intersection of Avenue Road and Davenport Road, has suites ranging from 891 to 3,046 square feet, with a variety of exposures and layouts.  KSV’s June 14 report for this site stated that they hired CBRE Limited to handle the sale of the retail part of the Hazelton Avenue project through a stalking horse agreement between the receiver and CEI.
CEI first made a plea for receivership back in February, citing that they “lost confidence in Mizrahi and the Mizrahi Group’s ability to fulfill their financial obligations, past and ongoing.”
The project at 180 Steeles Ave. W. is a six-tower mixed-use condominium development that is expected to have 2,080 units. CEI alleged that Mizrahi owed about $28.9 million and that there were additional mortgages from other financial groups linked to the property, totaling about $98 million (a second mortgage registered to Trez Capital for $20 million and a first mortgage registered to CWB Financial Group for $78 million, according to CEI’s April affidavit).
Mizrahi Developments dominated local media coverage back in February when it was announced that the company was ousted from the development of the Yonge and Bloor skyscraper The One, a few months after the building was put into receivership.
