Intensification in midtown is increasing at a rapid pace, so much so, that even rundown mid-rise buildings are being targeted by developers, resulting in multimillion-dollar deals. But councillor Josh Matlow said the area doesn’t have the necessary infrastructure to support the growth. 

Two four-storey apartment buildings at 55-65 Broadway Ave., near Yonge Street and Eglinton Avenue, were recently purchased for $44.5 million by the developer Times Group Corporation.

Lorenzo DiGianfelice of Commercial Focus Realty brokered the deal and said the new owner plans to demolish both buildings to make room for approximately 800,000 square feet of condo space, along with 900 condo units. Although DiGianfelice noted that the developer will also have to accommodate the existing 131 rental units currently on the site.

According to DiGianfelice, between the demolition process, relocation of tenants and rental replacements, the conversion is not always a cost-effective strategy.

“It really hasn’t been done that much in the city because of the headaches and costs associated with it,” he said.

But now, it’s becoming a more common business trend in midtown, where some developers seem to think the gains outweigh the costs.

Coun. Matlow blames the two 34-storey buildings at the corner of Redpath Avenue and Broadway Avenue, approved at the Ontario Municipal Board OMB), for setting a precedent in the area. He believes developers are “speculating” when purchasing properties, with the hope that they will get approval at the OMB.

“Yonge and Eglinton needs a pause, to allow for the infrastructure to catch up with the development that’s occurred,” he said.

But it doesn’t look as if that pause will come, with another two apartment buildings at 117-127 Broadway Ave. recently bought by another company for $36 million, that will likely be demolished in order to build more rentals — according to DiGianfelice.

Times Group Corporation did not respond to request for comment by press time.