After a months-long sale process, The One condo project at Yonge and Bloor couldn’t find a buyer. Now, the court-appointed receiver, Alvarez & Marsal, has hired real estate developer Tridel to oversee the beleaguered skyscraper’s completion, according to court documents filed on December 11.
Alvarez & Marsal also intends to file for creditor protection under the Companies’ Creditors Arrangement Act (CCAA) on behalf of The One’s debtors — a move that would ensure the ongoing construction of the project as well as the marketing and selling of condo units.
“The Senior Secured Lenders have confirmed to the Receiver that they are committed to facilitating the continued construction of the Project to completion, including by continuing to fund construction of the Project, should the Transaction be approved and implemented and the CCAA relief granted by the Court,” the receiver stated in the court documents.
In June, The One was put up for sale a few months after it was placed into receivership (after lead developer Sam Mizrahi of Mizrahi Developments was ousted from the project in February).
The proposed mixed-use residential and commercial building has been scaled back from 91 storeys to its previously approved height of 85 storeys. It was originally marketed as the tallest residential tower in Canada but has faced a series of setbacks since construction began in 2017.
As we previously reported, the project had its deadline pushed back multiple times due to COVID-19-related delays coupled with a plumbers strike in 2019. Tech Giant Apple even began a court battle with Mizrahi Developments to exit the development after agreeing to open a new 15,000-square-foot flagship store on the ground floor of the building (the company succeeded in pulling out of the deal after The One was placed into receivership).
The most recent court filings state that Tridel — the largest builder of condos in the GTA — will take over as the project’s development manager, construction manager, and general contractor.
The development plan will include “value-maximizing strategies” as cost-saving measures, as well as potential redesign concepts for unbuilt residential units.
“[T]he Receiver and the Broker are of the view that Tridel’s premier reputation in the development industry will be of additional value in the construction and marketing of the Project” the documents state.
Despite the project’s legal issues, SKYGRiD, the construction manager on site, has ensured the “ongoing, uninterrupted construction” of the project.
The court filings state that as of Nov. 30, the building’s tower slabs have reached the 76th floor, and the installation of the window curtainwall has reached the 49th floor. Gas service to the suites has been installed up to the 47th floor, with HVAC distribution from the mechanical rooms to the residential suites partially complete up to the 59th floor.
Residential suites are expected to occupy floors 17 through 85, while the commercial spaces will comprise four underground parking levels and 16 aboveground levels, including the retail space on the ground floor, food and beverage spaces on the third floor, and spaces designed for a hotel on the fifth floor and floors seven through 16.
