[Homer]

One of Toronto's hottest would-be addresses, One Bloor, won't be auctioned off to settle unpaid debts.

At least not yet.

A court proceeding scheduled yesterday that was to decide the fate of the 67-storey, condo-hotel-office tower was cancelled after receivership proceedings by the creditors of the Kazakhstan-based Bazis International project were abandoned.

In a statement last night night, Bazis said another "well-established Toronto developer" had entered into a "binding agreement" with it.

In July, the numbered company that took over the $46- million debt for the property at Yonge and Bloor Sts. -- a consortium of Toronto businessmen -- demanded to be repaid after the developer failed to make payments since December.

The lenders wanted the project's assets, estimated at about $50 million, put into receivership with Ernst & Young and auctioned off to settle the debt, and were also reportedly seeking more than $1 million in structuring fees and accrued debt.

But Lawrence Thacker, Bazis' lawyer, told the Sun yesterday the project will still go ahead, "in some way or another, absolutely."

"The moving party ... (or) the lender has abandoned its receivership proceedings," Thacker said.

Back in November 2007, hundreds of people camped out for weeks waiting for One Bloor's sales office to open.

But since then, the building has shrunk to 67 storeys from 80 to save money and other investors in the deal, namely a Kazakhstan bank that was to pay for the tower construction, have been embroiled in scandal involving fake loans, racketeering and money laundering.

BRYN.WEESE@SUNMEDIA.CA

 

[maestro]

And really why wouldn’t a Tridel (or other) want to finish what’s already planned and approved? The cost of going through that process again for no clear gain would be huge and pointless.

What process again?


P.S. What good are sales contracts when there is likely no one(s) who will finance its construction. They likely want huge concessions if there is. I also have huge doubts this tower is as sold as we've been informed.

 

[Edward]

What a mess.

 

[BMyers]

I've heard it is a different developer.

It would be strange if Conservatory purchased the site seeing they would be competing against themselves (Milan), but it could be a couple years before they launch a site at 1 Bloor?

Howewer, I guess they have done this before: Universal and Widesuites in the Mississauga City Centre most recently.

 

[confusion]

I don't understand why they just don't all jump in bed together. They'll likely make the most money that way, and residents will get the best tower.

 

[MBS-Guru]

Just in ....

One Bloor Street East condo sold by developer to mystery buyer
680News staff Toronto | Wednesday, August 19th, 2009 8:05 am Toronto - There is more uncertainty for the buyers of condos at One Bloor Street East.

The financially-troubled developer has sold the tower at the corner of Yonge and Bloor streets.

It is not yet known who bought the tower, or what the sale means to the condo investors.

The developer recently scaled back construction plans from 80 to 68 storeys due to money issues.

The new owner takes possession of the prime piece of real estate in mid-September.

Might be a blessing in disguise for all those buyers ..... this thing is going to drag out for a long long time ........ too bad because it's starting to look like an eyesore with nothing but a big field of dirt on one of the best corners in Toronto.

 

[vultur09]

I would be very curious to know whether the full engineering impact of building a super-structure on this site over top two subway lines has been fully investigated by anyone. It seems to me that the commercial viability of this project would depend on knowing for certain that this can be accomplished.
There are so many reputable minds on this forum. Can anyone offer some insight as to how this engineering challenge might affect the budget?

Also worth noting is that lenders today are understandably ultra-cautious and probably have very good reason to doubt the ability of the current buyers to close their contracts at the bubble-era inflated prices upon completion. All this creates the most dirty word in the real estate financing vernacular- uncertainty.

 

[interchange42]

Just in ....
Might be a blessing in disguise for all those buyers ..... this thing is going to drag out for a long long time ........ too bad because it's starting to look like an eyesore with nothing but a big field of dirt on one of the best corners in Toronto.

Pretty hilarious to see a 680 News report being quoted as a reliable source: that station is as notoriously inaccurate and as lax as hearsay. MBS-Guru - have you not read a single thing from the last several pages before posting?

42

 

[interchange42]

I would be very curious to know whether the full engineering impact of building a super-structure on this site over top two subway lines has been fully investigated by anyone. It seems to me that the commercial viability of this project would depend on knowing for certain that this can be accomplished.
There are so many reputable minds on this forum. Can anyone offer some insight as to how this engineering challenge might affect the budget?

This project is west of the Yonge line and south of the Bloor line. Neither line is directly beneath it.

Meanwhile, Shangri-La is being built directly west of, and deeper than, the University subway line: the engineering does not seem to be an insurmountable problem.

42

 

[maestro]

I would be very curious to know whether the full engineering impact of building a super-structure on this site over top two subway lines has been fully investigated by anyone. It seems to me that the commercial viability of this project would depend on knowing for certain that this can be accomplished.
There are so many reputable minds on this forum. Can anyone offer some insight as to how this engineering challenge might affect the budget?

The very fact that there are five levels of underground parking should be a clear indication that there ain't no subway here.

 

[scarberiankhatru]

Building on top of subway lines isn't a problem provided the tenants are of light build and relatively sedentary and, uh, given a spot of good weather.

 

[Solaris]

Building on top of a subway line (even IF that was the case) isn't a problem as it is 'do-able' absent the multi-level underground parking (instead one would have to build above grade parking garage instead) ... this is a similar arrangment in the proposed redevelopment of Cumberland Terrace west of the CIBC tower at 2 Bloor Street West ...

In the Cumberland Terrace's concept, towers are proosed at 36 and 45 storeys respectively right on top of the subway tunnel ~

Putting the project in context... here's 2BW/Cumberland Terrace with the rest of the Bloor-Yorkville skyline in Sketchup.

 

[WiddleBittyKitty]

What is it with people who think that developers (even ones from Kazakhstan) could plan a half-billion dollar building, and not have thought about a subway rumbling by underneath? Of course they know what is under their site and have planned for it. In this case it's the Xerox building that the subway passes under, and there are many more buildings in the where that is true: it's not a problem.

 

[Prometheus The Supremo]

Building on top of subway lines isn't a problem provided the tenants are of light build and relatively sedentary and, uh, given a spot of good weather.

http://www.youtube.com/watch?v=e2PyeXRwhCE

 

[cdr108]

This project is west of the Yonge line and south of the Bloor line. Neither line is directly beneath it.

Meanwhile, Shangri-La is being built directly west of, and deeper than, the University subway line: the engineering does not seem to be an insurmountable problem.

42

i realize the Bloor line is on the north side' but i thought the Yonge line from Summerhill to Queen St. stations were on the east side of the street?

that said, yes, engineering isn't a problem in this day and age ... it may just cost more $$$ and some ingenuity.