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1042 and 1040 Queen Street West were demolished. What will replace it remains to be seen. There's a hoarding with a depiction of the future of 1042 and it appears to look like the building to the west. Construction by Traugott Building Contractors. 1040 looks built and is being leased by Regent Street. It appears to be a modern building but there's too much in the way to see it.

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"2nd coolest neighbourhood in the world!!!!"
- Vogue, probably

That being said, the design is far better than the original design, but:

1.) Proportions are a bit squat (total height a bit shorter compared to neighbours)
2.) I think this could be at least three stories, since it is a bit of a shame that they're basically replicating the building that they just demolished.
 
Similar to the former KFC site redevelopment up at Dundas W & Grove, having a 2-storey new building along major urban streets is terribly disappointing. If the parameters of the original application here still holds, then 4 storeys would have been ideal. Really a lack of initiative by the property owner here.
 

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