The Victorian era is full of crap that gets passed as excellence nowadays but, that's another day, another topic.
This building has been bastardized to the point that I don't think it's fair to call it Victorian. If this is stucco clad hole is a candidate for heritage perservation than just about every else is. As a growing city we have to keep in mind that we simply don't have the luxury to perserve every detail and remnant of bygone eras. Otherwise, we end up with Tribute's awkward 426 University proposal. The higher and more particular our heritage standards, the less likely the townhouses on Charles West would of been flattened.
Ideally, it would of been great for a carefree someone with deep pockets to come along and rebuild but, again, I don't see anything wrong with the rendered replacement. It won't win any awards but, neither did the townhouses.