Goldsmith would like to begin construction on the
StudioCANOO-designed building before the end of the year.
Goldsmith estimates it will take about two years to complete. He’s willing to build on spec if necessary because he’s confident tenants will come on board as construction progresses and occupancy timelines shorten.
The plan is for the development to be financed with 50 per cent equity and 50 per cent debt, though Goldsmith said he and Schultz will consider adding investment partners.
CBRE is seeking tenants to pre-lease space in the building as well as potential co-investors in the project.
Banks are generally reluctant to finance developments that aren’t pre-leased in today’s economic environment and, since the life sciences asset class is relatively new in Canada, there isn’t a lot of available historical data that may be able to convince them otherwise.
CBRE associate vice-president Daniel Lacey, who authored a
report on Toronto’s need for more lab space last fall and is representing Leaside Innovation Campus, told RENX 90 per cent of the potential tenants he’s spoken with don’t have flexible timelines and want to be in new space within 18 months.