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Are they going to cancel this project? looks like cancellation is very likelyfor YSL and 33 Yorkville
Supposedly Cresford wasn't profiting from this build anymore due to rapid rise of construction costs, but were committed to building this to save face.

I expect that either the prospective Cresford buyer comes in and saves the project, or the site is sold off to a developer with deep pockets and they take over and build.

In my opinion probably not since there is a lot of work here already started vs. the other 2 but knowing this I would personally never support and buy from Cresford
It is a bit early for such statements. It looks like at Cresford it was a matter of the left hand not speaking to the right hand. The owner assured the COO financing for projects using equity that didn't exist leading into this present situation - but on the operations/development side of things, the Cresford office seems competent enough and have delivered elsewhere (see Casa buildings).

If a buyer comes in and takes over Cresford's finances, then I don't think Cresford's reputation as a developer needs to necessarily take a hit.
 
Supposedly Cresford wasn't profiting from this build anymore due to rapid rise of construction costs, but were committed to building this to save face.

I expect that either the prospective Cresford buyer comes in and saves the project, or the site is sold off to a developer with deep pockets and they take over and build.


It is a bit early for such statements. It looks like at Cresford it was a matter of the left hand not speaking to the right hand. The owner assured the COO financing for projects using equity that didn't exist leading into this present situation - but on the operations/development side of things, the Cresford office seems competent enough and have delivered elsewhere (see Casa buildings).

If a buyer comes in and takes over Cresford's finances, then I don't think Cresford's reputation as a developer needs to necessarily take a hit.
Not being in finance I don't fully understand how it works but the fact that there's a lien on the project means that it's financially unstable and they have to pay it with interest before title transfer to the developer and then to the buyer
I try to avoid any developers with issues or liens or lawsuits. It's just too much of an investment in a home not to be diligent and go with the safest option.
Literally nobody know what's gonna happen to the 2 of Cresford's newest projects on Yonge, nobody including Cresford themselves.
 
Not being in finance I don't fully understand how it works but the fact that there's a lien on the project means that it's financially unstable and they have to pay it with interest before title transfer to the developer and then to the buyer
I try to avoid any developers with issues or liens or lawsuits. It's just too much of an investment in a home not to be diligent and go with the safest option.
Literally nobody know what's gonna happen to the 2 of Cresford's newest projects on Yonge, nobody including Cresford themselves.

I think this is a huge stain on Cresfords reputation. Was a fan previously but would never consider buying from them. Might as well shut everything down and come back with a new name.
 
Cement truck and workers busy doing their thing today, taken at around 2:30 PM.

Feb 24, 2020

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Lol. You won’t support any buy from Cresford? Cresford will not exist in the very near future.

I'm sure you're basing this solely on a disgruntled executive outpouring to the Globe and Mail. I don't believe things are rosy at Cresford either. It's probably rests somewhere in the middle. Casey has the ability to raise funds through his connections
 
I do hope this gets built in this form, by Cresford or others. I think it's a great design that preserves the historic clock tower and improves the streetscape
 
I care more about 33 yorkville and YSL because they will be more prominent in the skyline. This is a decent development and will be lost in the skyline.
 
If Cresford does indeed fail over escalating costs than who is supposed to step in? Every large condo developer has hundreds of millions in debt of their own with multiple projects underway. They are all flying by the seat of their pants as projects have rapidly increased from $50 million to hundreds of millions.
 
This is true, large complex companies usually operate in some form of debt just like the rest of us. I think there may be multiple issues that came up at the same time including rising costs and cash flow issue. There wouldn't be any projects in operations without large amount of debt lend out. Debt is what runs the economy and funds large projects all around the world. The issue here is the management of the debt and running these massive projects simultaneously with many obligations to various parties all at once, this is what is concerning.
 
Some perspectives - applies to all four Cresford projects, but only being posted once, on this thread:

First of all, there is tremendous value in what currently exists for the 33 Yorkville, Halo, YSL and Clover projects. The lands have been assembled and acquired. The municipal zoning and approval processes have been undertaken and completed. The architectural design has been completed, all the way through to building permit application and construction working drawings. Building permits have been obtained, shoring has been completed, and excavation is well underway. All this has value.

Now, assuming that Cresford is unable to arrange any additional required equity funding (that is a big if, on which I cannot and would not comment), the most optimistic scenario would be for Cresford to sell its equity interest in the project on terms that would either protect the position, or pay out the mortgage holders and any other sources of debt financing, as well as the trade creditors. Anything left over could go to funding Cresford's other projects, or for any other such purposes as Cresford might choose.

The question would be what happens then. If Cresford were to take enough of a haircut in this process, that an acquirer could keep the existing sales contracts, and meet their required rate of return by completing the project as is - well, that would be nirvana for the existing purchasers. Is this likely to happen - unfortunately, I suspect not. Even if a purchaser could meet a minimal level of return by completing the building as is, prices have moved up so much since the original sales took place, they would be leaving a huge amount of potential profit on the table. So it should probably be anticipated that the existing sales contracts would be cancelled on the basis of being no longer economically viable, and of being a contract that was entered into by the previous owner of the project.

Of course Cresford could cancel the existing sales agreements on the basis of being no longer economically viable, but should this happen, with all the history that has now taken place, the prospects of Cresford being able to successfully relaunch the project at a higher price point would be more constrained than those of another developer. Also, for Cresford to cancel and relaunch the project would not in of itself, do anything to resolve the developers increased equity requirements needed for overall financing of the project - again, if this is indeed the case.

A messier outcome (again, assuming the funding situation is as has been claimed) would be for the process to drag out to the point that either the trades, through their liens, or the debt holders, through breach of covenants (which would typically require the debt to be repaid after due notice) end up petitioning for receivership of the project. Should that happen, the whole administration process would kick in, with the possibility of a court ordered liquidation, and allocation of the proceeds on the basis of the seniority of the claims. While such a process would not necessarily reduce or eliminate much of the value which currently exists in the project, the big cost would be the opportunity costs resulting from the delays and extended timeframes that would result. Again, should this situation come to pass, the existing sales contracts would probably become worthless, and be voided at some point along the way.

All this is speculation - the situation could all be a false alarm triggered by an aggrieved former employee. Or there could really be a developing financing crunch at Cresford. At this point, the only thing that people who are not involved with, or directly informed of what is going on behind the scenes, can only wait to see what unfolds.

The ones in the most difficult situation (other than perhaps Cresford itself) are the existing purchasers, who do not know if they will end up receiving their units, or whether they should be starting to look for some other replacement alternative, before Toronto prices escalate any further.
 
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I'm sure you're basing this solely on a disgruntled executive outpouring to the Globe and Mail. I don't believe things are rosy at Cresford either. It's probably rests somewhere in the middle. Casey has the ability to raise funds through his connections

Weird hat we haven't heard anything from Cresford refuting these "rumors". Weird that Cresford sites have no activity. You think this disgurntled employee just made all this up?
 
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Weird hat we haven't heard anything from Cresford refuting these "rumors". Weird that Cresford sites have no activity. You think this disgurntled employee just made all this up?
Cresford doesn't owe anyone a response. And there is activity in the sites in question as evidenced in the photos from the last few days,
 
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Cresford doesn't owe anyone a response. And there is activity in the sites in question as evidenced in the photos from the last few days,

Wonder if purchasers feel that way. You're aware that if they do owe contractors money, a lien can be placed on the property, right? You don't think purchasers care about that? Cresford doesn't owe their purchasers a response? I know if I bought into one of their projects I'd be looking for a response.
 
Weird hat we haven't heard anything from Cresford refuting these "rumors". Weird that Cresford sites have no activity. You think this disgurntled employee just made all this up?
It's not some disgruntled employee either. It was the COO, and by the sounds of it, she was basically the one running the show at Cresford over the past several years.
 

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