1 Bloor East, DEAD AND BURIED (Bazis, -2s, Varacalli)

[Nebakenezer]

It still might be built, just by another developer.

If you think about it, the design has been done, and they already have sales. Why go thru that whole process again. Just pick up the ball where it left off and run with it.

 

[Redroom Studios]

that would definitely be my next option if Bazi's cant continue, though I would expect from a legal standpoint all existing agreements would be null and void.

 

[Peepers]

It still might be built, just by another developer.

If you think about it, the design has been done, and they already have sales. Why go thru that whole process again. Just pick up the ball where it left off and run with it.

I actually think that this is what will happen. Bazis sold out most of the tower with total sales in the hundreds of millions. All of this VALUE will evaporate if they do not put a shovel in the ground SOON. For developers with deep pockets this seems like a situation that would be hard to pass up. I would be surprised if Bazis does not "partner" with a major local developer to get this project done. It does not make sense to me for another developer to go back to "square one" on this site when they have the kind of sales that have already been reported.

 

[maestro]

I believe the day for purchasers to back out of their contracts has already come to pass though. (or was there another extension?)

I don't see why another developer would keep this design if they can make more money on another design. This is Toronto too. They can totally change the design without needing to go through re-zoning process.

 

[MadMax]

I believe the day for purchasers to back out of their contracts has already come to pass though. (or was there another extension?)

I don't see why another developer would keep this design if they can make more money on another design. This is Toronto too. They can totally change the design without needing to go through re-zoning process.

Make more money on another design??? Why would another developer re-design, re-market, re-sell, and all of the other hassles that go along with developing when everything is basically done for them!

 

[Automation Gallery]

This is Toronto too. They can totally change the design without needing to go through re-zoning process.

I guess.... they can chop it up, box it up etc, all they cant do is go any taller.

 

[Nebakenezer]

It makes no sense to restart everything, the design is pristine and they already acheived the most price per sq.ft they can possibly acheive. And this was done at market peak. To do so now will be very very difficult.

Assuming the project gets picked up by another developer with clout. 1 Bloor will get built. I'm fairly certain of it now.

 

[maestro]

Why would another developer re-design, re-market, re-sell, and all of the other hassles that go along with developing when everything is basically done for them!

I'm considering the existing sales contracts won't survive the transfer. The market ain't what it used to be either. We've seen plenty of projects completely re-designed as well. I'm also assuming the more complex design work hasn't even started.

You have to go back aways since the last big bust and liquidation event but, only one of the half dozen projects sold by Peregrine Hunter ended up built to spec ... ironically as a rental.

 

[Archivist]

Realistically, there is almost no chance whatever that 1 Bloor E will be built as it was conceived. I wasn't aware of any building, ever, that failed and then was built to its original specs, but if maestro knows one then I am willing to go with that. So, the number of buildings that were planned, then cancelled or significantly delayed, but ended up getting built in their original form in this city can be counted on a single finger. And the number of planned developments that failed to take off and never materialized in their originally planned form counts in the many thousands.

Think of Bay-Adelaide. How long did everyone assume that the elevator core would be re-used. In fact, it ended up being a public plaza in a completed different configuration of buildings.

 

[adma]

Or for that matter, think of the old Bank of Nova Scotia: John Lyle's scheme a victim of the depression; and then his successors simplified it for construction after WWII...

 

[Solaris]

With the BIG DAY now upon us ... I await to hear the fate of One Bloor from today's court hearing

It is all up to you now ... Judge Siegel !!

 

[jw03]

Posted on the Presentation Centre's door today

Looks like Bazis is defaulting all over the place. Here is the Notice of Termination of the lease on their Presentation Centre in 33 Bloor Street East, posted today.

(My apologies for the triad of photos, the type was illegible on account of resolution when in a single photo, taken with my phone.)

 

[caltrane74]

15k?

And they wanted to put up a 500 Million dollar condo?

wow.. that just kills credibility.

 

[Solaris]

Posted on the Presentation Centre's door today
Looks like Bazis is defaulting all over the place. Here is the Notice of Termination of the lease on their Presentation Centre in 33 Bloor Street East, posted today.

(My apologies for the triad of photos, the type was illegible on account of resolution when in a single photo, taken with my phone.)

thanks for that update jw03 ...

without going there in person one would never know ~ a Notice of Termination on their sales office is certainly pointing to a bad sign for One Bloor

 

[Mike in TO]

It still might be built, just by another developer. If you think about it, the design has been done, and they already have sales. Why go thru that whole process again. Just pick up the ball where it left off and run with it.

That isn't how the system works. The 'ball' wasn't exactly left in a spot worth picking up.

I actually think that this is what will happen. Bazis sold out most of the tower with total sales in the hundreds of millions. All of this VALUE will evaporate if they do not put a shovel in the ground SOON. For developers with deep pockets this seems like a situation that would be hard to pass up. I would be surprised if Bazis does not "partner" with a major local developer to get this project done. It does not make sense to me for another developer to go back to "square one" on this site when they have the kind of sales that have already been reported.

There is virtually zero chance that this is what will happen. The 'perceived' value already has evaporated - the value is in the land & density permissions, not the previous purchase and sale agreements and deposits held in a third party trust.

Bazis isn't going to partner with a major local developer - they've been desperately trying to find a dance partner since spring 2008 when things started falling apart for them (which is incidentally months before Lehman bros or the market crash) - nobody wants to touch the project with a ten foot pole.

It makes absolutely perfect sense for another developer to purchase the site and start from scratch. There are additional zoning permissions in place - due to the initial Kolter proposal and then the bazis proposal. Therefore basic parameters of what is possible have been established, although there will still be regulatory hurdles, extremely difficult financing conditions (the loan would have to be syndicated between a number of partners and that kind of money simply isn't available in Toronto right now and the equity requirements narrow the list of potential local suiters to a very very thin list) as well as a potential strong lack of consumer confidence/mistrust in the site itself.

Make more money on another design??? Why would another developer re-design, re-market, re-sell, and all of the other hassles that go along with developing when everything is basically done for them!

A failed project that no other major developers wanted any part of is somehow viewed as easy success? The project is not in receivership... whomever acquires the site is not going to proceed with Varacalli's vision.