Guys sorry to bring 1BE back.
How the plan to build Canada's tallest condo fell apart
Triple-whammy felled original deal for 1 Bloor in Toronto's downtown core.
The chunk of downtown Toronto many call the best address in Canada – 1 Bloor – got a new owner this week as Bazis International handed the deed over to Great Gulf Homes. Behind that transaction is a tale of legal stick handling seldom (if ever) seen in Canadian real estate.
Bazis International
The original plan for 1 Bloor East, created for Bazis International.
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First, the 490 people who bought suites at 1 Bloor will get their deposits back, plus interest, the lawyers say. The paperwork has been mailed; most buyers have responded and cheques are being cut, they say.
Second, Bazis’ other projects are unaffected, say Mr. Margulies and Mr. Goodman. Crystal Blu on nearby Balmuto Street is nearing completion and Emerald Park at Yonge and Finch is 86 per cent sold and waiting for rezoning approval, a process delayed by the recent strike by City of Toronto employees.
While construction loan financing remains tight, the lawyers are confident Bazis will find a lender so it can proceed with Emerald Park.
Yes, Bazis has to swallow a hefty multimillion-dollar loss (some estimate it to be in the $30-million range) but the price paid by Great Gulf (according to the Ontario Land Registry Office it was $53-million, though none of the parties have made that public yet) clears the mortgage on the land plus a bit extra, the lawyers say, adding that
Bazis also retains an unspecified participation in whatever Great Gulf builds on the site.
Great Gulf Homes now owns the site and is working on plans for a mixed use condo-commercial project.
And finally the trio of canny real-estate veterans – more on them later – who tried to snap up the site through the back door by buying the $45-million in mortgages on it from Société Général of France are to get a cheque to pay off the loan plus $242,823 in interest arrears. (They asked for $2-million, but a judge dismissed that claim saying it would have represented a 35 per cent interest rate.)
That’s the situation now. Here’s the story of how the original plan to build an 80-storey condo tower at 1 Bloor came together – and fell apart.
More...........
http://www.theglobeandmail.com/real...adas-tallest-condo-fell-apart/article1291333/