Toronto The One | 328.4m | 91s | Mizrahi Developments | Foster + Partners

Blitz901 said:
Yup, I'm going to say I called this. The Globe and Mail just published,

The One project, located in Toronto’s upscale Yorkville neighbourhood, has now accumulated over $1.5-billion of charges encumbering the lands, with CERIECO ranking last. The lawsuit alleges that “this is in excess of the project’s fair market value, even if construction is completed. As such, even if the project is sold or enters a receivership, the proceeds will be insufficient to repay CERIECO.”
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*Yawn*....Just another article out of hundreds published with content like this. Yet it moves at regular pace as opposed to "sluggish". There is a thread for this in the real estate section, please post it there as we've seen these kind of posts over and over again in this thread and it doesn't effect the project at all.
 
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Blitz901 said:
Yup, I'm going to say I called this. The Globe and Mail just published,

The One project, located in Toronto’s upscale Yorkville neighbourhood, has now accumulated over $1.5-billion of charges encumbering the lands, with CERIECO ranking last. The lawsuit alleges that “this is in excess of the project’s fair market value, even if construction is completed. As such, even if the project is sold or enters a receivership, the proceeds will be insufficient to repay CERIECO.”
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They are literally pouring a floor every 7 days. How is that sluggish
 
Collingwoodbuildinglover said:
They are literally pouring a floor every 7 days. How is that sluggish
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It's not, but yet we will continue to see a member come to this thread once a month and say "I just read an article about how this project is in trouble, told you guys this is reason why it's moving so slow..." and this it will continue to move at a perfectly normal pace.
 
I do think there are probably some wacky financial deals going on here - I think you'd need a lot of unorthodox financing to build a project like this if you aren't one of the big established players in Toronto - but the article is about one of the lenders suing their Canadian legal counsel, not Mizrahi. This article is not a smoking gun about how construction is going to stop right this moment.

I do think the sentiment of "See, I told you!" is not particularly helpful, either. Let's all hope that this project gets finished - we don't want a massive unfinished eyesore at the corner of Yonge and Bloor for potentially decades.
 
Parkdalian said:
I do think there are probably some wacky financial deals going on here - I think you'd need a lot of unorthodox financing to build a project like this if you aren't one of the big established players in Toronto - but the article is about one of the lenders suing their Canadian legal counsel, not Mizrahi. This article is not a smoking gun about how construction is going to stop right this moment.

I do think the sentiment of "See, I told you!" is not particularly helpful, either. Let's all hope that this project gets finished - we don't want a massive unfinished eyesore at the corner of Yonge and Bloor for potentially decades.
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It will get finished. EVEN if there is legal battles going on, they will be in court for years while the building gets finished.
 
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Tl,dr: As for the prospects for this building, this is probably another nothing burger.
 
Property values only go up especially in Toronto. Once this is finished and it becomes an Icon in Toronto, its potential market value will be well north of $2B. Stuff like this happens all the time.
 
Mercenary said:
Property values only go up especially in Toronto. Once this is finished and it becomes an Icon in Toronto, its potential market value will be well north of $2B. Stuff like this happens all the time.
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For the lead investors the only option they have is to see this project finished and unit sales closed, even if it means sinking more money into this. That is the only way they can recoup some or they hope all of their investments. Of course some of the subordinated investors like the subject of the linked article may get shafted and end up with nothing and they is why they are suing their reps for getting them into this.
 
These kind of financial issues and litigation are not "nothing burgers" and can absolutely impact the project. Once litigation starts a level of uncertainty gets associated with the project. Different parties no longer cooperate and in order to secure additional financing (or draw down existing lines) one needs cooperation. If litigation starts impacts a lenders priority, they get spooked and new lenders are also likely to get spooked away. It may all work out, because as mentioned previously, everyone has an interest in getting the project completed, but if a new lender (or existing lender providing a draw down) feels their payback priority may be impacted, they will run, especially if there are substantial cost overruns. For the folks that think this project will only escalate in value, please remember that it is a condo and most of the suites are likely pre-sold. If values go up, unit holders will get that benefit, not the developer who has already sold out.
 
Midtown Hank said:
These kind of financial issues and litigation are not "nothing burgers" and can absolutely impact the project. Once litigation starts a level of uncertainty gets associated with the project. Different parties no longer cooperate and in order to secure additional financing (or draw down existing lines) one needs cooperation. If litigation starts impacts a lenders priority, they get spooked and new lenders are also likely to get spooked away. It may all work out, because as mentioned previously, everyone has an interest in getting the project completed, but if a new lender (or existing lender providing a draw down) feels their payback priority may be impacted, they will run, especially if there are substantial cost overruns. For the folks that think this project will only escalate in value, please remember that it is a condo and most of the suites are likely pre-sold. If values go up, unit holders will get that benefit, not the developer who has already sold out.
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To clarify, for the prospect for this building in getting built, this is probably another nothing burger. I didn’t say anything about the litigation in of itself.
 
The terms and conditions of cost overruns are usually stated explicitly within contracts. Really only two things to possibly be concerned with, one or more of the partners becomes insolvent, or the cost of completion is more than the value that can be recouped. From what has been stated neither condition currently exists. There is a third condition where a party doesn't like the contract they have entered, however failing the meet the terms of the contract will likely cause litigation against them for all damages.
 
A little hazy but I’m sure it’s there.
What three words - if you are looking for the shooting location. ///login.trump.windfalls
The red & white roof is here. ///fuzzier.bottomless.crane. How appropriate.
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