ushahid
Senior Member
guys can someone make it plain and simple, whats happening?
Toronto The One | 328.4m | 91s | Mizrahi Developments | Foster + Partners
- Thread starter urbandreamer
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Miscreant
Senior Member
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Haha, yep. That's a good one.
Benito
Senior Member
Today ongoing work.
got it right
Active Member
Great shots Benito as usual. If you're a progress junkie like me, this one is going to test your patience for awhile.
jaco_says
New Member
Yes. Retail is supposed to open a year earlier than the residential. Once the podium is done they will use the roof as a staging area as well. There is an amazing podcast episode on this building, its land assembly, design, financing, etc. in the Commercial Real Estate Podcast. Look for the March 2nd episode.
Midtown Urbanist
Superstar
Well, I am not an expert, but from following this thread for the past few years, here is my basic understanding.
Mizrahi doesn't have the money to build something like this. He is a (with no negative connotation attached) an up-start developer. To undertake a project like this, Mizrahi needed to court investors.
Sometime ago, one or some of those investors walked. Seeing as construction proceeded anyway, it appeared that everything was fine with the project financing.
But, that bridge loan seems to hint that Mizrahi is unable to meet his cash flow needs for this project's construction, which is worrying.
ushahid
Senior Member
then how the hell is he affording all that? got an expensive crane, all that expensive equipment for the construction and all the work is happening at very quick pace.
Secret Agent
New Member
An even bigger concern are all of the higher end (130 condos) unsold units. The top third of this building will sit empty and dark.
innsertnamehere
Superstar
construction financing is standard in the development industry - the vast majority of builders cannot afford to build their developments with cash. even bridge financing happens regularly.
what is unusual is the public nature of the loan advertising. It means that a lot of the larger institutional lenders have probably turned away from Mizrahi, and he is looking for cash pretty desperately.
what is unusual is the public nature of the loan advertising. It means that a lot of the larger institutional lenders have probably turned away from Mizrahi, and he is looking for cash pretty desperately.
travis3000
Active Member
Not a good sign at all. This project may end up being a big hole in the ground, there must be a curse with the One Bloor address. I remember the same thing happened to the neighbour tower, and it was sold to Great Gulf and scaled down a bit. Looks like this may be a possibility here as well.
Roy G Biv
Senior Member
I think it gets capped when it hits street level just like Trump and 1 Bloor E did.
got it right
Active Member
By then it will already be way over budget. It is currently behind schedule which means contractors will have likely submitted change orders which = higher costs. As an experienced commercial GC I can tell you that speed almost always equates to dollars. CIBC Square demonstrates this perfectly.
raptor
Senior Member
Just wanted to add fuel to the fire by reminding everyone that the current building permit is only for a 3 storey commercial retail building. No mention of the rest of the 82 stories.
67Cup
Active Member
Asking for clarification here: is the ”Mortgage Deal of the Week” reproduced in post 5292 in effect an ad seeking a second mortgage for bridge funding or an announcement that such an agreement has been reached? Thanks in advance.
LMVDR
Active Member
That's obviously not a concern for Firm Capital.