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

Wrenkin said:
??? I've been here for three years. You're just being childish at this point.
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Since you're such a veteran, you should have known that when you post about how I don't make any sense, be prepared for a rebuttal. Don't like it....go back to lurking then.
 
cliffy said:
any thoughts on the wind effect on street level?
Will the tower be directing wind down to the atrium?
any unique features in the tower that will address that?
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I was thinking about that too. The tallest building in the city so far over a 1000 feet. Borders close to the sidewalk not mention the street corner. It makes you wonder if they did a wind tunnel test for that area. I hate to see cracked falling glass rain down on the intersection. You have think about pedestrian safety too not mention a tight canyon effect in that intersection.
That why I think the highrise part of the building should be set back. Possibly on a 22 1/2 degree angle from both streets. With an eight storey podium in front for the department stores. It would look sharp!
 
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Historic Yonge St By-law from February 11, 2015 states:

During the period of one year from the date of enactment of this by-law (the "Study Period"), no person shall:

"alter or permit the alteration of any property situated in the Historic Yonge Street Heritage Conservation District Study Area..."

"erect, demolish or remove or permit the erection, demolition or removal of any buildings or structures within the Historic Yonge Street Heritage Conservation District Study Area"


If I am reading this correctly, nothing will happen here for a year.

Staff report on the by-law.
 
greenleaf said:
Historic Yonge St By-law from February 11, 2015 states:

During the period of one year from the date of enactment of this by-law (the "Study Period"), no person shall:

"alter or permit the alteration of any property situated in the Historic Yonge Street Heritage Conservation District Study Area..."

"erect, demolish or remove or permit the erection, demolition or removal of any buildings or structures within the Historic Yonge Street Heritage Conservation District Study Area"


If I am reading this correctly, nothing will happen here for a year.

Staff report on the by-law.
Click to expand...

Actually I don't think so.. I think in this particular case the city is rushing to designate this building under part IV..

Interesting paragraph from the document:

The recent demolition of 1 Bloor Street West (Stollerys) illustrates the inadequate level
of existing heritage protection for properties that are not listed or designated within an
HCD study area. Since that demolition three more demolition permits have been applied
for within the study area and two have been released. The third, a listed building, can
only be protected from demolition if heritage staff can research and evaluate the property
for Part IV designation, and report to the Toronto Preservation Board and City Council,
within 60 days of the owner supplying all the required materials accompanying a notice
of intention to demolish a listed building. The practical reality of this is that staff time
and resources will have to be redirected from planned studies to emergency reviews.

I'm going to assume that since 774 Yonge is currently designated Part V, this paragraph is referring to it... it might not be, but if it is it's a race against the clock... I wonder when Mizrahi submitted the demolition permit for this building.

I would hate to see facadism here.
 
Stupidandshallow said:
Actually I don't think so.. I think in this particular case the city is rushing to designate this building under part IV..

Interesting paragraph from the document:

The recent demolition of 1 Bloor Street West (Stollerys) illustrates the inadequate level
of existing heritage protection for properties that are not listed or designated within an
HCD study area. Since that demolition three more demolition permits have been applied
for within the study area and two have been released. The third, a listed building, can
only be protected from demolition if heritage staff can research and evaluate the property
for Part IV designation, and report to the Toronto Preservation Board and City Council,
within 60 days of the owner supplying all the required materials accompanying a notice
of intention to demolish a listed building. The practical reality of this is that staff time
and resources will have to be redirected from planned studies to emergency reviews.

I'm going to assume that since 774 Yonge is currently designated Part V, this paragraph is referring to it... it might not be, but if it is it's a race against the clock... I wonder when Mizrahi submitted the demolition permit for this building.

I would hate to see facadism here.
Click to expand...


he hasn't closed on the purchase of 774 yet
 
greenleaf said:
Historic Yonge St By-law from February 11, 2015 states:

During the period of one year from the date of enactment of this by-law (the "Study Period"), no person shall:

"alter or permit the alteration of any property situated in the Historic Yonge Street Heritage Conservation District Study Area..."

"erect, demolish or remove or permit the erection, demolition or removal of any buildings or structures within the Historic Yonge Street Heritage Conservation District Study Area"


If I am reading this correctly, nothing will happen here for a year.

Staff report on the by-law.
Click to expand...

I don't think this applies to properties that have already been granted a demolition permit though. The permit for 774 Yonge is currently 'under review' according to this: http://app.toronto.ca/ApplicationStatus/details.do?folderRsn=3688717
 
I believe that you are correct; it should be go-forward for any new demo permits here. Otherwise, this would be setting a precident!
 
For easier reference, I've pasted below the text from the report posted by WW. There's alot of interesting detail about the development in there. If you're really interested in the financials, it's still worth checking out the report linked to above, as there are some interesting charts which I could not copy.

Canadian REIT
(REF.UN-T) C$44.24
First Reveal of Plans for One Bloor West
Event
CREIT's partner revealed detailed plans for the development project at 1
Bloor Street West.
Impact - NEUTRAL

 The proposal calls for an 80-storey tower that would be Canada's tallest.
The plans represent density in excess of 30x, which is higher than we
had expected, and nearly double that of recently-approved comparable
development projects.

 Mr. Sam Mizrahi of Mizrahi Developments proposes an aggressive
timeline, targeting completion of the first phase (retail component) in
three years.

 The planned column-free spacing enables the utmost of flexibility in
interior design. This, together with the property's strong location and
access, should result in premium pricing being achieved on leasing and
sales, in our view.

 We continue to see CREIT's investment in the project as a well-secured
loan, with equity conversion rights, on arguably one of the best urban
development sites in Canada.

TD Investment Conclusion

We view CREIT as a core holding, and continue to expect attractive
unitholder returns, with less volatility than its peers. In our view, investors
can continue to expect solid growth in both AFFO and NAV over the long
term, backed by CREIT’s disciplined and conservative approach. We are
reiterating our BUY recommendation and $54.00 target price.

Details

Large-Scale Plans Revealed

During the evening of March 11, CREIT's partner, Mizrahi Developments,
hosted a public consultation meeting to reveal for the first time the detailed
plans for the mixed-use development project at 1 Bloor Street West in
Toronto. The current design, at 80 storeys and over 1,000 feet, would be
Canada's tallest residential or commercial tower. The plans also represent
density (lot coverage) in excess of 30x, which is nearly double that of recently-approved comparable
development projects.

While reducing the project's size can bring the density ratio more in-line, we believe another possibility is the
acquisition of 15 Bloor and also possibly 19 Bloor, which would expand the land assembly by nearly 50%.
Despite the project's large scale, Mr. Sam Mizrahi and his team from the Foster + Partners architectural firm
received overwhelming support from most people at the meeting (which we attended), including local area
residents, nearby luxury shop owners, and the head of the local residents association.

The project's retail component is 168,000 sf over 8 levels, and the residential component is 560 suites on 72
floors.

Aggressive Timeline

The project will likely be built in two phases – first the retail, public atrium, and parking, and the residential
after that. Mr. Mizrahi is targeting early 2018 for retail tenants to take occupancy.

Design Attractiveness

Through the use of “exoskeletal†structural supports (similar to H&R REIT's 'The Bow' in Calgary, which was
also designed by Foster + Partners), all interior spaces will be column-free, allowing greater design flexibility.
Ceiling heights in the retail spaces will range up to 22-feet.

Mr. Mizrahi sees the retail spaces being occupied by several tenants, including fashion, restaurants, and other
categories (e.g Apple). A large, high-end department store is not in the current plans. Similar examples of
multi-level urban retail projects include 900 North Michigan Shops in Chicago (6 levels), and the Westfield
San Francisco Center (6 levels).

Project Economics

In Exhibit 1, we provide our updated estimation of the project's valuation. We can see potential for stabilized
valuation on completion to reach $1.3 billion. One critical success factor is the retail leasing, in our view. We
believe One Bloor West can achieve premium pricing, given its unique location and design elements.

As discussed in our Action Note dated November 10, 2014, the cost of this land assembly represents near alltime
high pricing. We believe premium pricing is justified by the property's location. access attributes, and
potential for higher approved density. CREIT's $110 million investment is in the form of two loans: a first
mortgage, and a half-interest in a second mortgage that is further backed by guarantees from a partner. While
the investment represents just 2% of the REIT's total assets, it could represent substantially more upon
completion if CREIT exercises its right to acquire a 27.5% equity interest. We see CREIT's investment as a
well-secured loan, with equity conversion rights, on arguably one of the best urban development sites in
Canada.

In assessing the project's ability to support CREIT's investment, we looked at a range of possibly sizes and
densities (Exhibit 3). We extrapolated and made some tweaks from the assumptions shown above in Exhibit 1.
At the proposed plans, we see strong value support, with the land investment representing just 13% of total
value. At the more conservative end of the range, we see potentially slightly less support, but still more than
sufficient in our view with the land cost at 20% of total value. As mentioned earlier, successful leasing of the
retail spaces is critical to the project's value-creation.

Outlook

We remain confident that CREIT's investment in One Bloor West is well-secured.

We anticipate solid AFFO/unit growth from CREIT. After an expected temporary slowdown in H1/15 (in part
driven by a Calgary office tenant vacancy), we see AFFO growth resuming at a solid pace, resulting in a twoyear
CAGR of 4% through 2016. We believe that occupancy in the industrial segment stands to rise this year.

There are only two Target locations (plus one warehouse) aggregating just 0.3% of gross rent. In 2015, we
believe that AFFO growth will be driven by developments and acquisitions, while NOI growth resumes its
positive contribution in 2016. Please see our November 20, 2014 Action Note for our assessment of CREIT’s
robust development pipeline.

Valuation

CREIT is trading at 16.1x 2015E P/AFFO multiple, compared with the 15.7x average for Canadian diversified,
office, and retail REITs.

Justification of Target Price

We derive our $54.00 target price using an 18x–18.5x F2016E P/AFFO multiple, compared with the 15.7x
current peer group average on F2015E. It also translates into ~16% premium to our NAV estimate of $46.50.
Our target multiple takes into consideration what we view as CREIT’s long track record of stable and growing
cash flows, 13-year history of consecutive increase in cash distributions, arguably conservative financial
strategy, and our view of growth prospects in the next few years.

Key Risks to Target Price

The REIT is subject to the risks common to commercial real estate investing, including general economic
conditions (including interest rates, unemployment levels, and the availability of long-term mortgage funds);
local real estate markets; excessive competitive supply; space demand; and tenant credit risk.
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Big Daddy said:
A lease is a lease - you can't make a tenant leave just because you want the space.
And why would HBC surrender the hottest location in town?
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It's called buying back the lease. The owner of the space can do whatever the heck they choose to. If HBC gets a big cheque to sell back the lease then yes they will do it.
 
A lease buy-back is a term used for car leasing and refers to the owner buying back the leased vehicle at a predetermined value at the end of the lease term.

The owner of building space cannot do whatever the heck they choose. the tenant has the right of quiet enjoyment of the the rights they have secured under the lease.

If the two parties decide to negotiate an early termination, that's up to them, but short of breaching their lease, the tenant can stay to the end of the lease term.

If the lease is coming due in say three or four years and it appears unlikely (or undesireable) that they will get a renewal, then it make make sense for the tenant to negotiate an early termination since it is at this time the value of the termination is greatest.

However, if HBC wants to stay to the end of their lease they can do so.
 
Big Daddy said:
A lease buy-back is a term used for car leasing and refers to the owner buying back the leased vehicle at a predetermined value at the end of the lease term.
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A property owner can do the same. They can always make an offer to buy back the lease if they want to. Obviously it won't come cheap. I'm not saying this will happen or that Brookfield would even entertain the idea. You're implying that it is impossible for a property owner to get away from it. If ever HBC got a big enough payment from Brookfield they will walk out.
 
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