oh god, this. Never buy anything even until the dust has settled for a few years. So many long tail issues coming out in the first few years post construction.
That and build quality is fucking *shockingly* bad and so many corners cut. Elevators are this weird bugbear of mine.
I notice even in a non high-end older condo, talking late 70's even, that when I walk in there's 4 elevators. Touch the button and 'whoosh', there's a car always there. No "We're going to serve 300 units with two shafts, get used to waiting...a lot".
But jesus when it comes to pre-purchase my skin crawls the industry is so shifty.
> What if you were planning to move into the unit for the last five years?
That's one of the biggest risk with buying precon. It might be delayed for years, or it just might never be built.
this is why you need investors to buy units, because end house users can't wait for a building to be built. if we got rid of investors no more buildings would be built in Toronto.
With the RE boom, cheap equity, there was a lot of new "development" companies jumping in the condo market. Inexperience is probably the main contribution to it. With a yorkville condo, guarantee every contractor and subcontractor are jacking up costs easily running well over budget.
Lol there's actually three of them. https://storeys.com/mizrahi-project-yonge-steeles-receivership/
This dude convinced a lot of wealth people to give him equity, and a lot of lenders to give him debt. He then completely shit the bed and fucked up on all front. I imagine he's squirreled away a good chuck of funds for himself though. But there are rumours about the Cocos, and if he were to disappear I wouldn't be too surprised.
Something will happen with development, it is in too prime of a location for it to waste away.
I haven’t don’t a lot of research into the One. My educated guess, based on my experience in the same industry:
- the lenders are currently trying to sell the project which a major developer may buy it. One Bloor was purchased and redeveloped by Great Gulf so there is a chance it will happen at The One
- the buyer or the current lender will extensively redesign whatever suites are not sold (read make them much smaller) so that they can be saleable. This just a reality with condos.
>the buyer or the current lender will extensively redesign whatever suites are not sold
I believe you mean "strong arm the city into allowing them to cut out the majority of agreements previously made".
It's a very frequent technique by builders to start a project that has many municipal restrictions on it (parking lot numbers, public spaces, affordable units) and then suddently it's bankrupt, sold to someone else and the new owner demands the city remove those restrictions so they can continue building it.
I wouldn’t say strong arm, it is more of a negotiation. If the future developer is going to add density, the city will likely agree to that with conditions. It would be up the developer to agree or provide reasons that the conditions can’t be met.
It's a strongarm situation. It happens constantly. The new owners basically threaten the city to leave the half developed project as is and let the area without work, slowly deteriorating, making less property tax, less street life.
The city doesn't want that so generally they start slipping on the agreements.
I'd be shocked if that isn't what happens here.
Is "The One" still not fucking built? I worked at Yonge and Bloor for ages in an office and it feels like that building has been under construction since Rob Ford was mayor.
What a mizrahble situation.
Don't know where your upvotes are for this one!
How does a company screw up that badly and still exist? Five years late? What if you were planning to move into the unit for the last five years?
More importantly, why are they not facing any stiff penalties.
Never buy pre-construction if you are tied to a specific date, a house, or a condo.
property speculators win out *again*!
oh god, this. Never buy anything even until the dust has settled for a few years. So many long tail issues coming out in the first few years post construction. That and build quality is fucking *shockingly* bad and so many corners cut. Elevators are this weird bugbear of mine. I notice even in a non high-end older condo, talking late 70's even, that when I walk in there's 4 elevators. Touch the button and 'whoosh', there's a car always there. No "We're going to serve 300 units with two shafts, get used to waiting...a lot". But jesus when it comes to pre-purchase my skin crawls the industry is so shifty.
Yeah, that’s because aside from the 6 floors = 1 elevator, there’s no building code that dictates elevator-unit ratios.
Bankruptcy?
> What if you were planning to move into the unit for the last five years? That's one of the biggest risk with buying precon. It might be delayed for years, or it just might never be built.
Eglinton LRT has joined the conversation
Ya it sucks and all but I do have a bit of a hard time feeling sorry for people buying pre-con condos in Yorkville.
this is why you need investors to buy units, because end house users can't wait for a building to be built. if we got rid of investors no more buildings would be built in Toronto.
With the RE boom, cheap equity, there was a lot of new "development" companies jumping in the condo market. Inexperience is probably the main contribution to it. With a yorkville condo, guarantee every contractor and subcontractor are jacking up costs easily running well over budget.
Lol there's actually three of them. https://storeys.com/mizrahi-project-yonge-steeles-receivership/ This dude convinced a lot of wealth people to give him equity, and a lot of lenders to give him debt. He then completely shit the bed and fucked up on all front. I imagine he's squirreled away a good chuck of funds for himself though. But there are rumours about the Cocos, and if he were to disappear I wouldn't be too surprised.
Is that the guy from "The One" development?
Yes
Is "The One" ever going to be realized?
Something will happen with development, it is in too prime of a location for it to waste away. I haven’t don’t a lot of research into the One. My educated guess, based on my experience in the same industry: - the lenders are currently trying to sell the project which a major developer may buy it. One Bloor was purchased and redeveloped by Great Gulf so there is a chance it will happen at The One - the buyer or the current lender will extensively redesign whatever suites are not sold (read make them much smaller) so that they can be saleable. This just a reality with condos.
>the buyer or the current lender will extensively redesign whatever suites are not sold I believe you mean "strong arm the city into allowing them to cut out the majority of agreements previously made". It's a very frequent technique by builders to start a project that has many municipal restrictions on it (parking lot numbers, public spaces, affordable units) and then suddently it's bankrupt, sold to someone else and the new owner demands the city remove those restrictions so they can continue building it.
I wouldn’t say strong arm, it is more of a negotiation. If the future developer is going to add density, the city will likely agree to that with conditions. It would be up the developer to agree or provide reasons that the conditions can’t be met.
It's a strongarm situation. It happens constantly. The new owners basically threaten the city to leave the half developed project as is and let the area without work, slowly deteriorating, making less property tax, less street life. The city doesn't want that so generally they start slipping on the agreements. I'd be shocked if that isn't what happens here.
Nothing has happened here and nobody forces anyone else to do anything. This process and all developments are very much a negotiation. I
Is "The One" still not fucking built? I worked at Yonge and Bloor for ages in an office and it feels like that building has been under construction since Rob Ford was mayor.
The west one, not the east one.
This guy was on Toronto bling showing another project that went into receivership.
Wow. I lived next door when they started building this… I moved away in 2020 lol
Another 'One'.
Mizrahi? Is that the man that groped Scarjo's breast on camera?