1,082 Foot Condo Misses $1.6B Loan Halfway Thru Construction - Toronto

[Economy 52,837]

https://www.google.ca/amp/s/globalnews.ca/video/10041205/torontos-the-one-condo-project-in-financial-disarray-with-building-nowhere-near-complete/amp/

 

"The One" was supposed to be the tallest residential tower in Canada at 330 metres (1082 feet). Tho a few taller buildings exist, none are residential.

 

(Yellowish beije illustration is "The One")

 

 

Halfway thru construction, the developer misses a $1.6B loan payment to investors

 

Ppl who made deposits are  nervous if their condo will be delivered and construction companies who supplied materials questioning if they will get payed

[Tyler1992 2,340]

This was supposed to have a flagship Apple Store! 

[Taylucifer 5,249]

oops, missed my billion dollar payment, I'll transfer you later x 

[OMF 3,649]

5 minutes ago, Tyler1992 said:

This was supposed to have a flagship Apple Store! 

They pulled out due to delays and uncertainty. 

[Guest]

33 minutes ago, Taylucifer said:

oops, missed my billion dollar payment, I'll transfer you later x 

"can i make a payment arrangement?"

[Economy 52,837]

35 minutes ago, Taylucifer said:

oops, missed my billion dollar payment, I'll transfer you later x 

Imagine

[Economy 52,837]

35 minutes ago, Aussie said:

They pulled out due to delays and uncertainty. 

 

41 minutes ago, Tyler1992 said:

This was supposed to have a flagship Apple Store! 

Looks like apple made the right call

[monstertoronto 11,734]

I followed this project for a while. It’s a good location and I like the idea of having a great view. But none of the units had any outdoor space which is a deal breaker. Now it looks like it’s going to be disaster for buyers. I ended up buying something else, not a condo. and I don’t think I would ever do pre-construction now. 

[Economy 52,837]

15 hours ago, monstertoronto said:

I followed this project for a while. It’s a good location and I like the idea of having a great view. But none of the units had any outdoor space which is a deal breaker. Now it looks like it’s going to be disaster for buyers. I ended up buying something else, not a condo. and I don’t think I would ever do pre-construction now. 

Personally im too afraid of preconstruction to ever buy one (assuming i ever manage to buy a condo)...

 

But i will also say the location is too prime and the building already too far into construction to just abandon it like that. I dont think the city would even allow it.

 

If the developer cant complete it or sell the project, i suspect the city will take over and find another buyer, and if necessairy sell it at a discount should no buyer want to pay market value for it. 

 

It would just be too much of a disaster to leave a half finished building there permanently in such a core city area. So i think ppl will get their units. What may happen unfortunately is significant delays (which already have occured, but even more)

[monstertoronto 11,734]

1 hour ago, Economy said:

Personally im too afraid of preconstruction to ever buy one (assuming i ever manage to buy a condo)...

 

But i will alsp say the location is too prime and the building already tpo far into construction to just abandon it like that. I dont think the city would even allow it.

 

If the developer cant complete it or sell the project, i suspect the city will take over and find another buyer, and if necessairy sell it at a discount should no buyer want to pay market value for it. 

 

It would just be too much of a disaster to leave a half finished building there permanently in sucu a core city area. So i think ppl will get their units. What may happen unfortunately is significant delays (which already have occured, but even more)

I hope you’re right. It’s such an unusual situation given how it’s so underway.  
I have a friend hawk bought a different precon condo and had his deposit with them for years and then they cancelled it and said they would give deposits back but with no interest and so he was now priced out of the market and the developer just relaunched at the new much increased prices. 

[Economy 52,837]

13 hours ago, monstertoronto said:

I hope you’re right. It’s such an unusual situation given how it’s so underway.  
I have a friend hawk bought a different precon condo and had his deposit with them for years and then they cancelled it and said they would give deposits back but with no interest and so he was now priced out of the market and the developer just relaunched at the new much increased prices. 

Its a perfect storm of surging labor costs (wages for construction workers have surged cuz of shortage) and inflation on material costs has also been high. Ive read that construction costs have risen as much as 40%.

 

Also loan costs have risen cuz of rising rates assuming the rates taken put werent fixed rates

 

Many projects are now running at losses so im not shocked this happened

 

Also the tough part to sell will be the scale too. Most developers are not capable of taking on a project of this size/scale and capital costs.

 

I have no doubt if the developer bails the city will make sure its finished. But finding an alternative developer may take time