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Will work with The One lenders to complete an 85-story building in the heart of downtown
Published on December 12, 2024 • Last updated 2 days ago • 2 minutes reading time
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The One condominium and Hotel are seen under construction at the intersection of Yonge St. and Bloor St in Toronto on Monday, October 23, 2023. The One was intended to become Canada's first supertall skyscraper, but was placed into receivership in October 2023. Photo by Arlyn McAdorey /The Canadian Press
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The One, Toronto's ambitious luxury condominium project at Yonge and Bloor, has taken another turn as liquidator Alvarez & Marsal selected Tridel Group as development manager, construction manager and general contractor. The decision, announced in court filings Wednesday, came after months of efforts to secure a buyer or construction partner failed.
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The project, which was to be an 85-story mixed-use building, faced significant financial challenges, prompting Alvarez & Marsal to initiate a sales and investment tender process in mid-2023. When attempts to find a buyer with a minimum bid of $1.2 billion failed, the bankruptcy trustee ultimately deemed Tridel's proposal the “superior” option. The proposal would see Tridel work with The One's lenders to oversee construction of the tower.
Court documents explained the competitive nature of the bidding process, noting that “on or about July 30, 2024, the closing date for Phase 1, the Receiver and Broker received Letters of Intent (LOIs) from 11 participating bidders.” Of these, 10 delivered participating bidders submit one development proposal and one a development proposal and two forms of transaction proposals.”
In a statement, Tridel expressed excitement about working with stakeholders to revitalize One Bloor West, highlighting his extensive experience in high-rise construction and projects such as The Well in Toronto. “We are committed to creating a listed building that meets the highest standards of quality and innovation,” a spokesman said.
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Court documents detail Tridel's qualifications: “Tridel's recent applicable project experience in the Bayside Toronto Waterfront Community and Ten York demonstrates Tridel's ability to successfully complete development projects comparable to the size, nature and complexity of the project.” “
Subject to court approval and final agreements, Tridel's engagement is expected to begin in early 2025.
The financial challenges of the development have led Alvarez & Marsal to file under the Companies' Creditors Arrangement Act (CCAA) and convert the bankruptcy process into one designed to restructure debt and facilitate the continuation of the project. According to Canada.ca, CCAA is typically reserved for companies with more than $5 million in debt and provides flexibility to restructure financial obligations and modify contracts.
The project's previous construction manager, Skygrid, was appointed in March to replace Mizrahi Developments, the original developer. Since then, steady progress has been made on the tower's construction, with an additional 34 floors poured through Level 76 by the end of November, according to Alvarez & Marsal.
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The One has long been positioned as a signature project, promising luxurious amenities and architectural features. However, the path to completion was fraught with delays and financial turmoil. Despite these hurdles, senior secured lenders remain committed to financing construction to completion, provided the court grants the necessary CCAA relief and approves Tridel's role in the project.
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“The liquidator, in consultation with the broker and the senior secured lenders, is working with Tridel to complete the final documentation contemplated by the term sheet with the aim of obtaining court approval of the transaction and related remedies in the near future,” the court said documents said.
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