A New Chapter Unfolds as Tridel Group Takes Over as Development Manager
The troubled luxury condominium project at Yonge and Bloor, known as The One, has taken another significant turn. Receiver Alvarez & Marsal has selected Tridel Group to take over as development manager, construction manager, and general contractor. This decision comes after months of efforts to secure a buyer or construction partner failed to yield results.
Background on the Project
The One was initially envisioned as an 85-storey mixed-use building, promising luxury amenities and architectural distinction. However, its path to completion has been marked by delays and financial turbulence. Despite these challenges, senior secured lenders remain committed to funding construction through to completion, provided the court grants the necessary relief.
The Bidding Process
The receiver initiated a sale and investment solicitation process in mid-2023, with a minimum bid of $1.2 billion. When attempts to find a buyer failed, Alvarez & Marsal deemed Tridel’s proposal as the ‘superior’ option. The proposal involves Tridel partnering with The One’s lenders to oversee the tower’s construction.
Court documents outlined the competitive nature of the bidding process, noting that 11 participating bidders submitted letters of intent (LOIs) on or about July 30, 2024. Of these, ten delivered a development proposal, and one delivered both a development proposal and two forms of transaction proposals.
Tridel’s Experience and Qualifications
Tridel Group has significant experience in completing large-scale development projects. Their recent applicable project experience at Bayside Toronto Waterfront Community and Ten York demonstrates their ability to successfully complete projects comparable in size, nature, and complexity to The One.
Pending court approval and finalized agreements, Tridel’s engagement is expected to begin in early 2025.
Restructuring Debt Under CCAA
The development’s financial challenges have led Alvarez & Marsal to file an application under the Companies’ Creditors Arrangement Act (CCAA). This process allows for restructuring debt and modifying contracts, providing flexibility for companies with more than $5 million in debt.
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, with an additional 34 floors poured through level 76 by late November, according to Alvarez & Marsal.
The Future of The One
The One’s future is now tied to Tridel Group’s successful completion of the project. With the new partnership in place and pending court approval, it remains to be seen whether this development will finally achieve its promise as a signature luxury condominium tower.
Recommended Reading:
- "The One receiver seeks at least $1.2 billion in sale"
- "What’s going on at The One, Toronto’s troubled $2-billion mega-tower?"
