Following its receivership in December, the Grandview Tower project in Markham, Ontario has been officially sold, as reported by documents from the Ontario Superior Court.
The site is located at 7115 Yonge Street and includes 8, 10, 12, and 14 Grandview Avenue; a 0.95-acre area on the east side of Yonge Street between Meadowview Avenue and Grandview Avenue, roughly three blocks north of Centerpoint Mall.
This property features an empty lot along with four single-family homes that Terra Bona Developments Ltd. aimed to redevelop. Initially, the plan was for a 36-storey condominium tower with 443 units, which was later modified-after an appeal to the Ontario Land Tribunal-to include one tower with 49 stories and another with 46 stories, totaling 873 residential units.
For this project, Terra Bona-via Terrabona 7115 Yonge Ltd.-obtained a first-ranking mortgage from Toronto’s Empirical Capital Corp. in October 2022 for $31,000,000 at an interest rate of either 10.25% per year or the RBC Prime Rate +4.80%, whichever is greater.
The loan was backed by Majid Tavakoli and Majid Tavakoli Holdings Ltd.
Loan documents filed during the process reveal that the funds were intended to pay off existing mortgages, finance a partner buyout, and cover various fees. The current mortgages included debts of $15,777,261 owed to Forgestone Capital and $4,311,000 owed to Marshall Zehr.
The Receivership
As per court records, Empirical Capital began receivership proceedings in November 2024 after Terra Bona defaulted on their loan by missing an interest payment in May of that year.
Terra Bona proposed taking out a second mortgage to make a substantial payment to Empirical in exchange for extending the loan’s maturity date from July 2024 to August 2025.
However, Empirical claimed that Terra Bona couldn’t secure that financing; they made a formal demand for repayment in September 2024. When Terra Bona still couldn’t pay up, Empirical proceeded with receivership actions stating they were owed $33,419,371.06 as of January 1, 2025-with interest continuing to accumulate.
The original proposal (left) and current proposal (right) for 7115 Yonge Street and 8-14 Grandview Avenue in Markham. (Arcadis)
“I verily believe the Debtor is insolvent and unable to fulfil its obligations to the Lender and the other creditors,” stated Empirical in an affidavit. “It does not appear to have the financial capability to proceed since May of 2024 and the Debtor appears to be unable to make any payment on account of the Loan.”
Before receiving approval for receivership application though both parties entered into a forbearance agreement that postponed enforcement until June 2025. Under this agreement it was noted that discussions were ongoing between developers and Metrolinx regarding three temporary easements while waiting for a OLT hearing scheduled for May 2025 lasting thirteen days.
Nevertheless when Terra Bona defaulted on this agreement due repayments remained unpaid leading again into commencing hearings which led up granting finalization on December first two thousand twenty-five.
The Sale
At end-January twenty-sixteen court-appointed Receiver engaged Lennard Commercial Realty listing property; Peter De Guerre Joshua Perlstein Paul Campbell comprised listing team beating proposals Cushman & Wakefield CBRE Colliers respectively.
Lennard Commercial Realty’s sales brochure stated: “This offering represents a rare opportunity to acquire a high-density transit-oriented development site with a Yonge Street address.” It also mentioned full approvals had been secured through Ontario Land Tribunal (OLT) Order issued November twelfth , two thousand twenty-five providing outstanding chance develop landmark high-rise within accessible North York corridor” p >
According report prepared Receiver dated September eleventh , two thousand twenty-six Lennard marketed property attracting twenty-eight interested parties signing confidentiality agreements ultimately producing seven offers received overall p >
In June Receiver finalized sale agreement settled conditions waived August nineteenth true purchaser remains unidentified but copies sales agreement court filings signed Shane Baghai luxury condo developer associated company p >
Although purchase price wasn’t disclosed Receiver noted amounts owing amounting thirty-nine million one hundred sixty-seven thousand three hundred four dollars eighty-three cents August twenty-fourth indicating shortfall anticipated suggesting selling price lower outstanding debt p >
Lennard’s cited comparable transactions reports included sales seven seventeen Nipigon avenue twenty-six million six hundred twenty-three thousand dollars sale twenty-six thirty-four nipigon avenue nineteen million three hundred fifty-thousand dollars forty-one forty-seven hendon way fifteen million three hundred fifty-thousand dollars all occurring within timeframe spanning two-thousand-twenty-four two-thousand-twenty-five p >
The sale involving two-hundred fifteen eight zero four six ontario incorporated approved September twentieth conducted superior court p >
Source link
