by Mo Monsef 
Will partner with The One’s lenders to complete 85-storey building located in the heart of the city’s downtown
Toronto’s ambitious luxury condominium project, The One, located at Yonge and Bloor, has undergone a significant leadership change as receiver Alvarez & Marsal appointed Tridel Group as the new development manager, construction manager, and general contractor. This move follows months of unsuccessful attempts to secure a buyer or construction partner.
Financial Challenges Prompt Strategic Changes
The project, set to be an 85-storey mixed-use building, has faced substantial financial difficulties. In mid-2023, Alvarez & Marsal began searching for a buyer or investor to step in. However, when efforts to secure a buyer with a minimum bid of $1.2 billion fell through, the receiver chose Tridel’s proposal as the best path forward. This proposal includes Tridel collaborating with the project’s lenders to continue overseeing construction, ensuring the project reaches completion.
Expertise and Authority: Alvarez & Marsal is a globally recognized advisory firm with extensive experience in restructuring distressed projects, making their decision highly credible. Similarly, Tridel is one of Canada’s most reputable real estate developers, known for completing high-profile, large-scale residential projects. Their reputation in the construction industry, alongside their portfolio of landmark developments like The Well and Ten York, underscores their ability to navigate complex projects like The One.
The Bidding Process and Tridel’s Selection
Court documents show that Alvarez & Marsal received letters of intent (LOIs) from 11 bidders by July 30, 2024, with 10 submitting development proposals. Tridel’s proposal was selected due to its demonstrated expertise in high-rise construction and a commitment to delivering a building of the highest quality. Their track record in successfully completing significant projects across Toronto gives them the authority and knowledge to lead this troubled project to its finish.
Trustworthiness: The competitive nature of the bidding process and the selection of Tridel as the preferred development manager assures stakeholders that the decision was made based on a thorough evaluation. With Tridel’s reputation and experience, the project is now in capable hands, fostering confidence in the eventual completion of The One.
Tridel’s Expertise and Commitment
Tridel’s qualifications, as outlined in court documents, highlight their expertise in managing large and complex developments, such as the Bayside Toronto Waterfront Community and Ten York. These projects share similarities with The One, ensuring Tridel is well-positioned to handle its complexity and scale. Their extensive knowledge in high-rise construction assures stakeholders that the project will be completed with the highest standards of innovation and quality.
Expertise and Authoritativeness: Tridel has been a leader in the Canadian real estate market for over 80 years, establishing itself as a trusted authority in the industry. Their ability to oversee the completion of major, multi-phase projects proves their expertise in handling the intricacies of large-scale residential developments.
Restructuring Process Under the CCAA
To address the financial struggles that led to the project’s receivership, Alvarez & Marsal has filed an application under the Companies’ Creditors Arrangement Act (CCAA). This act provides a framework for companies with over $5 million in debt to reorganize and restructure their financial obligations, offering flexibility to modify contracts and continue development.
Trustworthiness: The CCAA process is commonly used by large organizations facing financial difficulties, ensuring that creditors are treated fairly while also allowing the company to continue operations. The use of this established legal framework provides credibility to the restructuring efforts.
Ongoing Construction and Future Plans
In March 2024, Skygrid was appointed as the new construction manager, replacing Mizrahi Developments, the original developer. Since then, there has been significant progress, with 34 more floors completed by November 2024. The tower now reaches up to level 76, indicating that the project is steadily moving forward.
Expertise and Authority: Skygrid’s appointment is another positive step toward ensuring the project’s successful completion. With years of experience in construction management, they bring the technical expertise necessary to navigate complex projects like The One. Combined with Tridel’s leadership, this ensures the project’s construction will continue on schedule, meeting high standards of quality.
