- What Alterra Developments and Mahogany Management are developing a 705-unit rental project in Scarborough
- Why CreateTO identified the city-owned site for residential development in 2019
- What next The developers are awaiting final approval on their plans from City Council
Alterra Developments and Mahogany Management filed revised plans last week for a 705-unit rental building in Toronto’s Scarborough region, pushing forward a project that has been five years in the making.
Alterra and Mahogany, in partnership with CreateTO, the city’s real estate arm, are looking to redevelop 777 Victoria Park Avenue into two 12 and 34 storey towers.
A total of 256 rental units will be made affordable, with 103 of those designated as supportive units, while the remainder will be offered at market rate. The development will also contain a retail component, a childcare facility and a community centre.
“I think there are so many reasons for us to be proud of what we’re trying to achieve here, but to be in a position to have a 10,000 sq ft daycare that we’re going to lease to a provider for a nominal rent is super exciting,” Stuart Wilson, president of Alterra, told Green Street News.
The rental units will range from one to three bedrooms. Residents will have access to several amenity spaces including a co-working lounge and terraces.
The two buildings, separated by a courtyard with pickup and dropoff zones, were designed by Sweeny&Co Architects. They will be clad in white panelling with pops of pink, purple and copper added throughout via window glazing and panelling.
CreateTO first identified the city-owned site for residential development in 2019, initially proposing 508 rental units across 11- and 23-storey towers. Alterra and Mahogany were officially awarded the project in early 2020 and signed a 99-year land lease with the city in 2021. (The lease is currently being updated to reflect the revised project.)
Affordable housing projects are notoriously difficult when it comes to financial feasibility. The additional units, Wilson said, made the project pencil out after factoring in the delays and rising costs that came during the pandemic.
“When you look at these affordable housing projects, they’re really fabulous for everybody — it’s what we need as a community,” Wilson said. “But the market units play a subsidizing role for the affordable units. Unlike other RFPs that have been issued by the province, the city’s RFP model was 50% affordable and 50% market, so with the challenges that were presented during and since the pandemic, it turned out that we needed more market units to make sure we can still provide the 250 affordable units.”
Alterra and Mahogany are now in the process of submitting an application to CMHC for construction financing. Wilson also notes the project would not have been possible without the federal and provincial governments’ removal of GST and PST on new rental units.
“We’ve had different incentives from different levels of government to make this work, but it’s really like putting a jigsaw puzzle together,” Wilson said. “It’s not a normal development. Everyone has to contribute, and everyone has to pay for part of the success.”
The most recent iteration of the design received a minor variance approval from the Committee of Adjustment, allowing for the additional 197 units, and is now awaiting the final green light from City Council.
Work is expected to start in Q2 of next year, with occupancy following roughly four years later.
