- What CMHC has inked its largest apartment-construction loan for a Toronto project
- Why Oxford obtained the loan for a 1,285-unit development in Scarborough
- What next Ground broke this week, with completion expected in 2029
Oxford Properties has secured a $650m loan through CMHC’s Apartment Construction Loan Program, the program’s largest ever for a Toronto project, Green Street News can reveal.
The fixed-rate loan will help fund the construction of Alta, a multi-tower, 1,285-unit purpose-built rental development in the Scarborough region. The development, which broke ground on Tuesday, will cost some $750m, and it’s the largest single-phase PBR project under construction in the city.
Alta represents the first phase of Oxford’s master-planned redevelopment of the Scarborough Town Centre. The plan envisions a mixed-use community of more than three dozen buildings built across 89 acres surrounding the mall. Once complete, the development will have roughly 10,000 residential units.
Alta, at 25 Borough Drive, will comprise three high-rise towers of 35, 41 and 45 storeys on a 3-acre site on the west side of the mall. They will have a mix of 51 studios and 693 one-bedroom, 411 two-bedroom and 130 three-bedroom apartments. Of those, 268 will be affordable units.
The single-phase development also includes 12,000 sq ft of retail space and a 22,000 sq ft public park. Construction is expected to be complete in 2029.
The announcement follows a series of major Canadian investments from Oxford, with roughly $2bn of activity in the last six weeks alone. This includes the $730m acquisition of Canada Pension Plan’s stake in a seven-building Western Canada office portfolio.
Prior to that, Oxford and CT REIT announced a joint $200m investment to retrofit a pair of Midtown Toronto office buildings. The deal was anchored by a 550,000 sq ft, 20-year office lease with Canadian Tire.
Scarborough has seen substantial interest from purpose-built rental developers, particularly for high-density projects. Cando Apartments recently filed plans for a 1,339-unit development at the intersection of Sheppard Avenue East and Kennedy Road.
In April, Choice Properties REIT advanced plans for a 17-storey, 290-unit development near the Warden subway station. Hazelview Investments, meanwhile, is looking to build 50 storeys with 590 units at Sheppard Avenue East and Victoria Park Avenue.