- What Tridel will become construction manager of distressed skyscraper The One
- Why No qualified buyers were found during the sales process
- What next New hotel and restaurant operators will be sought out
Tridel has been chosen to complete the development of Toronto’s highest-profile distressed project: The One.
The decision, made by receiver Alvarez & Marsal, follows a sales process of the under-construction skyscraper at 1 Bloor Street West that ended with no qualified bidders at the $1.2bn asking price.
Tridel will assume the project from SKYGRiD, which had been appointed as construction manager earlier this year by the receiver after embattled co-owner Sam Mizrahi was taken off the project.
Tridel will be paid on a fee-for-service basis to complete the construction, development and realization of value from The One. The developer also will receive an advance payment of $2.3m plus HST.
Tridel’s success completing other large-scale projects including The Well, Bayside Toronto and the 65-storey condominium tower Ten York factored into the decision.
A development proposal submitted by Tridel outlined value-maximizing strategies for the tower, including redesigned concepts for some of the unbuilt residential units. The receiver had previously suggested some of the larger, unsold units that are yet to be built be divided into smaller apartments to help secure sales.
As of the end of November, tower slabs for 76 of the planned 91 storeys had been poured, with windows installed up to the 49th floor.
New hotel, restaurant operators
In addition to the residential condo units, a restaurant component and an Andaz-branded hotel were planned for The One. The receiver, however, plans to terminate the in-place agreements for both.
The agreement with Hyatt Hotels, which owns the Andaz brand, will be disclaimed, and Tridel has agreed to conduct a process to select a new operator of the hotel component.
It is possible that the selected hotel operator will rebrand the residential component of the tower, the receiver said.
Similarly, the agreement with restaurant operator King Street will be reneged, and a new food-and-beverage operator will be found.
