The High Park Alhambra Church, these days, is not so much of a place of worship as an active construction site. Set to accommodate a four-storey, 70-unit condo through adaptive reuse, it’s an ambitious project that, like many others across the GTA, has been under receivership for months now.
On October 1, the Ontario courts granted approval for CB Richard Ellis Limited (CBRE) to begin the marketing and sale process for the property at 248 and 260 High Park Avenue, which sits on the border between the neighbourhoods of High Park and The Junction.
That court order also references a September 25 (sic) report from the receiver, Ernst & Young Inc., which explains that the sales process is anticipated to consist of a marketing phase followed by a two-round offer submission phase. A proposed “sales process timeline” outlined in the report shows an estimated bid deadline of November 22.
READ: Court Appoints Receiver Over High Park Church Conversion, Citing $42M Debt
Receivership Granted In May
The court-ordered sale of the High Park property comes just over four months after a receivership order was granted (on May 27) over all property, assets, and undertakings of 260 High Park Limited Partnership, TRAC Developments Inc., and 2486357 Ontario Inc. amid allegations from Meridian Credit Union of over $42.2 million in debt (as of April 9).
260 High Park Limited Partnership is described in the court documents as a single-use real estate development company formed specifically for the High Park Alhambra Church project. Meanwhile, 2486357 Ontario Inc. appears to be the owner of 248 High Park Avenue specifically, and the address on file for that numbered company matches that of Medallion Capital Group. TRAC Developments is referred to in the court documents as the “general partner” of the developer and the owner of the 260 High Park Avenue address.
Meridian’s sworn affidavit, dated May 22, explains that they entered into a demand credit agreement accepted by 260 High Park Limited Partnership on July 12, 2022. That agreement was later amended on September 25, 2023, with repayment expected less than a week later, on September 30, 2023. Pursuant to the amended credit agreement, the debtors owe just over $42,252,410 to Meridian.
Although Meridian initiated the receivership proceedings, it appears that the debtors had taken out two other mortgages including one that predated Meridian’s with Westmount Guarantee Services in the amount of $20 million. Previous to that, there was a mortgage in favour of Fiera FP Real Estate Financing Inc. and Fiera FP Real Estate Financing Fund, L.P. in the amount of $14.3 million.
In addition, construction liens clocking in at over $14 million were registered against the mortgaged lands as of March 6, 2020, according to title searches referenced in the court filings, and the debtor’s failure to clear those leans was considered “a breach of the terms of the credit agreement.”
The proposed development at 248 and 260 High Park Avenue/Medallion Capital Group, Turner Fleischer Architects
The proposed development at 248 and 260 High Park Avenue/Medallion Capital Group, Turner Fleischer Architects
Project At A Stand-Still
Construction on the 248 and 260 High Park Avenue site broke ground in November 2019, and according to a singular update provided on the project’s website, site shoring and excavation was 100% complete, formwork and concrete on parking level 1 was “well underway,” and a tower crane had been installed “allowing for full capacity construction work,” by June 2021.
By late 2023, however, work on the site had come to a halt. According to the court filings, the trade contractors abandoned the project “due to liquidity challenges and other delays.”
A September 30, 2023, report prepared by Finnegan Marshall, Meridian, and Fiera’s project monitor explains that there was an increase in the overall project budget to over $95.4 million — and that amount does not include a mezzanine loan interest reserve of around $5 million — marking an overrun of approximately $4.8 million. This was on top of the “unfunded cost overrun” cited in a previous report, which came in at around $3.7 million.
President of Developments Chris Giamou said in a statement provided to STOREYS in May that they remained “committed to seeing this condominium project through to completion despite unexpected obstacles.” He also noted at that time that the company was “exploring several avenues within the receivership that will work toward the best interests of all stakeholders,” including purchasers, sub-trades, lenders, and creditors.
“While the receiver can make the recommendation to the courts to sell the project, we don’t believe such a decision would be in the best interests of the stakeholders, and we are confident the receiver will likewise arrive at the same conclusion,” Giamou said. “We are doing everything possible to ensure that our purchasers, who voiced their confidence in TRAC’s management team, can still realize their dream of homeownership at 260 High Park.”
According to numerous reports from Ernst & Young, 64 of the 70 units within the condo planned for 248 and 260 High Park Avenue have been pre-sold to date. It’s unclear whether or not those purchase deposits will be honoured or refunded at this time.
STOREYS contacted TRAC earlier this week for comment on the sales proceedings, but a representative for the company conveyed that they are “unavailable” for comment at this time.
