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Real Estate News

Former Cresford Condo Tower Prepares for Winter Launch With New Developer

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A former Cresford condo tower, located just south of Bloor in one of Toronto’s most sought-after downtown neighbourhoods, is preparing for an upcoming winter launch with a new developer.

The tower, now aptly named Gloucester on Yonge, is one of the three condo towers that went into receivership under Cresford Developments last year. This week Concord Adex — a subsidiary of Concord Pacific — announced it will bring the Gloucester on Yonge to the market this winter.

The newly acquired (and rebranded) tower was formerly Cresford’s The Clover on Yonge and is located just north of Yonge and Wellesley Street East, near Gloucester Street.

Concord Adex’s new, 44-storey development will have a “rare” underground connection to neighbouring Wellesley TTC station and will be the first residential development in the country to use the developer’s BioSpace virus and bacteria mitigation systems.

READ: Three Downtown Cresford Condo Developments Go into Receivership

“The development is in a super prime location. Not many Torontonians will be able to boast a direct subway connection directly to their homes. It’s a mere elevator ride to your secured access corridor and you are on the platform” said Isaac Chan, Concord Adex Vice-President of Sales and Marketing.

“It also represents a high walking score, located just steps from City’s finest dining, culture and shopping in Yorkville and minutes away from Toronto’s financial district and top Canadian Universities including the University of Toronto and Ryerson University.”

Cresford

Concord Adex – Gloucester on Yonge

The tower will also feature new “timely” enhancements, with a dedicated package delivery room added. Common space Wi-Fi coverage was greatly enhanced, and most importantly, Concord’s BioSpace systems with enhanced air filtration and a “touchless journey” for residents from the curb to the suite entry door.

This system even includes mobile eCall to summon elevators as well as HEPA filtration for the development’s most fixed and vulnerable spaces. The development will also benefit from a new cohesive design throughout the building and to the street front.

Cresford

Concord Adex – Gloucester on Yonge Condo Tower Toronto

Last March, three of Cresford Development’s condo developments entered into receivership, according to documents filed by the receiver, PricewaterhouseCoopers Inc. This included 33 Yorkville, The Clover on Yonge (593 Yonge Street), and Halo Residences (480 Yonge Street).

All three buildings were under construction and were set to account for over 1,600 residential units to be added to Toronto’s housing stock.

Court documents posted by PwC include allegations of separate ledgers kept by the developer where one set was shown to lenders and another set included additional costs. However, these allegations have not yet been proven in court.

The applicants for receivership cited defaults by Cresford on lending agreements, according to court documents. These include an overdue interest payment and liens on the properties, as well as projected cost overruns.

In court filings, the applicants claim the developer owes payments on a $164 million mortgage, according to the Toronto Star.

However, this isn’t the only legal issue the developer has faced so far this year. Last January, Maria Athanasoulis, Cresford’s former president, filed a 33-page wrongful dismissal claim that alleged Cresford has a “crash crisis.”

As per a Globe and Mail article at the time, in her claim, Athanasoulis alleges Cresford needs close to $150-million to finish these projects. She is seeking close to $50-million in compensation, saying she is owed 20% from the uncompleted condominium projects.

According to the Globe and Mail, Cresford’s chairman, Daniel Casey, has since made a counterclaim, which alleges that Athanasoulis “exaggerated the size and urgency of Cresford’s payables and cost overruns,” and is seeking millions in damages for her alleged mismanagement.

None of those allegations have been tested in court.

“The Gloucester development’s continued momentum and stable future was secured with a significant investment of funding and intellectual capital from Concord over the past year,” explained Terry Hui, Concord Pacific Group President and CEO.

“The project was originally developed by Cresford Developments and went into receivership spring 2020. Concord restructured the project through a CCAA plan of arrangement that received overwhelming support from all the creditors that includes the original purchasers who bought condominiums from Cresford.”

Gloucester on Yonge is set to hit the Toronto market with sales in the next month.

With files from Christina Varga

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