Just three months after the Ontario courts placed 3775-4005 Dundas Street West under receivership, the monitor has retained Colliers International to broker a sale of the site. The 1.28-acre property was being developed by real estate developer and asset manager TAS, which, early last year, opted to diversify its portfolio to include more urban industrial properties, citing more opportunity and less competition in that area.
TAS’s plans for the site included a 13-storey, mixed-use building designed by SvN, with 297 rental apartment units, 16,721 sq. ft of commercial space at grade, and 228 parking stalls in a three-level underground parkade.
The listing from Colliers describes the site as being successfully rezoned, but pending Site Plan Application approval to construct a maximum of 243,740 sq. ft of gross floor area (GFA) between Lambton Kingsway and Baby Point. The property additionally boasts 307 feet of frontage along Dundas Street West and is less than a 20-minute walk (three-minute drive) from the Lambton Golf and Country Club.
Specs:
- Address: 3775-4005 Dundas Street West
- Lot size: 1.28 acres
- Approvals: Rezoned site, pending Site Plan approval for 243,740 sq. ft of GFA
- Area pricing (condos): Meeting or exceeding $1,200 psf
- Sales inquiries: Colliers International (Jeremiah Shamess, Matthew Soper, Steve Keyzer, and Tim Bristow)
Founded in the 1980s, Toronto-based TAS is well known for its work on high-profile residential projects like 2 Tecumseth Street and 880 Eastern Avenue. Despite reemphasizing its commitments to its urban industrial portfolio, TAS still has nine residential projects in various stages of the development pipeline, according to its website.
Property Linked To $17.5M Debt, Failed Attempt To Sell
The receivership order over 3775-4005 Dundas Street West, issued on March 6, 2025, stems from an application made by Cameron Stephens Mortgage Capital on December 11, 2024, which describes indebtedness exceeding $17.5 million and a failed attempt to sell.
According to the December 11 document, Cameron Stephens entered into a conditional loan agreement on April 19, 2021, which contemplated a loan facility of up to $22,500,000. The total loan amount consisted of a $16,262,500 tier I land loan and a $6,237,500 tier II pre-development loan. Repayment of the loan facility was forecasted within 12 months and was secured against a $27,000,000 first-ranking mortgage against the Dundas West property.
Cameron Stephens’ first advance came ten days later, on April 29, 2021, but TAS “subsequently” opted to cease the redevelopment in an effort to sell the property instead. As such, the property was listed for sale by Colliers that December, and an offer from an undisclosed purchaser for $38,000,000 was accepted, with a closing date set for July 5, 2022. That arrangement ended up falling through.
In the meantime, Cameron Stephens extended the loan repayment deadline to August 1, 2022, with the first purchase offer in mind, and then ended up extending it again to February 1, 2023, to give the borrower more time to secure a sale.
This was followed by third and fourth amendments to the commitment agreement to renew the loan further, one of the conditions of which was that TAS sell its stake in the 299 Campbell Avenue project, which is a completed and occupied 14-storey purpose-built rental, and use the proceeds to provide a $3,000,000 paydown – $2,000,000 per the third amendment and $1,000,000 per the fourth – on the outstanding loan.
On October 29, 2024, TAS advised that it was not in the position to make its payments, and on November 18, 2024, Cameron Stephens issued a demand for payment, which stated the total indebtedness to be around $17,017,038, together with any additional costs and with additional interest accruing at around $4,328 per day. By March 6, the indebtedness had climbed to around $17,505,744.
Meanwhile, a March 6, 2025, endorsement from Justice Cavanagh makes note of the fact that the Dundas West property has not been listed for sale since the failed sale transaction in 2022. This is despite the fact that TAS retained Cushman & Wakefield in November 2024.
When pressed about the matter, TAS’s Chief Investment Officer Khan Tran told the courts that, “Given the market turbulence over the last two years, there has been very limited transactions generally in the market, so having a structured sale process within that context would likely result in effectively failed processes.” In response, Justice Cavanagh concluded that, “This is the failure of the borrower to make diligent efforts since 2022 to sell the Property by publicly listing it for sale.”
When contacted for comment on the proceedings this past March, a spokesperson for TAS confirmed that the sale of 299 Campbell Avenue was closed at the end of February 2025, but declined to comment further.
