After the properties were placed under receivership in June, TDB Restructuring Limited has taken next steps in respect of 3742, 3748, and 3750 Bathurst Street in Midtown Toronto, bringing on Lou Grossi of Intercity Realty to market and sell the parcels. The addresses at the southwest corner of Bathurst Street and Wilson Avenue were set to accommodate a 10-storey mid-rise and 32-storey flatiron tower, and approvals for the development were granted by City Council at its February 2024 session.
According to a listing from Intercity, this represents “a rare opportunity to acquire a prime high-rise site” and the sale would be on an “as is, where is basis” without warranties or representations from the vendor. “The Receiver’s objectives are to maximize the sale price of the property and complete a disposition with limited, or if possible, no conditions,” the listing goes on to say.
The June 18 receivership order stems from an application made in April, which collectively refers to around two dozen “individual residents of Ontario and Ontario corporations” as the lender, and an indebtedness of around $28,450,456 as of March 31, with interest, legal fees, and disbursements accruing.
Site plan/WZMH Architects
According to the application, the debtor is Grmada Holdings Inc., which is an Ontario corporation with a registered head office in Richmond Hill. Roman Zhardanovsky is the sole officer and director. Grmada doesn’t appear to have a large development presence in the Greater Toronto Area, though it was behind a pair of 60-storey towers proposed for the City of Markham in late-2023. However, a report that went to city staff in early 2024 contested the development, and it was ultimately refused.
Returning to the Bathurst Street project, a report that went to Toronto City Council in February 2024 describes a mixed-use development consisting of an 11-storey mid-rise and 30-storey tower, which was proposed in September 2024. The tower element was increased in height in response to community consultation, in which some of the participants expressed that additional floors would help to meet more housing need.
The current rendition of Grmada’s plans describe the now proposed 10- and 32-storey buildings as having a shared six- to eight-storey base, and call for building heights of around 112 and 330 feet, respectively, and a total gross floor area (GFA) of 404,077 sq. ft. Of the total GFA, around 9,181 sq. ft would be non-residential, and the remainder, at around 394,896 sq. ft, would be residential, with 479 condo units planned. The development would replace a former gas station, retail store, coffee shop, and two detached houses.
Rendering of 3736-3750 Bathurst Street/WZMH Architects
Rendering of 3736-3750 Bathurst Street/WZMH Architects
By the time the redevelopment plans received City Council’s approval in February 2024, Grmada had already made the arrangements for a loan, with a Commitments Letter dated July 10, 2023, cited in the application for receivership. The loan advanced was in the principal amount of $25,383,000. As security, Grmada put up the development property, personal property, and a general assignment of rents.
Although the loan was meant to mature on February 1, 2024, an amendment was made to the initial Commitments Letter extending the term to July 31, 2024. In the meantime, however, the debtor failed to pay interest due on May 1, 2024, putting it in automatic default. A demand letter was issued on July 25, 2024, and again on September 1, 2024, and the debtor agreed to forbear on receivership proceedings until October 1, 2024. To date, Grmada has failed to repay the loan or make further interest payments, according to the court filings.
In addition, according to an endorsement of Justice J. Dietrich, an active fire was reported to the City of Toronto Fire Services on June 8, at which time Zhardanovsky was informed, but was reportedly unwilling to address the matter.
TDB was appointed receiver over the properties shortly after that, on June 18. STOREYS reached out to Zhardanovsky for comment on the proceedings in July, but did not hear back by the time of publication.
