A Toronto-based developer has acquired a downtown development site that's going to end up being a very lucrative acquisition.
Last month, Graywood Developments closed its ninth private real estate development fund and used part of the proceeds to buy a Toronto development site -- that currently houses an Esso gas station and a Circle K convenience store -- which it plans to rezone in order to build a residential tower.
The site, which is located at 241 Church Street, on the northeast corner of Church Street and Dundas Street, was initially purchased by Couche-Tard as part of a portfolio acquisition. At the time, it had been valued at about $4 million during the portfolio purchase, according to Real Estate News Exchange (RENX).
However, when Graywood made its acquisition four years later, the value of the site had escalated tremendously and is now valued at $73 million, according to RENX.
Graywood raised $100 million from Canadian financial institutions, pension plans, family offices, and high-net-worth individuals for Graywood Fund IX Limited Partnership. That is in addition to the $495 million raised through the company’s first eight funds.
"We are very pleased with the support we received from our existing and new investors particularly given the uncertainty faced in the global economy in 2020," said Stephen Price, President and CEO of Graywood.
"With Fund IX, we believe we are well-positioned to continue to pursue the development of residential properties in the GTA, including for-sale and rental projects, a strategy we have successfully executed since our founding in 1985."
Graywood says it plans to redevelop 241 Church Street into a 53-storey high-rise tower with approximately 570 residential units and retail at-grade. RENX wrote that the proximity to the Ryerson University campus, places of employment, and great Walk and Transit Scores were favourable attributes of the site.
Currently, things are still in the preliminary design phase, and Graywood said is exploring whether to build a condominium or purpose-built rental apartment.
However, the site is zoned for mixed-use and work is underway to apply for rezoning to help bring Graywood’s vision to life, says RENX.
“We’ve received very favourable feedback from the city as to their acceptance of our preliminary development plans,” Stephen Price, president and CEO of Graywood Developments, told RENX.
Graywood currently has 13 active projects with 4,200 residential units under development, representing $3 billion in development value. During its 35-year history, Graywood has managed 51 projects, representing $7 billion in development value and more than 29,000 units.