Graywood Buys Yonge–Eglinton Site From First Capital REIT

A large transit-oriented development near the intersection of Yonge Street and Eglinton Avenue Westchanged hands just prior to the new year and will be taking a new form, according to updated application documents.

The subject site is 34-70 Montgomery Avenue, one block north of the Toronto Public Library’s Northern District Branch and about a five-minute walk away from Eglinton Station.

The land assembly consists of 13 parcels occupied by a row of single-family homes and duplexes between Yonge Street and Duplex Avenue.

For the site, Toronto-based First Capital REIT (TSX: FCR.UN) had previously submitted a development application for a 24-storey mixed-use tower with 306 residential units and around 5,600 sq. ft of ground-level retail space.

According to its 2025 annual report published last month, however, First Capital sold a 100% ownership interest in 34-70 Montgomery Avenue in Q4 2025 for $42 million. They did not disclose the purchaser, but application documents and transaction info confirm that the site was acquired by Toronto-based Graywood Developments.

The Project

In a letter to the City of Toronto dated September 26, 2025, planning firm Bousfields Inc. said they were submitting revised materials on behalf of Graywood Developments and Graywood Montgomery Limited Partnership “in an effort to continue to address the OLT conditions, as well as comments received from City staff on the Zoning By-law Amendment application, and to advance the Site Plan Approval application.”

According to Bousfields, First Capital REIT submitted a rezoning application and site plan approval application in June 2022. The application was then appealed to the Ontario Land Tribunal (OLT) in June 2023, approved in principle afterwards, and is now being revised.

Ground-level renderings of the proposal for 34-70 Montgomery Avenue. (Turner Fleischer, Graywood Developments)

The height of the building is being increased from 24 to 27 storeys, while the unit count is being increased from 306 units to 335 purpose-built rental units. The suite mix consists of 16 studio units, 157 one-bedroom units, 125 two-bedroom units, and 34 three-bedroom units. The total proposed residential floor area is 256,698 sq. ft.

The second level of underground parking and all visitor parking have been eliminated. The previous proposal was for 124 vehicle parking spaces and 348 bicycle parking spaces, while the new proposal is for 86 vehicle spaces and 179 bicycle spaces. Notably, the previously-planned ground floor retail space has been completely eliminated.

Designed by Turner Fleischer, the tower would be located closer to the eastern end of the site, nearer to Yonge Street, and sit atop a podium that extends to the corner of Montgomery Avenue and Duplex Avenue. The design of the tower has also been changed substantially from the previous proposal, which was designed by RAW Design and saw the tower closer to the corner of Montgomery and Duplex.

The previous proposal for 34-70 Montgomery Avenue. (RAW Design, First Capital REIT)

First Capital REIT

In 2025, First Capital REIT completed a grand total of $176 million in dispositions, with $67 million across two sales completed in Q4. As First Capital said the Montgomery sale was for $42 million, this means their other Q4 sale, 801 York Mills & 1855 Leslie Street, was for $25 million.

At York Mills and Leslie, First Capital had previously proposed two 21-storey condo towers above a shared podium, then revised the proposal down to two 15-storey buildings, before most-recently changing the proposal entirely to three commercial retail buildings, according to a cover letter dated September 30, 2025.

“Due to the current economic conditions respecting high-rise developments, FCR has been unable to successfully market the mixed-use development and, as such, is proceeding with a retail and service commercial development at this time, which is permitted by the as of right zoning applicable to the site through By-law 569-2013, as amended,” said Bousfield on behalf of First Capital.

The new owner is currently unknown.

Last year, First Capital REIT also sold the project planned for 895 Lawrence Avenue East in North York to Bazis International for $32 million, as previously reported by STOREYS. According to their year-end press release, First Capital has three more sales set to close throughout 2026.

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Graywood Buys Yonge–Eglinton Development Site From First Capital REIT For $42M

​The sale of 34-70 Montgomery Avenue was completed last year, and Graywood has since submitted a new application for the site.

The Project

First Capital REIT

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The sale of 34-70 Montgomery Avenue was completed last year, and Graywood has since submitted a new application for the site.

The proposal would see Onni Group redevelop the Regency Gardens apartment complex near Whalley Athletic Park into five mid-rise buildings and seven high-rise buildings.

LJM Developments completed the LJM Tower at 2782 Barton St E last year, but many buyers did not close on their presales. LJM has also defaulted on several other loans.

The partnership between the federal and provincial governments will see Build Canada Homes contribute $170 million, and BC Housing contribute $640 million.

The venue’s parent company was placed under receivership in 2023, with almost $10.5 million owing to TD.

The guide is designed for those without a formal background in real estate development, but with an interest in densifying their own home or investment property.

Once occupied, 141 Bay Street will be home to organizations spanning institutional investment, banking and financial services, legal and professional services, and natural resources and mining.

Peterson is revising the plan for 6800 Lougheed Highway after Burnaby introduced a new OCP and height-based development framework.

"Ontario can do much better. It should be doing much better. And there's no reason why the next 25 years need to feel like the stagnation of the last 25. We really need a mindset change in this province. We can lead the world."