[Editor's Note: A previous version of this article incorrectly identified Republic Developments as the owner of 1266 Queen Street West. They were the developer of the property, but not the owners.]
A large high-rise project set for the Queen West neighbourhood of Toronto has changed hands, with real estate developer and investment manager Carttera acquiring the project after it was initiated by Republic Developments.
The site of the project is 1266 Queen Street West, directly adjacent to the Parkdale Amphitheatre at the intersection of Queen Street West and Dufferin Street, as well as the Canadian Pacific Railway tracks. The property is currently occupied by an old low-rise commercial building.
Earlier this week, Carttera announced that they had acquired the site in a transaction brokered by Jeremiah Shamess of Colliers. The property is now held under 1266 Queen Street West GP Inc.
The property was previously owned by DKI Queen Inc., who retained Republic Developments as a consultant on the project.
"In what continues to be a challenging and highly selective market for development sites, getting this deal across the finish line is something our entire team is proud of," said Republic Developments in their own announcement this week. "It speaks to the value of the asset, the resilience of good real estate, and the strength of relationships that make these transactions happen."
Transaction details were not disclosed by either party, but Carttera acquired 1266 Queen Street West from DKI Queen Inc. for $27,900,000 on June 6, according to transaction info from commercial real estate intelligence firm Altus Group.
According to City of Toronto records, the project has been in the works since at least April 2023, when Republic submitted the original application. The original proposal was for 25 storeys and 381 residential units, before being reduced to 23 storeys and 329 units in October 2023.
Another set of revised plans was submitted to the City earlier this year by Carttera, which was the first indication that the project was changing hands. Carttera's proposal is now for a 27-storey tower with 362 units, with all of the residential units now proposed as rentals instead of condos. A planning rationale prepared by Batory Planning + Management cites the federal government's elimination of GST on new rental construction and the City of Toronto's reduced property tax incentive as some of the reasons for the pivot to rental.
Notably, although the number of floors has been increased, the height of the tower remains exactly the same as the previous proposal, which was approved in July 2024.
The 362 rental units are split between 197 one-bedroom units, 128 two-bedroom units, 36 three-bedroom units, and one four-bedroom unit. Carttera's proposal eliminated all of the studio units and reduced the number of one-bedroom units, while increasing the amount of family-sized units.
Other changes include the building podium being reduced from five to three storeys, the tower floorplate being increased, the amount of indoor and outdoor amenity space both being increased, and the number of vehicle and bicycle parking spaces both being reduced.
BDP Quadrangle remains the architect of the project, and the firm will be targeting LEED Silver certification as a minimum and Zero Carbon certification from the Canadian Green Building Council.
"The revised development continues to make efficient use of underutilized commercial land located within a Settlement Area and within 500 metres of the future Liberty Village GO Station – areas explicitly designated for intensification by the Provincial Planning Statement (2024)," the planning rationale states. "The revised proposal conforms with the objectives of the Built Form and Public Realm policies of the Official Plan, being designed to fit within its surrounding context, transition appropriately to and limit overlook, sky view, wind, and shadow impacts on adjacent properties. The proposal is also consistent with the general intent and direction of the relevant Design Guidelines."
In a cover letter submitted along with its revised proposal, Carttera said that it is hoping to complete the Site Plan Control application by Q4 2025 so it can commence construction on the project in Spring 2026.
