After being placed under receivership last December, the Grandview Tower project in Markham, Ontario has officially been sold, according to filings in Ontario Superior Court.
The project was set for 7115 Yonge Street plus 8, 10, 12, and 14 Grandview Avenue; a 0.95-acre site on the eastern side of Yonge Street between Meadowview Avenue and Grandview Avenue, about three blocks north of Centerpoint Mall.
The site consists of a vacant parcel of land and four single-family lots that Terra Bona Developments Ltd. was planning to redevelop. The original proposal was for a 36-storey condo tower with 443 units before it was later revised — following an appeal to the Ontario Land Tribunal — to one 49-storey tower and one 46-storey tower, with a grand total of 873 residential units.
For the project, Terra Bona — through Terrabona 7115 Yonge Ltd. — secured a first-ranking mortgage from Toronto-based Empirical Capital Corp. in October 2022 for the principal amount of $31,000,000, with interest accruing at the greater of 10.25% per annum or the RBC Prime Rate + 4.80%.
The loan was guaranteed by Majid Tavakoli and Majid Tavakoli Holdings Ltd.
According to loan documents filed in the proceeding, the purpose of the loan was to repay existing mortgages, fund a partner buy-out, and pay various fees. The existing mortgages that were taken out with the loan consisted of $15,777,261 owed to Forgestone Capital, and $4,311,000 owed to MarshallZehr.
The Receivership
According to court documents, Empirical Capital first initiated the receivership proceedings in November 2024 after Terra Bona defaulted on the loan when they failed to make an interest payment in May 2024.
Terra Bona then provided a proposal that would see them take out a second mortgage and make a significant paydown to Empirical in exchange for extending the maturity date of the loan from July 2024 to August 2025.
However, Empirical says Terra Bona was unable to secure that financing, and Empirical made a formal demand for payment in September 2024. The borrower was still unable to pay, and Empirical subsequently initiated the receivership proceeding, saying they were owed $33,419,371,06 as of January 1, 2025, with interest continuing to accrue.
The original proposal (left) and current proposal (right) for 7115 Yonge Street and 8-14 Grandview Avenue in Markam. (Arcadis)
“I verily believe the Debtor is insolvent and unable to fulfil its obligations to the Lender and the other creditors,” said Empirical in an affidavit. “It does not appear to have the financial capability to proceed with the since May of 2024 and the Debtor appears to be unable to make any payment on account of the Loan.”
Before the receivership application was granted, however, the two sides entered into a forbearance agreement delaying enforcement until June 2025. According to the forbearance agreement, the developer was in discussions with Metrolinx at the time about three temporary easements, and was also awaiting a 13-day OLT hearing in May 2025.
However, Terra Bona defaulted on the forbearance agreement, they were still unable to repay the loan, and the receivership application was recommenced and granted on December 1, 2025.
The Sale
In late-January 2026, the court-appointed Receiver then retained Lennard Commercial Realty to list the property, with Peter DeGuerre, Joshua Perlstein, and Paul Campbell serving as the listing team, beating out proposals by Cushman & Wakefield, CBRE, and Colliers.
“This offering represents a rare opportunity to acquire a high-density, transit-oriented development site with a Yonge Street address,” said Lennard Commercial Realty in its sales brochure. “With full approvals secured through the Ontario Land Tribunal (OLT) Order (Case No. OLT-24-000601) issued Nov 12, 2025, the site offers a rare opportunity to develop a landmark high-rise development in this highly accessible and sought-after North York corridor.”
According to a report prepared by the Receiver dated September 11, 2026, Lennard marketed the property, 28 interested parties reached the point of signing a confidentiality agreement, and a total of seven offers were received.
In June, the Receiver entered into a sale agreement with 2158046 Ontario Inc., which waived its conditions on August 19. The true purchaser was not identified, but a copy of the sales agreement included in court filings was signed by Shane Baghai, a luxury condo developer operated by the company’s namesake.
The purchase price was not disclosed, but the Receiver said Empirical was owed $39,167,304.23 as of August 24, 2026 and said “It is anticipated that Empirical will suffer a shortfall,” suggesting the purchase price was lower than the outstanding debt.
Comparable transactions Lennard cited in a report included the sales of 7-17 Nipigon Avenue for $26,623,000, the sale of 26-34 Nipigon Avenue for $19,350,000, and the sale of 41-47 Hendon Way for $15,350,000, all of which occurred in 2024 and 2025.
The sale to 2158046 Ontario Inc. was approved by the Ontario Superior Court on September 22.
