Under Receivership, Vandyk’s Grand Central Mimico Hits The Market

The Vandyk Group of Companies has been slammed with (at least) half a dozen separate receivership orders over the past five months, and probably the most high profile of the bunch involves Grand Central Mimico: an over two-acre, transit-oriented, high-rise development site at 23 Buckingham Street in Etobicoke.

Since receivership proceedings were instigated back in November — and finalized in January — Grand Central Mimico has made headlines due to its link to the Mimico GO, with recent coverage from the CBC saying that Metrolinx “quietly terminated its agreement” with Vandyk around the same time the company’s financial woes were publicized, leaving Etobicoke residents “staring at a hole in the ground.”

But there may finally be a way forward from all of this — not for Vandyk, but for the site itself.

The Ontario courts granted formal approvals for the sales of ten Vandyk-affiliated sites on March 8, and amongst them was the Grand Central Mimico. The court documents also revealed that Jones Lang LaSalle (JLL) Real Estate Services would be handling the sale of the the Mimico site (in addition to the sale of Vandyk’s King's Mill site at 15 Neighbourhood Lane, which is also on the market), and that the brokerage was to work with the receiver, KSV Advisory, to market the property ahead of taking bids.

It’s worth noting that, having "undergone preliminary excavation", the Grand Central Mimico property is further along than most of the other properties formerly owned by Vandyk. According to consolidated report prepared by KSV, construction has only commenced at Uptown (approximately 28% constructed) and King's Mill (substantially constructed). Construction has not yet started on the remainder of the sites named in Vandyk's slew of receivership orders, including 41 Wabash (in Toronto) Heart Lake and UPtowns (in Brampton), and Ravine and Lakeview (in Mississauga).

“Excellent” Development Opportunity

A listing that went live this week on the JLL website notes that 100% freehold interest in 23 Buckingham Street is up for grabs, and that the property provides "an incoming purchaser the flexibility to resume construction in the near-term with existing plans, or conceptualize a new development design.”

JLL also notes that the property already has zoning approvals in place to permit a “scalable, mixed-use project, known as 'The Buckingham,' which features three towers distributed across a four-storey commercial podium.”

Further details on the contemplated development include: approximately 586,000 sq. ft of gross floor area (GFA), 20,085 sq. ft of retail GFA, 50,052 sq. ft of of office GFA, 515,548 sq. ft of residential GFA, and 749 residential units.

“The Site is ideally situated in a rapidly growing area of South Etobicoke, which is currently undergoing a significant transformation and will form one of Toronto’s newest transit-oriented communities,” the listing goes on to say.

“With planned local intensification in the coming years surrounding Mimico GO Station, the area is set to become a pedestrian-friendly, mixed-use community with a wide array of amenities, including several retail options and parks. The Property represents an excellent opportunity for [a] developer to acquire a high-density development of scale directly across from Mimico GO Station.”

King’s Mill Up For Grabs

As mentioned, JLL is also handling the sale of Vandyk’s King’s Mill site at 15 Neighbourhood Lane, and that listing went live last week. Again, the listing stipulates “100% freehold interest” of the property, which comprises a “partially constructed, mid-rise residential project” within the Backyard Neighbourhood Condos development near the intersection of Park Lawn Road and The Queensway in South Etobicoke.

This project is on the cusp of its third and final phase of development, and upon completion, will include 186,446 sq. ft of residential gross floor area and 234 residential units of varying sizes and layouts.

“The site has undergone significant work to date, including substantial completion of the building structure, which topped out at 10 storeys and has underground parking in place,” the listing adds. “A purchaser will have the opportunity to complete the development within an accelerated timeline, wherein project risks are significantly mitigated.”

JLL also notes that the King’s Mill condominium is approximately 91% sold out to date, and that “sales contracts can be maintained or cancelled at the incoming developer’s discretion.”