Whether you’ve bought into 1Bloor or not, it seems like everyone wants to know if it will ever get built. It’s been the hot topic of discussion amongst those in the condo community for almost a year now! Whenever I’m asked (at least 3 times a week) my answer is always the same “We’ll have to wait on Bazis to publicly announce their plans” and that day my friends is coming VERRRY soon! Reason being, Bazis is about to reach a crucial due date. One in which they’ll have 3 choices: Build, Not build or Ask for another extension from buyers (the last scenario also gives purchasers the option of backing out). The internet chat boards have been flowing with rumours (and a few facts) about the fate of the project. It’s appropriate to state from the start the purpose of this post is to share the stories I’ve heard and that I in no way know what the actual outcome will be… the only person who does know is Michael Gold, the developer. Ladies and gentlemen I present to you the story of 1Bloor…

Thanks to everyone who has asked me about 1Bloor.  I’ve posted an update which can be read here.It was fall of 07 and the corner of Yonge and Bloor was covered for days with realtors lined up at Toronto’s newest gem known simply as 1Bloor. It was to be built by Kazakhstan developer Bazis and designed by Roy Varacalli (the same people behind Crystal Blubeing built around the corner). The 81 story building was slated to be the new anchor for the popular Yonge and Bloor corner. For months prices were advertised to start at $300,000, garnering the interest of many and attracting them to live at the centre of the city. I remember telling clients how amazing these prices were for a project of this stature. Some believed, but most shrugged it off as just another condo. Sure enough on the day of the brokers VIP, a man in a ‘cherry picker’ went in front of an anxious crowd and plastered a new price over the existing. The new sign now read “starting at $500,000″!! (Side note: after all the media coverage at the event, the phone was ringing off the hook with buyers trying to get in…Even with the increase)

Prices aside, the launch went significantly well and Bazis sold a TON of units during the event. Many criticised the project for raising prices on the day of, but what the public should understand is that these kinds of price hikes aren’t uncommon. Developers always start with “make you look” prices and as more units sell, they slowly raise the price. Personally, I think the price they jumped to was a bit steep and they should have at least waited until those in line had finished the purchase. It should also be noted that a lot of units were sold even before the broker sales event making the increase justified (and not just another greasy sales tactics as some were implying). Never the less, just like at a Toronto Maple Leaf game, the crowd went wild and thus started the beginning of a love hate relationship with 1Bloor.

I first thought something was wrong shortly after they demolished the buildings on the Yonge and Bloor corner. Instead of continuing to dig down, they filled the holes back up. My thinking was “why do double the work…you’ve already started digging down, keep going” (there may be some technical procedure that I’m just not aware of when it comes to condo building. My apologies if I’m wrong). Then came the financial fallout of ’08 with one of its biggest victims being Lehman Brothers. Not only were they one of the largest sources for new development financing worldwide, they were also on title with Bazis for the property. A BIG PROBLEM! With Lehman Brothers bankrupt, 1Bloor was now left with no financing AND a bankrupt company on title! It was around this time that the rumours started swirling. A five star hotel was also planned on the site. No names were ever officially announced, although Sofitel Hotel was rumoured to manage it at one point. Speculation that the project was cancelled started hitting the online forums and buyers demanded answers from Bazis fast. The answers were coming slow and never in full detail. At one point there was a rumour that a ‘European Teachers Fund’ had saved the project and was going to provide financing. Publicly, nothing was ever announced and no names were given. Ultimately nothing ever came of this ‘white horse’. Its likely Bazis will continue having issues with financing until the Lehman Brothers are taken off the title (a process they’re currently going through in the USA legal system).

Just recently, Toronto Star columnist Christopher Hume ran an articleon other potential uses if the condo wasn’t built. Although many of his suggestions would look better then what’s currently there, I dislike the idea of a site zoned for 81 stories turned into a park! (Btw if built 1Bloor would be almost half the size of the CN Tower) Things were looking positive about a month ago when equipment started showing up on site. Sadly, those hopes were quickly squashed once it was discovered that the site was being used as temporary storage for equipment used in a nearby Bazis project. And so we wait… by July 16th 2009 answers will be given. Personally, I like the project. I think it’s exactly what that strip of Bloor needs. The amount of revenue and jobs it would create would be HUGE for the city. Just think how many “Miller Taxes” could be collected at occupancy alone…not to mention the yearly property tax from a building of this height! Sources have said the project will be built and that financing is in place BUT until Bazis gives it’s official announcement and states who will be financing the project…I wouldn’t start buying condo furniture!!

I’ve been updating this story as it evolves.  Check out my latest updates!!

I’d love to hear others stories and comments on the project, especially if you’ve bought in to it! Feel free to leave your thoughts below.

Related Posts: