About 200 people who bought condo units in an Etobicoke high-rise project may lose their homes after the development was placed into court-ordered receivership due to massive financial problems.
The project, still only about 15 per cent complete six years after it was first marketed to potential buyers, will now be sold off by the receiver in a bidding process.
The buyers who paid for the pre-sold condos — 208 of the project’s 242 units — will get their combined $6.3 million in deposits back. But the condos they bought and waited years to move into will likely be sold off at much higher current market values by whomever steps in to complete the project.
Some of the original buyers had purchased their units as far back as 2011 when Toronto home prices were about half of what they are today.
Development’s collapse financially ‘devastating’ to many buyers
Toronto condo lawyer Denise Lash says many of those buyers may now find themselves priced out of the market.
“It can be devastating” she told CBC Toronto, adding if they want to buy their units from the new developer, it’s likely “they have to purchase at 2017 prices, not the prices they paid [years earlier].”
Lash says while “it’s rare” for condo projects to fail in Toronto’s red-hot housing market, buyers should always “research the developer. There are resources … do your due diligence when you’re buying.”
The project, proposed by Terrasan 327 Royal York and marketed through its sister company Stanton Renaissance, is located on Royal York Road adjacent to the Mimico GO station. Both Terrasan and Stanton Renaissance are owned by Toronto resident Louie Santaguida.
Aptly named On the Go Mimico, buyers were promised 27 storeys of luxuriously finished condo units with retail space on the main level. It was supposed to be the first condo building of its kind in Toronto with direct access to a Metrolinx station. Stanton Renaissance also promised buyers a “commitment to…