Two more big condo projects in and around Toronto have gone into receivership

Toronto’s once-lucrative condo market has been showing signs of faltering, with hardly anyone buying units that still somehow remain doggedly overpriced.

As a result, developers are offering all sorts of desperate incentives or actually backing away from towers already in progress — and some are even defaulting on lenders as they can’t secure the funds to keep certain projects going.

Along with a number of complexes that have gone into receivership this spring, two more from Mizrahi Group are now apparently in financial trouble.

Sam Mizrahi, of course, is the developer who was famously removed from key roles in his own supertall skyscraper project, Yonge and Bloor’s The One, a 91-storey hotel and condo that is now being sold off after its own receivership order.

According to Storeys, Mizrahi’s ongoing residential builds at 128 Hazelton Avenue in Toronto’s Yorkville neighbourhood and at 180 Steeles Avenue just outside the city’s bounds in Vaughan are also now facing the same fate.

You might also like:
• Luxury hotel and event centre on sprawling site coming to Niagara-on-the-Lake
• Canadian landlord tries to cram three people in living room for $1,650 a month
• This unassuming $1 million Toronto home hides a stunning modern interior

One creditor claims they are owed $47 million and $29 million, respectively, in unpaid and unaddressed debts that they hope to recover through the court orders.

Private real estate fund Constantine Enterprises Inc., on board for both developments, said in an affidavit in April that it has “lost confidence in Mizrahi and the Mizrahi Group’s ability to fulfill their financial obligations.”

It added that the nearly complete Hazelton condo, in particular, is now tens of millions over budget, years behind schedule and “at a standstill because of the lack of funding.” Between last December and this April, multiple units in the building were put on the market for a staggering $3 million to over $8 million. The listings have all since expired.

Mizrahi has launched his own litigation in response, though there are tens of millions said to be owed to other firms he had partnered with for the communities.

KSV Advisory looks to be the receiver in charge of both properties and their thousands of collective units, with the future for buyers and other stakeholders now uncertain.