Experts don't have good outlook for troubled 91-storey megatower project in Toronto

The progression of Toronto's now-infamous The One mega-tower, touted as one of the most ambitious condo developments in the country, has devolved into a series of unfortunate events that just seems to keep getting worse.

Months after the megatower went into receivership and visionary Sam Mizrahi was ousted from key roles, it was revealed that the court-appointed firm tasked with recouping the project's debts was looking to sell off the property to the tune of $1.2 billion.

But, experts are now saying it's unlikely anyone will step up to pay that price tag — and regardless of what happens, there's a good chance many who've purchased units in the complex won't have their contracts honoured.

That building is super cursed lmaoo I knew it was in trouble when I saw it on that realtor show

— Happi (@happiHD) May 31, 2024

Speaking to the Star this week, a broker familiar with the development said that given months of stagnant condo sales in the city, the unfathomable $1.5 billion owed to The One's creditors and the fact that we are in "the worst market in Canadian history for new construction," there is "no way" things can work out well for all involved — including buyers — at this point.

There is also the fact that, per estimates, the building is only actually worth about half of what receivers are hoping to recoup through its sale. So, whoever takes over the tower's completion will need to sell units off at a far higher price than existing buyers paid. 

Those buyers will be simply out of luck after years of waiting and anticipation for their new homes. 

Agree. This thing needs a re-work.

— FOMO guy (@SleepyZohan) June 26, 2024

At least one party has expressed intent to finish the supertall skyscraper, which is moving through construction despite these behind-the-scenes setbacks, if no one else steps in: KEB Hana Bank, the senior secured creditor owed money in the proceedings.

Court documents reveal there are already plans to divvy up some of the upper floors into additional units — adding a total of 88 more — for more potential sales revenue.