Toronto development scheme scrapped and replaced with plan triple the size

Toronto's office and condo markets may be dwindling, but the demand for rental units is still going strong — and developers are quickly pivoting to meet the changing market conditions.

A long-brewing proposal to redevelop a block of low-rise buildings in the Liberty Village neighbourhood has been revived as a planned rental tower that would soar to more than triple the height of what was previously tabled for the site.

The plan calls for a massive 51-storey tower on a block wrapping around Atlantic Ave., Liberty St., and Jefferson Ave., which includes a heritage-designated building at 58 Atlantic Ave., which would be incorporated into the new building.

The existing ivy-covered 3.5-storey former industrial building was originally constructed in 1901 as part of a broader manufacturing complex for the Ontario Wind Engine and Pump Company, which produced infrastructure, including steel towers, windmills, motors, and pumps at this site for more than four decades, and now functions as live-work units.

Developer BentallGreenOak filed plans with the City in the closing days of 2025 for the BDP Quadrangle-designed tower, marking a significant departure from a previous plan that was being pursued for the properties.

Previous applications dating back to 2015 have included a 12-storey iteration, and, more recently, a ten-storey office building that would have risen just shy of 50 metres.

Original 2015 proposal to redevelop the site with a mid-rise office building. Rendering via The Fueling Station.

In comparison, BentallGreenOak's updated plan for the site tabled in December calls for a 51-storey tower rising almost 173 metres, more than triple the height of what was last proposed for the site.

Of course, much has changed in the Toronto real estate market since plans for the site were first proposed over a decade ago.

The office market was gutted during the COVID-19 pandemic, and commercial vacancy rates are still struggling to recover, approaching six years since the first lockdowns.

In addition, Toronto's condo market has taken a nosedive, forcing the cancellation or pausing of several condominium developments, and many more projects forced into receivership.

These conditions may have caused BentallGreenOak to scrap plans for office space and abandon any prospect of a condo development, but that hasn't dissuaded the developer from pursuing the increasingly popular purpose-built rental option.

Planning documents state that, in the context of current planning policy, the previously-approved mid-rise office building "does not fully realize the site's potential."

Planners instead argue that the much taller proposal in its place "represents an important opportunity to optimize the use of the subject site by introducing additional housing options, including affordable rental housing units, public realm improvements and the provision of community space in proximity to existing frequent transit service and existing and planned higher order transit."

A total of 514 purpose-built rental units are proposed in the redevelopment, which includes 464 market-rate units, 30 affordable rental units, and an additional 20 live-work apartments to replace existing rentals that would be lost to redevelopment in accordance with City rental demolition regulations.

In addition to the significant rental component, the plan also contemplates retail uses at street level along with two levels of community space on the second and third floors.