The Gloucester on Yonge (Concord Adex) - Real Estate - was The Clover on Yonge (Cresford)

[AlbertC]

Former Cresford Developments president alleges ‘cash crisis’ at condo firm

SHANE DINGMAN REAL ESTATE REPORTER

The filing describes escalating construction costs for key inputs such as steel and concrete beginning in the fall of 2018. Ms. Athanasoulis said the Clover project was facing $50-million in extra costs, at the same time the Halo project faced overruns close to $45-million. The lawsuit cites a third-party review by cost consultants CB Ross that is said to show 33 Yorkville’s budget needed another $65-million. Some of those bills were paid, but others remained outstanding.

Former Cresford Developments president alleges ‘cash crisis’ at condo firm

A 33-page wrongful dismissal complaint filed on Jan. 21 by Maria Athanasoulis alleges Cresford Developments is failing to pay contractors and incurring costly delays on its projects

www.theglobeandmail.com

 

[karledice]

Former Cresford Developments president alleges ‘cash crisis’ at condo firm

SHANE DINGMAN REAL ESTATE REPORTER

Former Cresford Developments president alleges ‘cash crisis’ at condo firm

A 33-page wrongful dismissal complaint filed on Jan. 21 by Maria Athanasoulis alleges Cresford Developments is failing to pay contractors and incurring costly delays on its projects

www.theglobeandmail.com

She gave us a glimpse into the financial issues when you take on too many projects and use the borrowing from one project to fund the other!

On Jan. 30, GLF Infrastructure Inc. filed a lien against the title of YSL Residences site (383 Yonge St.) for shoring work that began in June, 2019, saying it was owed $3,746,724.19 out of a total bill of $4.576-million.

 

[Gbc]

Clover is at its 80% completion. Just laymen thoughts, since already gone thus far, would builder try to close this project so can collect full amount. It can help their finance situation.

 

[karledice]

I think so, if I think of it, I'd probably do the same lol, take money from the newest projects (YSL - and hence incurring a lien there)
and finish the most complete ones to close and get financing there @Gbc

Although it obviously means all the interest they will have to pay when they do get around to owned contractor. In any case the cost of the project is going to be more than expected as stated in the article and they I'm assuming they will try to cut every corner possible on all these projects to reduce cost.

 

[Gbc]

Again, my 2 cents only.. If Builder is aiming at short fix then rather take offer and walk away. YSL and 33 Yorkville appears can make creat profit by all standards. Cresford might try to keep their reputation, convincing everyone they have future.

 

[karledice]

They could also just sell everything of those 2 projects to the other developers that have the financing available to finish them?
That way they don't need to go further in debt and can focus financing on the 2 already on Yonge.

 

[Gbc]

That could be one scenario alone with many other possible ending. The market and demanding are still overall positive. This is an unfortunate happens at good timing. Hope cresfold can absorb it.

 

[karledice]

I am really hoping the buyers in these projects are going to be OK...technically they can sell everything to a new developer to build to the plans by the same Architect.
Ideally that would allow the buyers to get their units in the same time or a bit later with the same spec...

 

[Rascacielo]

Today

 

[Happylife]

Thanks for those pics. After I saw one of the pic, I was wondering if the builder has removed half of my balcony, so I contacted the Cresford yesterday, unfortunately the answer is yes. So for anyone who bought unit 13 flowerlace model on floor 26 and up, we paid extra 30k for 111 sq balcony, it is gone, instead we only got 60sq balcony. No letter no explanation, with the hot Toronto mkt, looks like there is nothing we can do.

 

[Gbc]

I still remember flowerlace... It was top of my wish list. I couldn’t get it... 60 sq balcony doesn’t change much, I didn’t even consider this factor then, it is still my most favourite.

 

[rabbie]

Thanks for those pics. After I saw one of the pic, I was wondering if the builder has removed half of my balcony, so I contacted the Cresford yesterday, unfortunately the answer is yes. So for anyone who bought unit 13 flowerlace model on floor 26 and up, we paid extra 30k for 111 sq balcony, it is gone, instead we only got 60sq balcony. No letter no explanation, with the hot Toronto mkt, looks like there is nothing we can do.

I guess the extra 30k is for the 1k per floor premium not your balcony.

 

[Full Metal Junkie]

Thanks for those pics. After I saw one of the pic, I was wondering if the builder has removed half of my balcony, so I contacted the Cresford yesterday, unfortunately the answer is yes. So for anyone who bought unit 13 flowerlace model on floor 26 and up, we paid extra 30k for 111 sq balcony, it is gone, instead we only got 60sq balcony. No letter no explanation, with the hot Toronto mkt, looks like there is nothing we can do.

Wouldn't that constitute a breach of contract? Is there a detailed floor plan in your precontruction contract that clearly states the balcony dimensions or square footage?

 

[karledice]

Thanks for those pics. After I saw one of the pic, I was wondering if the builder has removed half of my balcony, so I contacted the Cresford yesterday, unfortunately the answer is yes. So for anyone who bought unit 13 flowerlace model on floor 26 and up, we paid extra 30k for 111 sq balcony, it is gone, instead we only got 60sq balcony. No letter no explanation, with the hot Toronto mkt, looks like there is nothing we can do.

This is horrible for buyers, I still don't understand how this is legal in Toronto.
Like if they advertised that there will be balcony and then there's no balcony, there is no persecution on the developer side.
Awful

 

[Stefan]

You need to check the Architectural Plans on the Development Application site for the respective project. The builder needs to follow these plans when constructing the building as that's what gets submitted to the City of Toronto.

And if that's different than what gets built, then I don't know. Any lawyers who could chime in? Is that grounds for a lawsuit?

This is horrible for buyers, I still don't understand how this is legal in Toronto.
Like if they advertised that there will be balcony and then there's no balcony, there is no persecution on the developer side.
Awful