Grandview Tower Project in Markham Sold Following Receivership

📅 5 days ago

The Grandview Tower project in Markham, Ontario, has been sold after being placed under receivership. The property, originally planned for a 36-storey condo tower, was revised to include two towers with a total of 873 units. The sale followed financial difficulties faced by Terra Bona Developments Ltd.

The Grandview Tower project located at 7115 Yonge Street in Markham, Ontario, has officially changed hands after being placed under receivership in December. Filings in the Ontario Superior Court confirm the sale of the property, which is situated on a 0.95-acre site that includes a vacant parcel and four single-family lots. The site is located on the eastern side of Yonge Street, nestled between Meadowview Avenue and Grandview Avenue, approximately three blocks north of Centerpoint Mall.
Initially, the project proposed by Terra Bona Developments Ltd. aimed to construct a 36-storey condominium tower featuring 443 units. However, this plan underwent revisions following an appeal to the Ontario Land Tribunal (OLT), leading to an updated proposal that includes one 49-storey tower and one 46-storey tower, culminating in a total of 873 residential units.
In October 2022, Terra Bona secured a first-ranking mortgage from Empirical Capital Corp., a Toronto-based firm, amounting to $31 million. This loan, which carries an interest rate of either 10.25% per annum or the RBC Prime Rate plus an additional 4.80%, was guaranteed by Majid Tavakoli and his company, Majid Tavakoli Holdings Ltd. The funds from this loan were intended for various purposes, including paying off existing mortgages and funding a partner buyout.
The existing mortgages totaled approximately $15.8 million owed to Forgestone Capital and $4.3 million owed to MarshallZehr. However, Terra Bona defaulted on the loan, having failed to make an interest payment in May 2024. In response, Empirical Capital initiated receivership proceedings in November 2024, claiming that they were owed $33,419,371.06 as of January 1, 2025, with interest continuing to accrue.
Despite Terra Bona's attempts to negotiate a second mortgage to facilitate a paydown of the debt and extend the loan maturity from July 2024 to August 2025, they were unable to secure the necessary financing. Consequently, Empirical Capital formally demanded payment in September 2024, leading to the initiation of the receivership proceedings due to Terra Bona's continued inability to meet its financial obligations.
Prior to the receivership being granted, both parties entered a forbearance agreement that delayed enforcement until June 2025. During this period, Terra Bona was in discussions with Metrolinx regarding three temporary easements and was awaiting a hearing with the OLT scheduled for May 2025. However, the developer defaulted on this agreement as well, leading to the recommencement of the receivership application, which was ultimately granted on December 1, 2025.
In late January 2026, the court-appointed Receiver engaged Lennard Commercial Realty to list the property for sale, with a team that included Peter DeGuerre, Joshua Perlstein, and Paul Campbell. They successfully outbid proposals from other major real estate firms such as Cushman & Wakefield, CBRE, and Colliers. Lennard Commercial Realty promoted the site as a unique opportunity for high-density, transit-oriented development in a prime Yonge Street location.
By September 11, 2026, the Receiver reported that they had garnered interest from 28 parties, resulting in seven offers. In June, the Receiver entered into a sale agreement with 2158046 Ontario Inc., which later waived its conditions on August 19. Although the identity of the true purchaser remained undisclosed, court filings revealed that Shane Baghai, a prominent luxury condo developer, was involved in the transaction.
While the purchase price was not disclosed, the Receiver indicated that Empirical Capital was owed $39,167,304.23 as of August 24, 2026, suggesting that the sale price was likely below the outstanding debt, which points to a potential financial shortfall for Empirical. The Ontario Superior Court approved the sale to 2158046 Ontario Inc. on September 22, marking a significant development in this complicated case surrounding the Grandview Tower project.

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