Transformation of North York Office Complex Set in Motion Following Sale

📅 4 days ago

The former office complex at 95 and 105 Moatfield Drive in North York has been sold and is slated for renovation and conversion into a mixed-use development, highlighting significant shifts in the property market.

After enduring over a year in receivership, a prominent office complex in North York has officially changed hands and is poised for a major transformation. Located at 95 and 105 Moatfield Drive within the Don Mills neighbourhood, the property lies on the western bank of the Don River, strategically positioned near the intersection of Don Mills Road and York Mills Road.
Originally acquired by Slate Office REIT in 2018 as part of a larger portfolio purchase from Cominar REIT, the complex was sold in late 2022 for $97 million to Visionary Holdings, an education technology firm listed on NASDAQ. The complex encompasses a total area of 413,268 square feet, distributed between a five-storey building at 95 Moatfield Drive, which offers 165,315 square feet of space, and an 11-storey building at 105 Moatfield Drive, contributing 247,953 square feet. Additionally, the site includes provisions for 282 surface parking spaces and 972 underground parking spaces.
The property was held by Visionary Holdings through 13995291 Canada Inc., which became embroiled in a receivership application filed in the Ontario Superior Court on August 1, 2024, initiated by the Bank of China (Canada). This action stemmed from a first-ranking mortgage amounting to $60 million, which carried an interest rate of 1.0% above the Bank of China’s Prime Rate. According to the bank, the loan was intended for the acquisition of the property, and a notice of default was issued to the borrower on July 5, 2024, due to several breaches including the unauthorized registration of a $5 million mortgage, a payment demand from the Canada Revenue Agency totaling $1.8 million, unpaid property taxes, and a construction lien.
As of July 4, 2024, the Bank of China reported that it was owed $59,753,654.04, a situation compounded by the significant depreciation in property value observed since the purchase. Donald Bridge, the Deputy Manager of Risk Management at the Bank, noted in an affidavit that the rapid decline in market value was a major concern, as most of the bank's collateral was tied to the property. The complex was home to 15 tenants, with Hitachi Rail GTS Canada Inc. being the largest, occupying 53% of the total space.
The court granted the receivership application on August 27, 2024, leading to the listing of the Moatfield complex for sale by Cushman & Wakefield on an unpriced basis. Initially, there was an aspiration to sell the property to Infrastructure Ontario, which had expressed interest in acquiring multiple office buildings in Toronto. However, after progressing through several stages, the Moatfield complex was ultimately not selected.
Cushman & Wakefield began marketing the property in March 2025, attracting interest from 23 parties who signed confidentiality agreements, with 10 of those proceeding to property tours. Ultimately, six bidders submitted offers, which were refined until a court-appointed Receiver formalized an agreement in November with the winning bidder, identified only as 1001198779 Ontario Inc. The transaction received court approval on December 11, with an initial closing date set for March 19, 2026. However, the purchaser requested multiple extensions, pushing the closing date to April 30 and then June 4.
During this extension period, the Receiver facilitated additional information requests from the Purchaser and negotiated adjustments to the purchase price with the Bank of China. The transaction officially closed on June 4, with total sales proceeds reported at $39,683,728, which likely includes various fees and adjustments, while the actual purchase price is reported to be $30 million.
The purchaser has been identified as the Toronto-based Sunray Group, a developer focused on hospitality. This was confirmed during a recent ceremony where plans for the Moatfield complex were unveiled. The project includes a comprehensive renovation of the 11-storey office building at 105 Moatfield Drive, while the five-storey building at 95 Moatfield Drive is set to be converted into a hotel, now named the Toronto Fortune Centre. The project aims to introduce a variety of hospitality, dining, wellness, recreation, and commercial amenities to enhance the overall campus experience.
When initially marketed, the occupancy of the complex was noted to be at 53%. However, the Receiver reported that the property is now “mostly vacant,” with Hitachi relocating prior to the expiration of their lease on January 31, 2026, reducing their occupancy to 29,175 square feet. Other tenants, including several affiliated with Visionary, have also ceased rent payments, leading to the termination of their leases. The office building will offer 247,953 square feet of office space, while the hotel building will feature 165,315 square feet dedicated to hospitality and various supporting services.

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