The site is currently comprised of 10 houses and properties that were assembled by Platinum Vista for an undisclosed price.
Stuart Wilson, who became Alterra's president in May after serving as the company’s chief operating officer for six years, would only say the total value was between $50 million and $100 million.
The proposed high-rise will offer approximately 700 suites, ranging from studios to three-bedroom residences.
There will also be a rental replacement component as part of the development. Wilson isn’t yet sure if that will be handled in-house, as DBS has rental property management experience, or if an outside agency will be brought in to handle that process.
“The key is just making sure that you're doing something better than what was there in the first place,” Wilson told RENX.
A large amount of multiresidential construction has occurred over the past decade in the area where the three partners plan to build this project, including another of Alterra's developments.
The development partners
Alterra, which is celebrating its 50th anniversary this year, has developed more than 50 communities and is responsible for more than 30 million square feet of development in the Greater Toronto Area (GTA) and Greater Golden Horseshoe.
DBS is a fully integrated development company involved with project design, development, construction and property management. It has more than 4,000 current and upcoming units under management and more than two million square feet of projects under development.
Platinum Vista is a full-service development firm that has built condos, townhomes and single-family subdivisions. It also has holdings in commercial ventures and hospitality and recreational properties, including hotels, golf clubs, ski resorts and more.
Hunter Milborne, the president and chief executive officer of pre-construction condominium sales and consulting firm Milborne Group as well as the president of Platinum Vista, made the introduction between Alterra and DBS.
Alterra has a 50 per cent stake in the Sherbourne and Linden development, with DBS and Platinum Vista each holding 25 per cent shares.
“We're sharing responsibility on the development management to those respective percentages and we'll be the construction manager,” Wilson explained. “We will be responsible for sales and marketing and we have a joint initiative on the rezoning.”
Rezoning will be necessary
The site is currently zoned for neighbourhoods, so the official plan will need to be changed to mixed-use to move forward with the development.
“There's some good precedent in the neighbourhood where that is happening,” Wilson said. “It's a trade-off where if you want something from the city, you have to give them something.
“We'll work through the process. We’ve got a long track record of doing the right thing by the city and giving them a few community benefits that they wouldn’t normally have. I'm not exactly sure where we’ll go with this one.”
Eighteen months to two years is being targeted for the rezoning process and Wilson expects sales to take about a year.
From there it’s anticipated it will take from six to nine months to get all of the needed permits to begin construction, which is expected to take four-and-a-half years from start to finish.
Arcadis IBI Group has been chosen as the architect for the project, which is in the planning and design stage. It will include a heritage component that pays homage to the area's historical significance.
Other Alterra developments
Toronto-based Alterra has more than 4,000 residential units under construction or in the advanced stages of development in the GTA.
Transfer of ownership to residents is taking place at the 15-storey, 123-unit Rush Condos at 520 Richmond St. W. and the seven-storey, 285-unit Wonder Condos (a partnership with Graywood) at 462 Eastern Ave. in Toronto.
Construction is in the early stages for the nine-storey 321 Davenport, which will include just 18 penthouse suites in a location bordered by Toronto’s Yorkville and Annex neighbourhoods to the east and west respectively.
The 12-storey, 379-unit 28 Eastern on Eastern Avenue is under construction and scheduled to be completed next year.
Projects that are still to launch
Sales should also begin in 2024 for a 10-storey, 135-unit condo at 36 Fieldway Rd., which is just south of Bloor Street West between Islington and Kipling Avenues in Toronto.
Alterra and Distrikt have plans to develop the mixed-use St. Clair Gardens community with two 17-storey towers. It will be occupied by approximately 770 residential units, along with retail and commercial space, at the northwest corner of St. Clair Avenue West and Caledonia Road.
Alterra and DiamondCorp are in the final stages of getting zoning approval for a 39-storey, 430-unit condo at 50 Merton St. in midtown Toronto.
Alterra is looking to deliver approximately 600 market rental and 250 affordable rental homes in a development near Danforth and Victoria Park Avenues in Toronto’s east end.
New capital-raising and acquisition strategies
Wilson plans to lead Alterra’s new capital-raising and acquisition strategies as part of his mandate as president.
“There are a lot of pieces of land that are for sale, but interest rates are making things very challenging,” Wilson said in discussing Alterra’s acquisition pipeline.
The company has traditionally taken on high-net-worth individuals as investment partners and is now looking to team up with pension funds and private high-net-worth groups for future projects.
“We don't have aspirations to take over the world, but we do have aspirations to do more of the same on a bigger scale,” Wilson explained. “Subject to where we land with venture funds and larger, deeper-pocketed partners, we think we have the capability to go as far as we can.
"There are lots of opportunities out there and we have a massive backlog of housing that's required in this city.”