Despite challenging times recently in the Toronto condominium market, Dorsay Developments is joining forces with Devron on a new luxury project in the heart of the city.

“1140 Yonge is a very special location in the city in that it’s located right at the centre of Rosedale. The site itself sits at the corner of Yonge and Marlborough, which are iconic streets in the city, and currently in a historic building,” said Ian MacLeod, senior vice-president residential with Dorsay Development, who spoke with RENX after the firm joined Devron in the project.

The two companies will operate on an equal basis, according to MacLeod, as he discussed the genesis of the partnership.

“Devron has a lot of experience in developing residential projects in the City of Toronto, and they’re high quality, and we’ve always resonated with their character and belief in an elevated quality of condominiums,” MacLeod said.

Devron will be the construction manager but both firms will have “shared responsibilities” and “it’s very much an equal partnership in that respect.” Once the units are sold, “we’re looking to continue the partnership on other projects in the future,” MacLeod said.

As a developer with a long history of partnerships, joining with Devron was a natural extension of that, he said. “We have a bit of a culture of partnerships, and we really like working with best in class. So really, it’s just a function of our principles matching each other very well.”

The 1140 Yonge property

The site has a varied history stretching back a century, including as a Pierce-Arrow automobile showroom and a CBC studio, which will be reflected in the new design. The existing building was built in 1930 and designated as a heritage site in 1978, according to City of Toronto documents.

“We’re looking to leverage off of the heritage element of the site, both in retaining the heritage facade in the new project, and to reflect some of that history and character in the design and architecture when we go forward,” MacLeod explained.

The 10-storey condo will house approximately 70 units, with sizes ranging from 2,000 square feet up to 6,000 square feet. Devron and Dorsay will target local families initially, who are used to owning bigger homes in the tony neighbourhood.

“There will be very elevated expectations for the design and the quality. That’ll be reflected in very high-quality finishes; larger units, more attention than that is typical paid to the design of the suite layouts,” he said. “These are buyers that are likely coming out of homes in the neighbourhood, and the buyer therefore would be accustomed to more space perhaps and transitioning or evolving into a condominium lifestyle.”

The partners plan to begin construction in 2026, with a completion date of 2029. Pricing for the luxury suites is not yet finalized.

“We have rough guesses, and there’s going to be a pretty wide range, and that’s something that we’re going to have to fine tune over the next several months. It’s a luxury project, so the pricing will reflect that, but it’s a little early to say,” MacLeod said.

Devron has owned the site for several years, and has advanced a number of proposals to the city during that time, though all have envisioned a multifamily project of roughly this size. With Dorsay now on board, they are ready to advance the development.

Luxury condo sector remains steady

While many developers focused on lower-priced demographics are facing severe challenges in the condo market, the luxury segment has continued to perform well. 

“Some of the broader challenges that we’re seeing in the market really don’t impact the luxury market. The luxury condo market in our view remains very strong and has solid prospects, despite some of the challenges in the broader market,” he said.

“The luxury market is mostly an end-user market and the resident that’s making the decision to purchase a new condominium is generally making it for lifestyle reasons.”

Initially buyers should be the residents, according to MacLeod, with very few investors purchasing units.

“The luxury market has been somewhat underserved over the past several years because the focus has been on larger towers, and now there appears to be a movement towards serving the end-user market and more of a mature condominium market.”

Challenges have included lack of affordability for condo purchasers, MacLeod said, citing high interest rates and increased construction costs, but there is a glimmer of hope for the future. 

“There’s optimism that the three levels of government are now working very hard with the real estate industry to find new solutions. We’re optimistic that we will work through this and fundamentally, the Toronto real estate market is a very good place to be,” MacLeod said.

Economically, challenges remain but it’s becoming an “evolving” landscape which offers new hope.

“The past several months has seen a lot of uncertainty in the broader economy, but we are seeing a return to an ability to look to the future and start making some investment decisions again. Despite a lot of the headlines and some of the challenges that we know of in the residential market, we are very confident in investing in a location and community like Rosedale,” he said.