Urbancorp site on Bayview sold after bankruptcy
The development site on the northeast corner of Bayview Avenue and Post Road has been sold after the previous owner, Urbancorp, announced it would file for bankruptcy protection last year.
The property has now been sold to Claude Bitton, a local landlord and real estate investor, according to Ontario Superior Court of Justice documents dated Sept. 15, 2016. Proceeds from the sale will be used to repay homebuyers and outstanding debts.
In January 2016, the developer Urbancorp was granted approvals at the Ontario Municipal Board (OMB) to build 37 townhouses on the site at 2425 and 2427 Bayview Ave. Three months later, Urbancorp’s CEO Alan Saskin announced the company would file for financial restructuring under the Bankruptcy and Insolvency Act in Canada.
The court ordered that KSV Kofman Inc., a financial restructuring firm handling the Urbancorp case, provide homebuyers who invested in the site with individual claims based on the amount of their deposit.
The deposits made by homebuyers on the property amounted to approximately $5.6 million.
KSV was also instructed to repay the first mortgage obligations of approximately $10.4 million owing on the property, to Atrium Mortgage Investment Corporation and Terra Firm Capital Corporation, on behalf of Urbancorp.
The vacant lot has been the cause of controversy dating back to 2006 when developer Hush Homes got approval from the OMB to build 20 townhouses on the site. The company later filed for bankruptcy, and the site was purchased by Urbancorp.
Claude Bitton did not respond to requests for comment by press time.