[1stLand]

Newstory:

http://www.calgaryherald.com/Calgary+condo+tower+hold+developer+seeks+bankruptcy+protection/1472025/story.html

[Bigtime]

We are already discussing this in the Calgary Construction thread.

Welcome to the forum! First time poster long time lurker?

[frinkprof]

Welcome 1stLand. Short term, I think the most important thing is to get it up to grade, and I hope that happens. After that, I think it's all up in the air and will depend mostly on the rebound of the housing market and the ability to attain financing. I'd imagine if someone buys the project that they will build to grade and then sit on it for a bit.

[JBinCalgary]

shit news

[1stLand]

I see this is being discusssed in the construction forum.

I am a long time lurker. I work for an Edmonton based land developer. I am from Calgary.

Why is it so important to get the project to grade at this point? Is there a construction / cost reason behind this?

I toured the Vetro over the weekend. I have been in Arriva a few times. Saw a few penthouse units.

Arriva's 1st tower is amazing.

What do you all predict a 1bdrm and 2bdrm condo in the victoria park area (from the new developments: Sasso, Vetro, Colors, Chocolate and Arriva) will sell at a year from now? (that includes resale and developer pricing)

I would be interested in hearing your opinions.
It seems most ownership in these units stem from executive suites/rentals

[frinkprof]

Why is it so important to get the project to grade at this point? Is there a construction / cost reason behind this?
Simply so there isn't another inactive construction hole. Getting to grade gives the possibility of temporarily covering with a park. No construction/cost reason, moreso it is important for the community.

I think the solution to Arriva's problems is simple. Get Sutter to sign more players to short-term contracts, seeing as how Bertuzzi, Jokinen, and Cammileri live in Arriva I at the moment.

[Bigtime]

Arriva's 1st tower is amazing.

What do you all predict a 1bdrm and 2bdrm condo in the victoria park area (from the new developments: Sasso, Vetro, Colors, Chocolate and Arriva) will sell at a year from now? (that includes resale and developer pricing)

I would be interested in hearing your opinions.
It seems most ownership in these units stem from executive suites/rentals

That is a really hard question to answer. Plus I've never been in the mindset of buying to sell for a profit later on. I buy to live, if I happen to make some money selling the place when I move on that is a bonus.

There is definitely going to be a price difference between developments, based solely on things like the interior finishings, appliances, quality of construction, and amenities. It is also pretty easy to predict that the units in arriVa will always be at a higher price due to the fact that they are always larger units than the other buildings mentioned. The smallest 1 bedroom in arriVa 34 is 867 sq.ft, so even with the same price per square foot they will be more. But if someone happens to list an arriVa unit for less I would jump on it right away!

[WhipperSnapper]

I think the most important thing is to get it up to grade, and I hope that happens.

It probably take around a million dollars to do it which is peanuts in terms of the overall project but, I doubt the partnership can even raise a nickel at this time.

[Bigtime]

So we had our condo turnover from the developer yesterday. I wasn't able to attend but got the rundown from a few folks that were there.

Torode was there and spoke about arriVa 42. Right now he is trying to secure financing to at least cap off the site at ground level. From that point he is trying to secure financing to continue with the second tower, and failing that will probably sell the site.

[Calgarian]

This project would probably be fine structurally below grade since they poured a few floors of concrete.

[Bigtime]

I would agree with that, the only exposed shoring left that hasn't had a concrete wall poured on it is the last level of underground on the north end of the site.

[bob1954]

I hope this thing gets going again! To many 15-25 story unremarkable midrises going up!

[Bigtime]

CCAA update: Yesterday Torode got another extension until July 2nd. Some consider this a good sign that they are taking the necessary steps to try and restructure and get financing to continue.

I guess we wait about another month and see what happens.

[wild wild west]

/\Let's hope so. It sucks that Calgary seems to be getting disproportionately nailed with stalled projects compared with other Canadian cities.

[Wooster]

I'd say yes, that probably is a good sign. If there was no hope for reviving the projects, there probably would not have been these extensions. With Gateway Midtown the first to resume work, perhaps this will spur a bit of confidence in the market. Rising oil prices probably don't hurt either.

[CanadianTurbo]

There has been mention of a "White Knight" working with the primary debt holders to get things moving and perhaps continue with the construction of Tower 2.

[Bigtime]

There has been mention of a "White Knight" working with the primary debt holders to get things moving and perhaps continue with the construction of Tower 2.

A white knight eh? I wonder if it could even be someone like Remington? Since the more that gets developed that far east in the Beltline the better it makes it for him to get Railtown up and running.

[CanadianTurbo]

Well the 'White Knight" deal has fallen through and PWC is in full control now and I am getting the idea they are very seriously looking at continuing the project themselves. Deposit holders should be hearing from them in writing in the next couple weeks so who knows where things will go from here.

[Chinook Arch]

^Sorry to ask, but who's PWC?

[Coldrsx]

Pricewaterhouse Coopers I presume?

[Bigtime]

Pricewaterhouse Coopers I presume?

You are correct. They have a few letters posted on the construction fencing around the site.

Well the 'White Knight" deal has fallen through and PWC is in full control now and I am getting the idea they are very seriously looking at continuing the project themselves. Deposit holders should be hearing from them in writing in the next couple weeks so who knows where things will go from here.

Interesting, has there ever been something like this before?

[CanadianTurbo]

As far as I know I have not heard of any instances of this happening before, but I would think there is still money to be made with such a project and reports are building costs are down maybe 15% so could be cheaper to do now then before. I would say the biggest hurdle is whether deposit holders could be forced to stick it out or not, as re-selling may not be worth it, but sticking with the more than half sold might be good to go and make them more money then just selling the assets off.

[craner]

So what are the chances of this tower proceeding would you say - 60/40 ? I sure hope it goes (despite the negative impact on Bigtime's view).

[CMD UW]

Well the 'White Knight" deal has fallen through and PWC is in full control now and I am getting the idea they are very seriously looking at continuing the project themselves. Deposit holders should be hearing from them in writing in the next couple weeks so who knows where things will go from here.
PWC aren't developers, so they won't finish the project. What they will do is take control of the assets and restructure them and sell it off to a developer. They basically come in and clean up the mess on behalf of creditors / financiers.

[CanadianTurbo]

PWC is going to court tomorrow with its plan, which includes finishing the parkades to grade and then selling them off and the 2 schools which will be subdivided. They are also wanting to cancel the purchase contracts and begin refunding the deposits.

[Bigtime]

PWC is going to court tomorrow with its plan, which includes finishing the parkades to grade and then selling them off and the 2 schools which will be subdivided. They are also wanting to cancel the purchase contracts and begin refunding the deposits.

If this goes through we are looking at a blank slate for what could happen on the two tower sites. I will be watching with interest.

[Bigtime]

Update from another purchaser in the Calgary Construction thread:

Just got this via email from PWC:

On July 28, 2009, PricewaterhouseCoopers Inc., in its capacity as receiver and manager of Victoria Park Limited Partnership and Victoria Park Holdings Ltd. filed its First Report to the Court (the "Report").

The Report, among other things, requests approval from the Court for the Receiver's proposed plan of action regarding the Arriva 42 purchase contracts and associated deposits. This includes the termination of the Arriva 42 purchase contracts and a mechanism for the return of the deposits.

A copy of the Report (and other materials filed with the Court) can be found on the PwC Victoria Park website at www.pwc.com/car-victoriapark under the section entitled "Receiver's Reports"

The Court application is scheduled for 10:30 am on Thursday July 30. 2009. We expect that the resulting Court Order will be posted on our website by Friday morning.

I read the reports. Torode was unable to secure additional financing, and the Receiver was unable to sell the project "as is" to other bidders (although there was a "White Knight" potential buyer until recently). Some of the deposit monies were used to finance part of the project, but those funds were insured. So, it looks like 120 of us who put deposits down will be getting our money back. Sad, really......

[CalgaryHabFan]

The plan calls for the completion of the parking structure to grade, then the targeted sale of 3 assets (the two schools and the parking structure).

[Bigtime]

I wonder if Venture Communications will just buy the Sandstone school outright? They are the tenants in the building.

[agent_imperial]

So I'm guessing the scribble sculpture that was to be installed around the south school is no more? Too bad, I was really looking forward to seeing that one come to fruition.

[Bigtime]

So I'm guessing the scribble sculpture that was to be installed around the south school is no more? Too bad, I was really looking forward to seeing that one come to fruition.

Yeah that really sucks. I know the artist is an unsecured creditor for $20,000 if I recall correctly.

[O-tacular]

Poor Micah Lexier. It's like he won the lottery only to find out the pot is made of monopoly money.

[tdurden5573]

Im guessing with the foundation in place it would only be a matter of time before something could be built on that site. (ala Bankers Hall 2)? Would they build a podium around the perimiter with retail, or just cap it off at street level?

Its really disappointing, this is one of the projects I was really stoked about. Such is life in a cyclical town.

[bob1954]

Cyclical is right! I really wanted to see this one get done..

[Bigtime]

Im guessing with the foundation in place it would only be a matter of time before something could be built on that site. (ala Bankers Hall 2)? Would they build a podium around the perimiter with retail, or just cap it off at street level?

Its really disappointing, this is one of the projects I was really stoked about. Such is life in a cyclical town.

The Price Waterhouse Coopers plan that they are taking to court today is only to complete the underground parking to grade. They will not be constructing a podium on top.

[Wooster]

I'd imagine once sold a entirely new scheme for that land will be brought forward - building up to podium, even if desirable in the short term inhibits the flexibility. Silver lining I guess is that perhaps we will get a less historicist replica and architectural variety on the block.

[Bigtime]

Silver lining I guess is that perhaps we will get a less historicist replica and architectural variety on the block.

Wouldn't that be a nice break to get!

[CanadianTurbo]

The court has approved the completion of the parkades to grade and then the subdivision and sale of the assets on the site. The Arriva42 purchase contracts are also to be canceled and the deposits refunded. I guess you would say Arriva42 is officially dead now.

[Calgarian]

The court has approved the completion of the parkades to grade and then the subdivision and sale of the assets on the site. The Arriva42 purchase contracts are also to be canceled and the deposits refunded. I guess you would say Arriva42 is officially dead now.

That sucks. We are going to have at least 3 projects build up to grade and stop. I hope they don't end up like the debacle on 4th street was for so long.

[Bigtime]

This morning there were workers on site and the south crane operating. I am guessing that the receiver has hired a company to finish up the underground parking.

[agent_imperial]

I would say that's good news considering the circumstances.

[sim]

This morning there were workers on site and the south crane operating. I am guessing that the receiver has hired a company to finish up the underground parking.


Is this still ongoing? Any other news about Arriva lately? After just seeing all of Toronto's big ones still a go in the Top 10 u/c thread, I am still bothered by this one dying.

[Bigtime]

Is this still ongoing? Any other news about Arriva lately? After just seeing all of Toronto's big ones still a go in the Top 10 u/c thread, I am still bothered by this one dying.

The ONLY work being done on site is the finishing of the underground parking, and cleanup of the school sites to sell the property.

arriVa 42 & 3rd tower as they existed before are DEAD. We'll see what rises from the ashes if someone buys the site.

[bob1954]

A much higher percentage of people in Toronto live in denser area, high-rises ect., Calgary, they don't.

[freeweed]

A much higher percentage of people in Toronto live in denser area, high-rises ect., Calgary, they don't.

Toronto also has 5x the metro population Calgary does.

[bob1954]

Freeweed: I know that, still does'nt matter. It's the demographics of the population too. 15-20 years from now, urban living (whether it be in a highrise) or not will more desireable. Toronto has 2.6 million in it's city limits. Anyway, it'll all work out.