A multi-tower project in the west end of Toronto, currently under construction by Hazelview Investments, has closed on what the firm calls one of the "largest CMHC-insured loans ever issued".

Hazelview Investments made the announcement that — as part of the MLI Select program — the funding will assist in completing the development, which includes 856 units of affordable housing in a two-tower-plus-podium building as well as a midrise tower. 

“The other part of this overall master plan community is the project includes (a) newly built, affordable building, which is 56 units; a public park that gets conveyed to the city, a community centre, a daycare, a public road that also gets conveyed to the city, and a TTC tunnel as all part of the community benefits package,” Michael Williams, managing partner and head of real estate development at Hazelview Investments, said in an interview with RENX.

The development's main block includes 34- and 38-storey towers connected by a seven-storey podium.

The financing is being provided by First National Financial and will be insured by CMHC. The portion of the project covered by this financing plan is part of a larger Bloor and Dufferin development that at full build-out will deliver over 2,000 apartments in two blocks. Fitzrovia is partnering with Hazelview on the project and will build the other block.

Williams said he could not provide RENX with the amount of the loan, citing “sensitivities.”

Development under construction

“The project is well underway. We’re targeting occupancy in the back half of 2026 that’s specific to the CMHC loan,” Williams said of the timeline for the project.

The community benefits package is valued at $79.8 million and includes a $12.5-million cash contribution for a land trust aimed at new affordable housing projects.

The daycare and community centre will be located on the first two floors of Toronto’s former Kent School building, which is being retrofitted. There will also be a 56-unit, eight-storey building which the city will manage for affordable housing.

“We believe the need is significant and continues to grow. Purpose-built rental housing plays a critical role in addressing affordability, accessibility and urban density challenges across the country. We don’t believe that it’s specific to Toronto. We actually believe that is more of a nationwide challenge that we want to continue to try to find solutions to address,” Williams said. 

For Hazelview, the program offers many benefits and enticements for developers to provide rental housing.

“Obviously, the MLI Select program offers financial advantages that improve the project’s viability and long-term value creation for our investors," Williams said. "But more importantly, the one that applies to this side is it continues to incentivize the construction of newly built rental housing in the city of Toronto and nationally."

Hazelview has experience with CMHC financing

As part of the application process, which began about 20 months ago, Hazelview beat the benchmark requirements for accessibility (achieving the Rick Hansen Foundation Level 1 certification) and energy efficiency by 120 points.

“It really encourages meaningful investment in energy efficiency, accessibility and affordability, and then it also supports a strong financial outcome, alongside community and environmental impact altogether,” Williams said.

The company previously received funding through the MLI Select program, according to Williams, for its development at 205 Queen St. in Brampton, just north of Toronto. So, it is well acquainted with the application process.

“Obviously the policies were a little bit different and we’ve also had CMHC loans on other properties for construction, not MLI select. We’re really familiar with the product itself; the process, although it does change over time, so we continue to educate ourselves and work closely with CMHC on how to effectively execute in that policy framework,” he said.

While the money has been provided, “it’s not fully drawn on so the loan has just started to fund construction,” Williams said.  

“The loan itself on hard and soft construction costs are tied direct to the development of those 856 rental units, and the other thing it supports on this site particularly is the public infrastructure and community amenities that come along with the site, which is that community benefits package.”

Williams said marketing and leasing for the apartments which will be owned by Hazelview will begin closer to completion of the towers. 

Wide range of indoor and outdoor amenities

“Currently we’re in construction. We’re topping off, so we should be soon rounding the corner of marketing and leasing, and we’re really excited to then deliver those 856 units to the marketplace for rent.”

The two towers and podium will feature approximately 14,000 square feet of interior amenity space on the eighth floor that walks out to approximately 12,000 square feet of exterior amenity space.

It is to be designed with a hotel and restaurant feel, and includes: a gym, party rooms, kids' room, theatre room, guest suites, BBQ areas, outdoor garden and more. There will also be retail at ground floor facing the park.

Hazelview will retain ownership of the properties, while handing off the additional 56 units in the eight-storey building to the city of Toronto.

“The project is a really good example during challenging times where stakeholders can come together: municipalities, developers, engineers, construction folks that are actually building it, to bring creative solutions together and actually deliver housing, which is a really challenging thing to do in this market.”