- Thread starter urbandreamer
- Start date
HousingNowTO
Senior Member
“Lenders behind troubled luxury condo One Bloor West (formerly The One) are suing paving tycoon Jenny Coco and real estate mogul Sam Mizrahi over allegations that they have defaulted as guarantors of the project's loans.
KEB Hana Bank, acting as trustee of two South Korean private real estate funds, is demanding that Coco and Mizrahi repay $1.5 billion in outstanding principal, interest and fees, according to a notice of application filed in court on Aug. 19.
The filing states that Coco and Mizrahi are guarantors on the loans in a personal capacity, meaning their personal assets — including homes, incomes and bank accounts — could be on the hook if KEB Hana Bank's application succeeds, according to real estate lawyers who read the document at the Star's request.“
www.thestar.com
KEB Hana Bank, acting as trustee of two South Korean private real estate funds, is demanding that Coco and Mizrahi repay $1.5 billion in outstanding principal, interest and fees, according to a notice of application filed in court on Aug. 19.
The filing states that Coco and Mizrahi are guarantors on the loans in a personal capacity, meaning their personal assets — including homes, incomes and bank accounts — could be on the hook if KEB Hana Bank's application succeeds, according to real estate lawyers who read the document at the Star's request.“
Senior lenders behind luxury condo The One sue Sam Mizrahi and Jenny Coco for $1.5 billion
Mizrahi Developments was ousted as developer of the iconic Toronto skyscraper, now called One Bloor West, in February 2024, after the project was placed into receivership.
www.thestar.com
UtakataNoAnnex
Senior Member
^...when the Devil comes to collect his dues.
Jonny5
Senior Member
Jenny Coco was also involved in the collapse of the private debt investment firm Bridging Finance, where many of the loans were floated to businesses that immediately paid back "consulting fees" directly to the owners, not the investors, and many of the loans were allegedly kept at book value in the fund's accounting records even though they knew they would never be recovered.“Lenders behind troubled luxury condo One Bloor West (formerly The One) are suing paving tycoon Jenny Coco and real estate mogul Sam Mizrahi over allegations that they have defaulted as guarantors of the project's loans.
KEB Hana Bank, acting as trustee of two South Korean private real estate funds, is demanding that Coco and Mizrahi repay $1.5 billion in outstanding principal, interest and fees, according to a notice of application filed in court on Aug. 19.
The filing states that Coco and Mizrahi are guarantors on the loans in a personal capacity, meaning their personal assets — including homes, incomes and bank accounts — could be on the hook if KEB Hana Bank's application succeeds, according to real estate lawyers who read the document at the Star's request.“
Senior lenders behind luxury condo The One sue Sam Mizrahi and Jenny Coco for $1.5 billion
Mizrahi Developments was ousted as developer of the iconic Toronto skyscraper, now called One Bloor West, in February 2024, after the project was placed into receivership.
Bridging Finance owners Jenny and Rocky Coco sued for alleged roles in the private lender’s collapse
Two separate lawsuits allege negligence, fraudulent misrepresentation and breaches of fiduciary duty
www.theglobeandmail.com
SkylineHorizons
Active Member
Never thought I'd see the day when the view of a some part of the city from the CN tower would be blocked by a skyscraper. Mizrahi may be getting his ass sued today but I still thank him for helping to turn that fantasy into a reality.
BloorMan
Active Member
From today:
ryanbruins17
Active Member
From Niagara on the lake
Start Fox
Active Member
The filing states that Coco and Mizrahi are guarantors on the loans in a personal capacity, meaning their personal assets — including homes, incomes and bank accounts — could be on the hook if KEB Hana Bank's application succeeds, according to real estate lawyers who read the document at the Star's request.“
Senior lenders behind luxury condo The One sue Sam Mizrahi and Jenny Coco for $1.5 billion
Mizrahi Developments was ousted as developer of the iconic Toronto skyscraper, now called One Bloor West, in February 2024, after the project was placed into receivership.
Maybe this is too in the weeds but I'm hoping someone more knowledgeable with the real estate / development sector can speak to this: I've never quite understood why people who have certainly "made it" in life (Mizrahi presumably had millions of dollars in personal assets before embarking on The One) would personally guarantee something related to their corporation (in this case a $1.5 billion real estate development loan). Why take on that risk? Why remove a main benefit of the corporation structure that real estate development usually uses (a separate legal entity for each project)?
Are all the lenders requiring this as a condition and there's no other way to get the funding? Or is it just to reduce the interest rate?
For context, my understanding is that a personal guarantee is often (always?) required when signing a retail lease for say a coffee shop or restaurant, but that makes a bit more sense to me because at least in the case of someone trying to open a small restaurant they probably haven't "made it" yet with significant personal assets at risk, so they're perhaps more willing to roll the dice. But still, I see small retail shops in the new buildings around me close down and I think about how if the owner personally guaranteed a 5 year lease, they might be out hundreds of thousands of dollars. Is that really the case?
OpenClosed
Active Member
This confirms my thought that once Pinnacle actually tops out, One bloor west will still be more prominent on the skyline, or have about the same prominence. It just looks insanely tall against the rest of the city, I could be wrong though
Jonny5
Senior Member
In the good times when money is flowing into private debt financiers that cascades down to projects like this, there's far fewer questions asked by the lenders or any kind due diligence look-through from those funding the loans.
You can also find these individuals know about the personal guarantee and have set it up so that if things blow up they nominally "own" nothing. Everything they have is leased or borrowed from someone else so it can't be added into a claim on their assets. Extend that into conveniently not having any cash because all the cash they've made is mysteriously gone.
You can also simply declare bankruptcy, which is kind of becoming more in the public consciousness as not a big deal. People think if you file for bankruptcy your life is over, in reality you give it 18 months and you're right back in it, probably with most of what you had before.
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UtakataNoAnnex
Senior Member
I can least be sympathetic with Flat Earthers that from this vantage point this would of been a spectacular shot of the lake shore as well if their nonsense was true...
Civdis
Active Member
Mizrahi was not big enough to find financing for a project of this size without putting all of his assets up for recourse purposes. Very large developers like Tridel can finance their projects on the basis of their corporate covenant alone.
Johnny Au
Superstar
In 1894, the Toronto skyline was visible from Buffalo:
en.wikipedia.org
If the Fata Morgana were to happen again, then One Bloor West would be very easily visible from Buffalo.
Fata Morgana (mirage) - Wikipedia
If the Fata Morgana were to happen again, then One Bloor West would be very easily visible from Buffalo.
innsertnamehere
Superstar
In 1894, the Toronto skyline was visible from Buffalo:
Fata Morgana (mirage) - Wikipedia
If the Fata Morgana were to happen again, then One Bloor West would be very easily visible from Buffalo.
Theoretically the top of the CN tower should be visible from the top of the Seneca One tower. In reality it’s exceedingly difficult as atmospheric distortion at those distances makes it very challenging to see.