Canada's First Supertall Skyscraper is in Crisis

Summary

The One, Toronto’s ambitious supertall skyscraper, promises to redefine the city’s skyline but has faced major setbacks. Despite groundbreaking in 2017, the project has struggled with debt, delays, and leadership changes, pushing its original 2022 completion date far behind. Located at the key intersection of Yonge and Bloor, the luxury tower aims to offer condos, retail, and hotel spaces, but mounting challenges—such as financial strains and competition from rival developments like SkyTower—threaten its status as Canada’s tallest skyscraper. Will The One overcome its obstacles and fulfill its potential, or will it lose its race to the top?

Takeaways

• 😀 Canada’s first supertall skyscraper, The One, will be located in Toronto and is designed to offer luxury condos, hotels, and retail spaces.
• 😀 The One is projected to cost over a billion Canadian dollars, with condo prices ranging from 3 million to over 30 million dollars.
• 😀 Despite its ambitious goals, The One is facing significant delays and is currently incomplete, with only 40 floors poured by October 2023.
• 😀 The tower has encountered multiple challenges, including climbing debts (around $1.7 billion) and a change in management due to internal conflicts.
• 😀 A key feature of The One’s design is its wind resistance system, which includes a 600-tonne pendulum mass damper to counteract sway from high winds.
• 😀 Toronto is in the midst of a construction boom, with over 200 cranes in operation, but also faces a housing crisis, requiring 5 million new homes by 2030.
• 😀 The rising population in Toronto and a lack of affordable housing have pushed for more condo developments, although the city’s condo market is struggling.
• 😀 Many of Toronto’s condo developments, including The One, have been impacted by high interest rates, inflation, and an oversupply of smaller, investor-driven units.
• 😀 The One is in a race with another major development, Pinnacle One’s SkyTower, which is set to become Toronto’s tallest building at over 340 meters and may finish in 2025.
• 😀 The One’s future is uncertain due to its financial troubles, unresolved issues with tenants, and a lack of a major retail tenant (Apple pulled out due to delays).

Q & A

What is The One, and why is it significant?

The One is a supertall skyscraper under construction in Toronto, designed to be Canada's first such building. It is significant due to its ambitious design and location at the intersection of Yonge and Bloor, aiming to set a precedent for future skyscrapers in the country.

What types of spaces will The One offer upon completion?

The One will include luxury condos, a hotel, and retail spaces. The residential units range in price from 3 million to over 30 million Canadian dollars, making it a high-end development.

What are some of the key construction challenges The One has faced?

The One has faced several challenges, including construction delays, a high debt load, and the need for stronger materials after wind tests revealed significant pressure on the building. Additionally, there have been management changes and financial struggles, with the project accruing debts up to $1.7 billion.

What is the role of the Tuned Mass Damper in The One's design?

The Tuned Mass Damper is a 600-tonne pendulum added to the top of The One to counteract wind sway. It helps reduce the movement of the building, ensuring structural stability in high winds and minimizing the sway of the tower.

How has the construction timeline for The One been affected?

The One's construction has been significantly delayed. Initially expected to be completed by 2022, as of October 2023, only 40 floors had been poured. These delays are primarily due to financial issues, changes in management, and other construction challenges.

What is the housing crisis in Toronto, and how does it relate to The One?

Toronto is experiencing a housing crisis, with the city projected to need an additional 5 million homes by 2030. The One, along with other high-rise developments, is part of an attempt to address housing demand, particularly for luxury condos. However, the city’s zoning laws and market conditions are slow to adapt, and affordable housing is in short supply.

How does the condo market in Toronto affect The One?

The condo market in Toronto has faced difficulties, especially with many condos being built with investors in mind rather than for permanent residents. This has led to a surplus of small units that aren’t suitable for families. The One faces these same market challenges, with high interest rates and inflation contributing to its financial struggles.

What competition does The One face from other developments in Toronto?

The One faces competition from other major developments, particularly the SkyTower in the Pinnacle One project, which is set to rise to over 340 meters. This tower could surpass The One in height and could be completed faster, potentially claiming the title of Canada's tallest skyscraper.

What financial difficulties has The One encountered?

The One has encountered significant financial difficulties, including mounting debts of up to $1.7 billion. The project was put into receivership in early 2024, and the lead developer, Sam Mizrahi, was removed from the project. These financial issues, along with construction delays, have complicated the completion of the building.

Why is the future of The One uncertain?

The future of The One is uncertain due to its mounting debts, construction delays, and the change in management. Additionally, the project's financial value has significantly decreased, with estimates indicating it is worth half of its original value. While the building is likely to be completed, its legacy may be overshadowed by delays and the emergence of competing developments.