DIAM Developments has announced that it will be cancelling its condominium project planned for Danforth Avenue between Main Street and Woodbine Avenue.
“We are extremely disappointed that we have to cancel our On The Danforth condominium development that was to be located at 2359 Danforth Avenue in Toronto,” a statement from DIAM read.
DIAM’s statement cited a number of “circumstances beyond our control” for the cancellation of the sale of the proposed condo units.
Those circumstances included significant unanticipated construction cost increases; construction delays; the refusal of DIAM’s lender to make the requisite construction financing advances under the construction loan; and the lender’s demand for repayment in full of the amounts owing under the construction loan, the statement said.
“As the result, the project is no longer financially viable. All Agreements of Purchase and Sale will be terminated, and deposits to date will be returned to purchasers,” the statement said.
The proposed On The Danforth condo was expected to be 10-storeys high with 139 units, and originally had a completion date of 2017.
Work has not been taking place at the construction site for at least two months, and at the moment it is basically a fenced-off hole in the ground.