Developer Hazelview Investments has announced that it has secured one of the largest CMHC-insured loans ever issued under the MLI Select program.

The funding will advance the development of 856 new purpose-built rental homes in one of Toronto's most ambitious and community-oriented master-planned sites, located at the intersection of Bloor St. West and Dufferin Ave. 

Financing for the construction loan was provided by First National Financial LP, but the developer would not indicate the value of the loan, citing sensitivities.

"Securing this financing reflects our belief that doing the right thing for communities also delivers long-term value for investors," said Michael Williams, Head of Development at Hazelview Investments. "The scale and structure of this loan allow us to move forward confidently with a project that meets high standards for livability, sustainability, and financial performance."

Hazelview's application to CMHC qualified under both the energy efficiency and accessibility categories of the MLI Select program. The development surpassed baseline requirements, resulting in a total of 120 points, above the program's maximum benefits threshold.

The project earned the full 100-point energy efficiency incentive by achieving ~40 percent improvement over the National Energy Code for Buildings, driving meaningful reductions in both energy consumption and greenhouse gas emissions, while also providing enhanced indoor comfort, better air quality, and reduced utility costs for future residents.

The overall project is part of a broader vision to deliver long-term community value.

The development of the site also includes a $79.8-million community benefits package, including a $12.5 million cash contribution to establish land trusts that will acquire affordable housing.

The community benefits package includes:

• a new city-owned community hub and daycare on the first two floors of the former Kent School building
• an eight-storey building with 56 purpose-built units to be conveyed to the city, exclusively for public affordable rental housing
• a new bus-accessible public road that prioritizes the safe and convenient transportation for students and visitors alike
• a new public park
• an underground pedestrian connection to the Dufferin TTC subway station

"Bloor Street is one of those centrepieces of Toronto. It's an historic street that defines the east-west spine of the city,” said Barry Gidney, AVP, Commercial, First National Financial LP. “Hazelview's vision for this landmark corner of Bloor Street West and Dufferin Avenue helps raise the standard for apartment living in our city, one that we have yet to see at this quality and scale."