As Toronto’s development landscape continues to shift, a revived proposal in Liberty Village highlights how developers are responding to changing market realities. While office and condominium construction has slowed sharply, demand for rental housing remains resilient. That imbalance is now driving significantly larger, denser rental proposals across the city, including a newly filed plan that would dramatically reshape a low-rise block in Liberty Village.
A long-standing redevelopment concept for properties wrapping around Atlantic Avenue, Liberty Street, and Jefferson Avenue has returned in a much bolder form. The updated proposal calls for a 51-storey purpose-built rental tower that would rise more than three times higher than what was previously contemplated for the site.
The site has been subject to redevelopment discussions for more than a decade. Earlier applications dating back to 2015 included a 12-storey scheme, followed more recently by a ten-storey office building that would have topped out just under 50 metres. Those plans reflected a market that once favoured office expansion and modest intensification in Liberty Village.
That context has changed dramatically. The office sector has yet to fully recover from pandemic-era disruptions, with vacancy rates still elevated years after the first lockdowns. At the same time, Toronto’s condominium market has weakened significantly, leading to cancelled projects, paused developments, and a growing number of sites entering receivership.
Against that backdrop, BentallGreenOak has pivoted away from both office and condominium uses. In late 2025, the developer filed a new application with the City of Toronto for a substantially taller, rental-focused tower designed by BDP Quadrangle.
The updated plan envisions a 51-storey tower rising approximately 173 metres, marking a striking increase in height compared to prior iterations. The scale reflects both evolving planning policy and the economic realities of delivering new housing in Toronto’s current market.
According to planning documents, the previously approved mid-rise office building did not fully realize the site’s development potential. City planners and the development team now argue that a taller residential building offers a more efficient use of land, particularly given the site’s proximity to transit and established amenities.
BlogTo reports that the proposal is designed to intensify the block while introducing new housing supply, public realm improvements, and community-oriented space within a neighbourhood that has already emerged as a dense mixed-use district.
A defining feature of the redevelopment is the integration of a heritage-designated building at 58 Atlantic Avenue. The ivy-covered, 3.5-storey former industrial structure dates back to 1901 and was originally constructed as part of a manufacturing complex for the Ontario Wind Engine and Pump Company.
For more than four decades, the site produced infrastructure components including steel towers, windmills, motors, and pumps. In recent years, the building has functioned as live-work units. Under the current proposal, the heritage structure would be retained and incorporated into the new development, preserving a physical link to Liberty Village’s industrial past while accommodating substantial new construction above and around it.
The proposed tower would deliver a total of 514 purpose-built rental units. The breakdown includes 464 market-rate rental apartments and 30 affordable rental units. In addition, the plan includes 20 replacement live-work units to offset the loss of existing rental housing in compliance with City rental demolition regulations.
This approach aligns with broader municipal objectives to protect rental stock while expanding housing options. The inclusion of affordable rental units also reflects growing policy pressure to secure affordability within large-scale residential developments.
From a construction perspective, purpose-built rental projects often feature different unit layouts, building systems, and long-term durability considerations compared to condominium towers, influencing everything from structural design to interior finishes.
Beyond residential units, the proposal includes retail space at street level, helping activate the public realm along Atlantic Avenue, Liberty Street, and Jefferson Avenue. Two additional levels of community space are planned on the second and third floors, providing flexible areas that could support programming, services, or shared amenities for residents.
The inclusion of community space within high-density rental towers has become increasingly common as planners seek developments that contribute more than housing alone to their surrounding neighbourhoods.
If approved, the redevelopment would involve demolition of existing low-rise structures, careful protection and integration of the heritage building, and extensive below-grade and vertical construction. A tower of this height would require significant excavation, shoring, foundation work, and a long-duration concrete forming cycle.
Given the constrained urban site and surrounding development, construction logistics, staging, and traffic management would be critical components of the build strategy.
A project of this scale would engage a wide range of construction trades, including:
Selective demolition and heritage protection specialists
Excavation, shoring, and foundation contractors
Structural concrete forming and placing crews
Structural steel and miscellaneous metals
Curtain wall, glazing, and façade installers
Masonry restoration trades for heritage elements
Mechanical, electrical, and plumbing contractors
Fire protection and life safety system installers
Elevator and vertical transportation contractors
Interior framing, drywall, and finishing trades
Streetscape and public realm contractors
The Liberty Village proposal underscores how quickly Toronto’s development priorities are realigning around rental housing. By replacing stalled office and condo concepts with a high-density purpose-built rental tower, BentallGreenOak is positioning the site to respond to sustained housing demand in Toronto.
As approvals progress, the project will test how far the city is willing to support height and density increases in exchange for rental supply, affordability, and adaptive reuse of heritage assets.