TORONTO — B’nai Brith Canada is planning to sell its signature property on Hove Street in Toronto, which houses its national headquarters.
The property carries two mortgages totalling nearly $4 million, and in 2012, the market value assessment was set at slightly more than $3 million, leaving open the question of how much B’nai Brith can net from the sale.
Michael Mostyn, CEO of B’nai Brith Canada confirmed last week that “there has been interest in the property for a number of years, with many unsolicited proposals and expressions of interest.
“We decided recently to explore the options and will examine them in June once they are all submitted.”
Where that leaves B’nai Brith Canada remains unclear. Mostyn took over as CEO in September 2014, replacing Frank Dimant, who retired after 36 years with the organization. In January, early in his tenure, B’nai Brith announced it was suspending print publication of its weekly newspaper, the Jewish Tribune, which it had published, first as The Covenant, since 1964.
The building at 15 Hove sits on a corner lot that backs onto a plaza. The 43,560-square-foot property is zoned for commercial use. According to title documents obtained from Ontario’s Land Registry Office, the property was owned in 1989 by B’nai B’rith Youth of Toronto. It was sold in October 1996 to Sherfam Inc., a holding company with interests in pharmaceuticals, for $1.2 million.
In July 1998, Sherfam sold it to B’nai Brith Congregation Synagogue, its current owner, for $1.2 million, and Sherfam registered a $1.2 million mortgage on the property the same day.
Over the years, B’nai Brith discharged various charges on the property, owed to Sherfam, the Apotex Foundation, the Sherman Foundation, Toronto lawyer Melvyn Eisen, a numbered company, Communications Technologies Credit Union Limited and B2B Trust.
On May 27, 2013, Communications Technologies Credit Union registered a five-year mortgage of $2.995 million on the property, with monthly payments of $18,471.07, at an interest rate of 4.24 per cent. On Jan. 1, 2014, Eisen registered a $1 million charge on the property, payable over two years, with an interest rate of eight per cent and with monthly payments of $6,666.67.
Assuming B’nai Brith did not miss any of the $25,000 monthly payments, it would have paid more than $440,000 toward the first mortgage and $113,000 toward the second, leaving substantial amounts still owing and reducing the net proceeds from a sale.
Asked to comment on the charges on the land as well as whether the cost of the monthly payments was prompting the sale, Mostyn said in an email: “As we’ve said previously, the new management of B’nai Brith Canada is reviewing all services, assets and investments to ensure that B’nai Brith has a stable future and is better able to provide the services its members and the community expect and deserve.
“We know that some of your speculation regarding the value of the property is dated and not accurate, and, in fact, initial response to the offering has been quite strong. We believe strongly in the value of this property to the community. As such, we are not able to comment further on the disposition of 15 Hove until the call for proposals has closed, the proposals have been reviewed and a new direction has been chosen.”
In an earlier email exchange, Mostyn was asked whether B’nai Brith was selling other properties. Mostyn replied that the organization delivers services to the needy, engages youth and delivers food baskets.
In addition to the Hove Street property, B’nai Brith owns seniors residences in Toronto, Montreal and Vancouver.
And as well as housing B’nai Brith’s headquarters, 15 Hove serves as “a community hub for a diverse range of events and activities in support of both the Jewish and local community,” Mostyn said.
It’s likely those uses will change under new ownership, though local city councillor James Pasternak thinks B’nai Brith will remain on site for some time after a sale. “My gut feeling is that [B’nai Brith] will stay as a tenant for a transition period until they find a new headquarters,” he said.
It may take some time for the new purchaser to apply through city channels to have it re-zoned, or they could choose to use the building as is. Either way, “it’s a prime piece of real estate,” Pasternak said.
So will B’nai Brith eventually move to a smaller location? “With respect to our national office in Toronto, we will be making a future announcement in due course,” Mostyn said.