Leon’s Furniture plans to build new Toronto neighbourhood with nearly 4,000 housing units

Leon’s Furniture Ltd. has been selling home furnishings for more than 100 years. Now, the company has decided to also sell homes.

The furniture empire, with brands such as Leon’s, The Brick, The Brick Mattress Store, and Appliance Canada, plans on turning one of its large plots of land on the outskirts of Toronto into nearly 4,000 new homes, including rental apartment buildings, single-family houses, townhouses and condos.

It will be Leon’s first foray into residential building. Leon’s Furniture Ltd., or LFL, owns 430 acres of land across the country and is figuring out how it can make money from its vast acreage.

The residential project in Toronto is slated for a 40-acre parcel that lies between two major highways – the 401 and the 400 – north of the city. The site is predominantly fields and currently holds the company’s headquarters and a signature Leon’s retail store with its giant signature yellow sign that is visible from the highway.

“I get a question from friends and colleagues all the time. ‘You guys own that farm field in front of you?’ And the answer is, ‘Yes, we do,’” said Mike Walsh, LFL’s chief executive. “We think we can build 3,500 to 4,000 homes of different designs and types to maximize the space,” he said.

LFL is in the early stages of planning. It will start with building a new head office and new Leon’s retail store to replace the ones on the site. Then, it will move onto developing the residential real estate.
Leon’s is the latest to jump into the residential building business in Canada, as the federal government attempts to deal with the lack of affordable housing across the country.

The high cost of real estate had already priced many out of the market before the Bank of Canada started raising interest rates in March, 2022, which caused borrowing expenses to soar. Then, over the past year, rental prices shot up as landlords eliminated pandemic-related discounts and record levels of new immigrants and temporary residents increased demand for shelter.

In order to encourage more developers to construct apartments that are purposely built for rental, Ottawa has eliminated the 5-per-cent federal goods and services tax on new units.

Mr. Walsh said LFL has not yet made a decision on what portion of the new housing will be rental. He hopes his company will be able to use the tax break, which applies to rental construction that begins by 2030 and is completed by the end of 2035.

Leon’s is following the playbook of other big-box retailers and mall operators, which have been changing their properties into residential units, warehouses and office buildings.

RioCan REIT has been developing its shopping centres into a mix of apartment buildings, condos, offices and retail. SmartCentres REIT, whose shopping plazas are dominated by Walmart stores, has been redeveloping some of its land into a similar mix. And Hudson’s Bay Company sold off some of its coveted department stores and changed one floor of its Toronto department store into a co-working space.

Leon’s, The Brick and other LFL brands are known for their large square footage with warehouses, which allow customers to take home their furniture or appliances immediately. But as shopping has changed and more customers order online, LFL has been building smaller stores and warehouses or distribution centres that are centrally located.

Currently, LFL has 303 stores, 22 warehouses and eight distribution centres in the country. Nearly three-quarters of LFL’s 430 acres is pretty much vacant with parking lots, fields or farmland.

LFL has already said it wants to hive off some of its real estate into a publicly-traded REIT, or real estate investment trust.

“It’s about making the best use of the land,” said Mr. Walsh.

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Leon’s Furniture Ltd. announced on Monday that it is closer to developing a master-planned community that includes 4,000 residential units in Toronto.

The furniture retailer received rezoning approval from the Ontario provincial government in December 2023 for the 40 acres of land it plans to develop for mixed-use including residential, commercial and retail elements. This follows an earlier approval it got from the City of Toronto in July 2022.

“By establishing more density as part of a multi-year, multi-phase development, we will be helping to meet the overwhelming demand for additional housing within the city, while generating substantial value for LFL shareholders,” chief executive Michael Walsh said in a press release.

The land is bordered by Highway 401 to the north, Highway 400 to the west/southwest and Jane Street to the east, municipally addressed as 45 and 88‐100 Gordon Mackay Road, and 11 and 35 Suntract Road.

The company’s home office has been located on this parcel since the company went public on the TSX in 1969.

In an interview with the Financial Post, Walsh said the company currently owns 429 acres of land across the country, which it develops on its own for its stores, warehouses and distribution centres.

The company’s retail banners include Leon’s, The Brick, Brick Outlet and The Brick Mattress Store, which have a combined 303 stores across Canada.

Walsh said that while Leon’s remains focused on retail “because that’s the engine behind this company,” he sees great value in its real estate portfolio.

“Unlocking the value of our real estate is massive,” he said. The company’s land and buildings, which are all unencumbered, are valued at $236 million on its balance sheet, and the shares do not reflect that value, he said.

The company said it expects to complete a secondary plan with the City of Toronto for the 40 acres of land in mid 2025. The first phase of development will focus on construction of a new flagship retail store and corporate headquarters on the site and subsequent phases will focus on 4,000 homes including townhouses, mid- and high-rise buildings and community spaces.

“With this particular site … we believe that we can build 4.6 million square feet of gross floor area,” Walsh said. “And so how you maximize that is through residential, high-rise, low-rise, rental units, townhomes. And so each property is different, but when you want to optimize and intensify land, it’s a mix of a whole bunch of different things.”

Walsh said the company is looking forward to commencing public consultation for the land development after receiving government approval.

In May last year, Leon’s announced its intention to create a real estate investment trust (REIT) for its wholly-owned real estate portfolio, subject to prevailing market conditions and receipt of required regulatory approvals, including approval to list the units on the Toronto Stock Exchange.

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Where Toronto's housing market is headed in 2024

Reviewing key metrics from 2023: Price Changes, Active Listings, New Listings, & Sales Absorption. What does all of this mean for 2024? 

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Toronto Condo Developers SLASHING Prices

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Toronto hate crime reports, incidents up in 2023

In the last three months, reports of hate crimes have quadrupled, according to Toronto Police.

Since the Hamas terrorist attack in Israel on Oct. 7 and the subsequent war in Gaza, police have averaged 190 hate crime-related calls each month, Chief Myron Demkiw told the Toronto Police Services Board meeting on Thursday.

From January to September last year, police say that number averaged just 47 per month.

Demkiw said hate crime occurrences increased by 42%, with 353 incidents in 2023 compared to 248 the previous year.

However, December saw a drop to 10 reports.

More specifically, there were 132 reported anti-Semitic hate crimes last year, compared to 65 in 2022. This year’s numbers made up 37% of all hate crimes reported, police said.

“The statistics are very, very clear,” Demkiw said at a press conference. “There’s an incredible rise of anti-Semitism, and this is something incredibly concerning to me as the chief.

“The lived experiences of our Jewish community and the experiences they are having in this city presently are something we are listening to. We will be bringing a criminal lens to activities going forward to ensure that we are responsive to what the community has told us is a very serious concern for their safety and well-being.”

Cops said it was also troubling to see a 65% increase in LGBTQ2S+ hate crimes reported in 2023. It was the second highest category after 66 reports were made in 2023 compared to 40 the year before.

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In addition, there were 35 reported anti-Muslim/Palestinian/Arab hate crimes in 2023 compared to 12 in 2022.

“As I’ve been saying for months now, criminal acts of hate and intimidation must have no space in our city,” Demkiw said. “Toronto Police Service has been unwavering in our determination to restore the sense of public safety.”

Demkiw added the 308 protests and demonstrations police officers had to manage in the last three months “are escalating and becoming more confrontational, creating significant public safety concerns.”

Police say between Oct. 7 and Jan. 10, there have been 54 arrests and 117 charges related to hate crime occurrences. The most common were mischief (28 charges), assault (22 charges) and uttering threats (17 charges).

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Not just taxes going up at Toronto City Hall, so is Mayor Chow’s salary

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Toronto Mayor Olivia Chow's Massive Property Tax Hike

Brian Lilley, Sun political columnist and Toronto city councillor - Brad Bradford of the Beaches-East York ward, talk about the potential monumental increase to property tax in the upcoming Toronto budget - 16.5 percent increase. Toronto Olivia Chow claims it is a staff budget and not her budget.

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TTC buses used as Toronto homeless shelters

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Toronto cops investigating murder near Queen St.-Roncesvalles Aves. area

A man is dead following a stabbing in the city’s west end, according to Toronto Police.

Officers found a man suffering from stab wounds after they responded to a call in the Queen St.-Roncesvalles Aves. area Saturday at about 11:30 p.m.

Despite efforts of paramedics, who performed life-saving measures at the scene of the stabbing, the victim died later in hospital, said police.

The Homicide Unit took over the investigation. Detectives have released few details.

However, they ask anyone with information to call 416-808-1100.

The fatal stabbing marks Toronto’s second murder of 2024. The city’s first homicide of the new year – a 28-year-old man killed last week in North York – was deemed a murder-suicide.

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Murder-suicide suspected near Bathurst and Baycrest is city's first homicide of 2024

The city’s first homicide of the new year – a 28-year-old man killed Tuesday in North York – has been deemed a murder-suicide.

Toronto Police say officers responded to a call at a residence near Bathurst St. and Baycrest Ave. – south of Hwy. 401 – around 8:20 a.m. on Jan. 2.

Inside the residential unit, they found a man and woman who were both dead.

“The man and woman were known to each other,” Const. Laura Brabant said in a statement released Saturday.

She said the dead man’s body “displayed signs of trauma.”

The victim has been identified as Mert Sozdinler, 28, of Toronto, but how he was killed has yet to be revealed.

“Homicide investigators believe that the deceased woman is responsible for both deaths,” Brabant said. “Investigators would like to speak with anyone familiar with the victim.”

Police did not release the identity of the woman and they have not said what relationship, if any, existed between her and the victim.

At last count, there were 73 homicides in the city in 2023.

Anyone with information regarding this incident is urged to call the Homicide Unit at 416-808-7400 or Crime Stoppers anonymously at 1-800-222-TIPS (8477).

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3 Shootings in Toronto Overnight

Gunfire erupted in several areas of the city overnight but miraculously only one man was injured.

Toronto Police say officers responded to three separate shooting scenes – on in Scarborough and two in North York – in a span of just over two hours.

But it was not immediately known if any of the violent incidents are connected.

Gunshots initially rang out near Ellesmere Rd. and Dolly Varden Blvd. – west of Markham Rd. – around 9:30 p.m. on Friday.

Responding officers found numerous shell casings and several vehicles that sustained damage but nobody was hurt, police say.

Just over an hour later,  around 10:40 p.m., shots rang out again near Lawrence Ave. W. and Dufflaw Rd. – west of Dufferin St. – but this time it was the occupants of two vehicles shooting at each other.

The two vehicles crashed into fence and the occupants ran off, police say.

Both vehicles were found with bullet holes but there were no reported injuries.

Officers responded to yet another shooting an hour later on John Cabot Way – near Jane St. and Sheppard Ave.

It’s believed someone in a vehicle pulled into the roundabout at an apartment building and shot at a parked vehicle, police say.

Officers located multiple shell casings as well as bullet holes in a car and two nearby townhouses.

There were no injuries, police say.

The only person injured by gunfire overnight was an 18-year-old man who walked into a Toronto hospital with a gunshot wound to his arm  around 12:50 a.m.

It’s unknown if his injury is connected to any of the three overnight shootings, police say.Please share this

David Wilfred, 27, and Angelica Cunha, 23 both of Toronto, accused of killing Adam Palermo, 45, of Keswick, near Danforth and Woodbine Aves

A man and woman face charges in connection with the killing of a Keswick man who was gunned down on the Danforth just days before Christmas.

Toronto Police say the deadly shooting unfolded in the area of Danforth and Woodbine Aves. around 11:40 p.m. on Dec. 22.

It was reported there was a group of males involved in a fight and the victim was shot. The 45-year-old man was later pronounced dead at the hospital

The victim has since been identified as Adam Palermo.

Homicide detectives subsequently identified and arrested two suspects.

David Wilfred, 27, of Toronto, is charged with second-degree murder and Angelica Cunha, 23, also of Toronto, is charged with accessory after the fact to commit an indictable offence.

Anyone with information regarding this murder is urged to call the Homicide Unit at 416-808-7400 or Crime Stoppers anonymously at 1-800-222-TIPS (8477).

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Harold Gerstel, better known as Harold the Jewellery Buyer of Toronto fights bid to revoke his licence

A provincial watchdog has accused the well-known cash-for-gold hawker of lacking 'integrity and honesty' in his mortgage business.

Harold Gerstel – better known as Harold the Jewellery Buyer and Harold the Mortgage Closer – is fighting to keep his mortgage licence after a provincial watchdog alleged he’s not operating with “integrity and honesty.”

But his bid to adjourn his hearing before the Financial Services Tribunal has just been turned down as “contrary to the public interest.”

Over the years, Gerstel has become well-known through his cheap TV ads hawking mortgages and cash-for-gold.

“We know how difficult it can be to get a mortgage from the bank,” his website proclaims. “Our process is different! All you need is equity in your home. Call Harold! We are unparalleled in the mortgage industry for making the mortgage process easy for you.”

Gerstel is also known for his many appearances in the news: his Bathurst St. store was once gutted by an arsonist, he was pistol-whipped by an unhappy customer, he’s been embroiled in a nasty decade-long feud with fellow cash-for-gold jeweler Jack Berkovits.

And then he came under the investigative attention of the Financial Services Regulatory Authority following media reports alleging he was involved in a $1.5 million mortgage/renovation fraud targetting elderly homeowner Judy Allen.

According to a January 2023 court ruling, Allen remortgaged her 800-sq.-ft. North York bungalow with Gerstel four times in five months to pay for her 2021 renovation at the shocking interest rate of 22%.

“(Gerstel) described the Allen mortgages as high risk which warranted the admittedly high interest rates. He vehemently denies any conspiracy to harm Allen,” the ruling said.
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The poor old woman defaulted and was forced to sell her home and move into a retirement residence.

In January 2023, a judge agreed the proceeds of the sale should be held in court and not paid to Gerstel while the retired nurse pursued her legal action that claimed Gerstel, the renovator and a lawyer “conspired to bamboozle a sick and elderly lady to enter into unconscionable loans to fund over-invoiced and sub-standard renovations.”

None of the allegations made by Allen, who has since died, have been proven in court and Gerstel denied them all.

But they were enough to raise the regulator’s concern.

According to their notice of proposal (NOP) to revoke his licence, the FSRA called the colourful Bathurst St. broker in for an interview last spring but he failed to show or cooperate with their investigation. He was asked to provide a list of all lawsuits filed against his brokerage but identified only the one filed by Allen.
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However, the FSRA alleges, “Gerstel has been a party in 14 separate civil proceedings in Ontario, which were not disclosed in response to the Inquiry Letter.”

The FSRA also claimed various judges have raised concerns about Gerstel’s honesty and integrity making him unsuitable to operate as a mortgage broker: “The Courts have found that Gerstel has attempted to manipulate the judicial process and has given untruthful testimony under oath. These are serious considerations for a licence renewal application and grounds to refuse to renew a licence.”

The FSRA also proposed to fine him $70,000 for allegedly providing false information and failing to cooperate with their investigation.

Gerstel denied the FSRA allegations and requested a hearing before the Financial Services Tribunal. He also fought to have his statement denying the claims placed on the FSRA website, arguing his brokerage had been in business for 10 years without any complaints from the public or the regulator and that he’d been unfairly defamed.
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The tribunal ruled it didn’t have jurisdiction to order the FSRA to place his denials on their site.

In his most recent unsuccessful motion to adjourn the tribunal hearing, his lawyers complained that the “real prejudice in this proceeding was to Gerstel’s reputation and that his competitors were using the NOP to damage his business.”

Meanwhile, Gerstel has applied to the Divisional Court for a judicial review of the FSRA bid to revoke his licence. It’s not scheduled to be heard until April.

And in the meantime? There are no restrictions on his licence and despite their concerns, Harold the Mortgage Closer continues to operate.

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Damiane Anderson, 19, and a 17-year-old boy, both of Toronto, were charged in North York carjacking, home invasion

A man and an underage teen are facing charges after cops accused them of a carjacking and home invasion in North York last month.

Toronto Police say officers responded to a call for a break and enter in the Yonge St. and Florence Ave. area just before 4 a.m. on Dec. 21.

Cops allege five suspects approached a residence. Two suspects forcibly entered the residence through the back patio.

The suspects demanded the victim’s vehicle keys and threatened the victim with a can of pepper spray, police say.

The suspects fled the scene in the victim’s vehicle.

Investigators were able to obtain images of the suspects from video surveillance.

Toronto Police’s holdup squad, along with the Provincial Car Jacking Task Force and investigators with York Regional Police, identified two suspects, who were arrested.

Damiane Anderson, 19, and a 17-year-old boy, both of Toronto, were charged with break and enter commit, robbery with an offensive weapon, disguise with intent, theft of motor vehicle, and conspiracy to commit and indicatable offence.

Anyone with information is asked to call police at 416-808-7350, or contact Crime Stoppers anonymously at 416-222-TIPS (8477), or online at 222tips.com.

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Toronto just saw the worst year for home sales in 23 years

Roughly 66,000 homes were sold in 2023, the lowest sales recorded since 2000. By comparison, home sales reached a record 121,000 during the 2021 real estate frenzy. 

Toronto-area real estate sales hit a 23-year low as the market took a significant hit last year from high interest rates and a slowing economy.

The total number of home sales reached 65,982 in 2023, according to data from the Toronto Regional Real Estate Board (TRREB), the lowest sales recorded since 2000 — around when Toronto's population was two-thirds its current size. Even during the 2008 financial crisis, homes sales hit 74,500. By comparison, home sales reached a record 121,700 during the 2021 pandemic-era real estate frenzy when buyers jumped into the market taking advantage of historically low interest rates.

The number of GTA home sales in 2023 represent a 12 per cent dip compared to 2022, the report said.

"We hit a record number of sales in 2021 and last year we came in shy of 66,000. It really illustrates the impact that higher borrowing costs have had since March 2022," said TRREB chief market analyst Jason Mercer. "There is a real affordability challenge and make no mistake many want to purchase a home whether they've lived here their whole life or moved here recently. But the higher interest rate environment has been a real road block."

Despite an uptick of new listings during the spring and summer, the number of new listings also declined by 6.6 per cent year-over-year in December. The surge of new listings earlier in the year stemmed from renewed activity in the spring when the Bank of Canada indicated a rate hike pause, Mercer said.

"When the market picks up, that's when people want to put their home up for sale," he added. "There was also the potential of rate cuts coming at the end of 2023, which never came to pass." Instead, the Bank of Canada resumed two more rate hikes in June and July, dampening sales activity into the fall.

"Not only did interest rates jump higher, hurting affordability further, but there was also a psychological hit," Mercer said. "People are really taking a wait-and-see attitude until the Bank of Canada signals or begins cutting rates."


The average selling price for all home types in 2023 was $1,126,604, representing a 5.4 per cent decline compared to 2022. In 2000, the last time sales numbers were this low, the average price of a home was $243,000.

On a seasonally adjusted monthly basis, the average selling price edged up by almost $3,000 last month compared to November, amounting to an average selling price of $1,084,692 for December.

The average price for detached, semi-detached and townhomes all increased year-over-year by 2.5 per cent, 1.7 per cent and 5.5 per cent, respectively, while condos saw a 3.1 per cent decrease. It's been a challenging year for the condo market, which is largely driven by investors, many of whom are over-leveraged and have been selling their units at discounted prices.

While overall demand for housing remained buoyed by record immigration in 2023, the report said, more of this demand was pointed at the rental market.

"In the condo market, which offers a lot of rental supply, or purpose-built rental there have been extremely tight conditions, low vacancies and competition creating a strong upward pressure on prices," Mercer said. "If we continue to see record population growth at record pace there will be continued pressure unless more supply comes to market."


There is some relief on the horizon. Economists forecast that the Bank of Canada could begin to cut rates by April, allowing for renewed buyer interest. It could revive the market come spring, Mercer said.

Already bond yields are trending down resulting in declining interest rates on five-year fixed mortgages, he said, which points toward the expectation that the Bank of Canada will cut rates in the first half of 2024.

"Would-be homebuyers need rates to come down by a certain amount in order for them to enter the market," Mercer said.

 "They're still waiting to see what happens, so market activity really depends on when the bank will cut rates and by how much."

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