A large retail complex could be built just north of the Toronto Eaton Centre. We received word from a source saying that we should be paying attention to the east side of Yonge Street between Gerrard and Gould Streets. 
Primus (red) and Ryerson (yellow) owned properties in the potential mall area [Source]
For some time, Primaris REIT had been quietly purchasing properties on the Yonge Street block, adjacent to Ryerson University. Ryerson owns the southern portion of the site which was formerly home to Sam The Record Man.  

Based on the above, Primaris appeared to be considering redeveloping the block and notes that it is open to further land assembly (acquiring adjacent properties for amalgamation).

On April 4, 2013, Kingsett Capital and the Canada Pension Board purchased Primaris' Yonge Street properties. We are awaiting to hear back from Kingsett as to their intentions for the block. 
Ryerson Student Centre, currently under construction at the south-end of the site [Image Source]
Ryerson University has also noted that it could consider redevelopment of its portion of the block, along with lands immediately north. This has been set out in the Ryerson University Master Plan. It should also be noted, however, that the Ryerson Student Centre is currently under construction on the Ryerson-owned site. We're not sure if there is a possibility that it could become integrated into a joint retail project.

Source: Ryerson University Master Plan
All of the above is currently speculation and we have little further information at this time. If such a project did go ahead, it could provide retail space for multiple retailers plus one or more large retailers seeking Downtown Toronto space including Nordstrom, La Maison Simons and Target. A source tells us, however, that they expect Target could secure space in the neighbouring Atrium On Bay building which is also undergoing redevelopment. 

Ryerson University has previously entered into joint ventures with retail developers, including the Ted Rogers School of Management building adjacent to the Toronto Eaton Centre. 

We extend thanks to Gil Meslin, urban planner at DIALOG for directing us to the Ryerson University master plan and related information and to his coworker, David Fitzpatrick, for directing us to the Primaris information. David has an excellent urban planning blog called Reurbanist and we follow his twitter daily.