TORONTO, Dec. 8, 2016 /CNW/ - Building and Development Mortgages Canada Inc. (BDMC) announced today that lenders in a syndicate mortgage that funded Bronson, a Lamb Development Corp. (LDC) and Fortress Real Developments Inc. (Fortress) project in Ottawa, received their principal back in full and an estimated annualized return of 8.61%*. Lenders were re-paid 10 months ahead of the loan maturity date.
LDC and Fortress partnered on Bronson three years ago, planned as a 21-storey condominium tower with over 200 units with a mix of ground floor retail shops, apartments, penthouses and a stunning collection of 2-level townhouses. In December 2014, based on the shift in market trends, the development team decided to pivot this project towards a rental building and Fortress reached an agreement to sell their interest in the deal.
"We entered the Ottawa market when we saw a demand for luxury living options in the downtown core. As the market started to shift we felt Bronson was the right project to adapt to the rental demands that were becoming evident. With our partner we arrived at a strategy that would pay back the lenders and still leave us with a valuable asset to develop down the road," remarked Brad J Lamb, President of Lamb Development Corp.
Fortress EVP Frank Margani added, "Real estate can offer tremendous flexibility, with opportunities to exit a development at several different stages. Fortress and our partners are continuously creating value in our projects by achieving appropriate approvals, selling or leasing space, and building desirable real estate."
"Lenders in this project received a healthy return with an early exit in a situation where the strength of the developer and his expertise came into play. The borrower realized the shift in market early in the term and came up with a solution to create value for the project and all its stakeholders." said BDMC principal Ildina Galati. "We are pleased that syndicate mortgage lenders have benefited from this well analyzed opportunity."
Lamb Development Corp. and Fortress Real Developments have partnered on 13 projects together in Ontario and Alberta. Four projects have been completed (three fully occupied), three projects are currently under construction and four are expected to start construction next year.
About the Companies
Building & Development Mortgages Canada Inc. - established in 2007, is a premier mortgage brokerage licensed in Ontario, Nova Scotia, Alberta, Manitoba, British Columbia and Saskatchewan. BDMC closes all of the syndicate mortgage transactions that fund Fortress projects. For more information visit: https://bdmc.ca
Fortress Real Developments Inc. - Fortress is a Canadian real estate development company that seeks out and analyzes opportunities in major Canadian markets. The company is focused on quality projects with recognizable alpha in residential low-rise, high-rise, commercial and industrial market segments. For more information on Fortress projects, visit: https://fortressrealdevelopments.com
Lamb Development Corp. - LDC was founded in 2001 by Toronto's top condominium broker, Brad J. Lamb, to directly participate in the development of stylish, urban condominium projects. LDC has become one of the country's busiest development companies, with each project pioneering up-and-coming locations and delivering a stylish, urban solution to each property. For more information on LDC projects, visit: http://www.lambdevcorp.com
SOURCE Building & Development Mortgages Canada
Image with caption: "Building & Development Mortgages Canada (CNW Group/Building & Development Mortgages Canada)". Image available at: http://photos.newswire.ca/images/download/20161208_C5641_PHOTO_EN_834474.jpg
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