TORONTO, June 7, 2016 /CNW/ - Lenders in a syndicate mortgage that funded a Fortress Real Developments Inc. (Fortress) project in Richmond Hill, Ontario received their principal back in full, and an annulaized return of 8.30%* over a 3 year term, according to Building & Development Mortgages Canada Inc. (BDMC).
In 2013, Fortress partnered as development consultant with Best Homes Canada to assemble a series of properties at Harris Avenue and Beech Avenue (Harris Beech) in Richmond Hill. The planned 3.7 acre infill development is located in a mature residential area which backs onto a natural ravine. This project is planned for 24 single-detached homes, each with approximately 39' of lot frontage. Adjacent properties were also recently added to the assembly.
"Tremendous value was created at the Harris Beech development through the smart land assembly spearheaded by our team and partners. As the saying goes, the whole is greater than the sum of its parts," said Jawad Rathore, the CEO of Fortress.
"Low-rise housing builders and developers are quickly running out of inventory to sell, and the unsold supply of ground-oriented homes declined 48% in April according to Altus Data Solutions" expressed Ben Myers, the Senior Vice President of Market Research and Analytics at Fortress. "This shortage of supply has driven up land values, and owners of near-term development land are very popular."
Mark Fogliato, Director of Acquisitions and Portfolio Management at Fortress added, "Draft plan approval for the Harris Beech development is expected in 2016, and the site could be shovel-ready by the end of the year. We were inundated with enquiries regarding the availability of the site and ultimately decided to sell the property based on the attractiveness of the offer."
"This is another perfect example of how there are multiple exit strategies for syndicated mortgage lenders," said BDMC mortgage broker Vince Petrozza. "The undersupplied single-family housing market combined with a marketable site taken through the bulk of the land approvals process, resulted in a much more valuable site in 2016 than three years earlier."
This project represents the 14th time syndicated mortgage lenders have exited a Fortress project.
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. (The following individuals are licensed through Building & Development Mortgages Canada Inc. - Vince Petrozza, Mortgage Broker, #M08007162. Ben Myers, Mortgage Agent, #M13001264. Mark Fogliato, Mortgage Agent, #M14002065). For more information visit: http://www.bdmc.ca
Fortress Real Developments Inc. - Fortress Real Developments Inc. 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: http://fortressrealdevelopments.com.
*SOURCE Building & Development Mortgages Canada Inc.
SOURCE Building & Development Mortgages Canada
For further information: Natasha Alibhai, Fortress Real Developments Inc., natasha@Fortressrdi.com, Phone: (905) 787-9266 ext. 235