TORONTO, March 17, 2015 /CNW/ - Centro Mortgage Inc. today announced that disciplined risk assessment, a sizzling market and highly sought after low-rise units have generated tremendous returns for investors in a syndicate mortgage that funded a Fortress Real Developments Inc. (Fortress) project.
Vince Petrozza, a mortgage broker with Centro Mortgage Inc., announced the return of capital on a complete exit of a project located east of Sixth Line in Georgetown, Ontario. "We loved the metrics we saw in the Estates of Black Creek project from day one. The loan term was well defined, there were sales already in place and the project was shovel ready. The project delivered 8% annualized returns to investors [in live cash flow], a 1% upfront lender fee and a Deferred Lender Fee at completion. Based on the size of the development and the project metrics, the deal was sold out in a day. Unfortunately, we had to turn away many investors that wanted to participate."
The 20-unit community features million-dollar-plus homes from 3,060 to 4,218 square feet on two to five acre lots. With approximately half of the houses sold and the project well under construction, a Schedule I lender came in with a refinance, returning the capital that was invested in the project by the syndicate mortgage lenders.
"Sales of new homes in the Greater Toronto Area increased 40% in 2014, and new low-rise house prices jumped 8% annually," said Fortress Senior Vice-President Ben Myers. "There is a nearly insatiable demand for single-family homes in the GTA. In Halton Hills specifically, single-detached house prices increased 15% year-over-year."
This Fortress project was funded by syndicate mortgages that were offered to retail investors through mortgage brokerages and brokers, an increasingly popular investment option. Over $175 million was raised in 2014 alone to fund a variety of Fortress projects.
Fortress Executive Vice-President Frank Margani, who identifies and seeks out many of the Fortress development opportunities, helped to assess the strengths of this development project. "The Estates of Black Creek checked off all our boxes, approvals in place, desirable residential product type (single-family homes), experienced developer, and undersupplied market."
A strong demand for new housing in Toronto and its surrounding areas has allowed Fortress to grow its development portfolio significantly over the last two years. With over 60 active projects across Canada and a land portfolio worth well over $1 Billion, Fortress has positioned itself as a leader in the real estate development space. "We are thrilled with the growth we have seen, the strong partners we have added to our roster and the tremendous sites we have acquired over the past few years," said Jawad Rathore, President & CEO of Fortress. "Our team is always looking for great value. Our flexibility and ingenuity has been the catalyst for the growth and success we are experiencing today."
This is the first of two sites that Fortress has completed in the area. Approvals for the nearby Glens of Halton Hills site are being completed and it is expected to yield more than 177 residential units.
About the Companies
Centro Mortgage Inc. - Centro Mortgage Inc., established in 2007, is a premier mortgage brokerage licensed in Ontario, Nova Scotia, Alberta, Manitoba, British Columbia & Saskatchewan. Centro closes all of the syndicate mortgage transactions that fund Fortress projects. Syndicate Mortgages offered by Centro are RSP eligible and allow consumers to invest directly into the proven market of Canadian real estate by becoming a mortgage lender. For more information visit: http://fortressrealcapital.com (The following are licensed through Centro Mortgage Inc. - Vince Petrozza, Mortgage Broker, lic# M08007162. Ben Myers, Mortgage Agent, lic# M13001264. Frank Margani, Mortgage Agent, lic# M08008842)
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 Centro Mortgage Inc.
For further information: Media Contact: Natasha Alibhai, Fortress Real Developments, [email protected], Phone: (905) 787-9266 ext. 235