Fortress Facilitates the Exit of Syndicate Mortgage Holders in an Ottawa High-Rise Condominium Investment

TORONTO, July 30, 2015 /CNW/ - Centro Mortgage Inc., the industry leader in syndicate mortgage offerings, announced the exit of investors in a syndicate mortgage that funded a Fortress Real Developments Inc. (Fortress) project in Ottawa marketed as SoBa Condominum.

Fortress and Lamb Development Corporation (LDC) partnered on a 23-storey condominium apartment project with 240 suites located at 203 Catherine Street, east of Bank Street in Ottawa's downtown core. The 7-storey podium will include about 7,500 sf of retail. The building was designed by Core Architects, with interiors by II BY IV Design and unit sales by Brad J Lamb Realty. Construction is slated to start this year.

"We love the location, the numbers look great, and the design is top notch. Even with changes in the market, investors in the syndicate mortgage that funded SoBa exited prior to completion and still were rewarded with an 8.00% annualized return and a full repayment of principal." said Vince Petrozza, a mortgage broker with Centro Mortgage.

Fortress EVP Frank Margani added, "Real estate offers tremendous flexibility, with opportunities to exit a development at several different stages. We could sell the land, refinance the project at any phase of development like we have with SoBa, or remain in until the development is built and sold. Fortress and our partners are continuously creating value in our projects by achieving appropriate approvals, selling or leasing space, and building desirable real estate."

SoBa is now over 70% sold, and purchasers are looking forward to 2017 when occupancy starts. Purchasers have just recently moved into the Gotham condominium, another partnership between Fortress and LDC in Ottawa.

"The massive boom in Ottawa's new condo market several years ago enticed several new high-rise builders to launch projects, which flooded the market. Unlike Toronto where the increase in high-rise activity was offset by a decline in low-rise activity, there were too many projects chasing too few buyers" suggests Ben Myers, SVP of Market Research and Analytics at Fortress. "In 2014, new condominium apartment completions set a new record high, 65 per cent greater than the previous peak. Private landlords have held off buying additional units as supply and demand rebalance, which it will, as just three new condominium apartment sites launched in 2014 in the Ottawa area."

Fortress CEO Jawad Rathore added, "We think Brad's high-style Lamb Standard will also attract renters. The third Fortress and LDC partnership in Ottawa, a project called Bronson, was originally envisioned as condo. We have now sold our interest in that building off to Lamb who is proceeding with it as a potential rental site. Vacancy rates are low in Ottawa, so we believe the project will lease up quickly."

The creative executive team at Fortress have been able to find solutions to shifting market conditions with the flexibility of their financing structures, and the many alternatives available in real estate. From refinancing syndicate mortgage investors in an under construction condominium, to altering the tenure of an apartment building, these are reasons why real estate is such an attractive asset class for a passive investor.

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: (The following are licensed through Centro Mortgage Inc. - Vince Petrozza, Mortgage Broker, lic# M08007162. 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:

SOURCE Fortress Real Developments

For further information: Media Contact: Natasha Alibhai, Fortress Real Developments,, Phone: (905) 787-9266 ext. 235


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