TORONTO, Dec. 7, 2017 /CNW/ - Building and Development Mortgages Canada Inc. (BDMC) announced today that lenders in a syndicate mortgage that funded a Fortress/Lamb high-rise residential development have exited the project well ahead of the loan term. Over 300 lenders in the syndicate received an estimated annualized return of 9.2%*.
Lenders were paid out through a refinance of the project prior to the start of construction, an opportunity made possible by a significant increase in equity ahead of schedule. The underwriting structure of the project capitalized on the tremendous value created by the Zoning By-Law Amendment and Site Plan Approval approvals attained by the development team, as well as the high sales absorption achieved by Brad J. Lamb Realty. Remaining inventory in the development is currently priced at over $1,000 per-square-foot, capturing the recent increase in downtown condo prices.
"East Fifty Five is the third Fortress & Lamb Development Corp condominium in downtown Toronto that has exited in just the last 12 months," stated BDMC Principal Broker Ildina Galati. "The downtown condominium market has proven prosperous for syndicate mortgage lenders, as the borrowers are well versed in selecting, acquiring, entitling and selling high-rise projects."
"We continue to benefit from key acquisitions in the Toronto housing market, and are extremely pleased that our belief in the downtown east area as the next hot neighbourhood has come to fruition," added Fortress CEO Jawad Rathore. "It is a testament to the vision of our partner Brad Lamb, one that is aligned with ours, as we continue to identify valuable opportunities for all our stakeholders."
East Fifty Five is the 10th project that has exited in 2017, and those projects have paid back over $100 million of lender principal. Projects have exited through a variety of mechanisms available to the development partnerships including, completion of the build-out with delivery of more than 1,700 units, a sale of the development site, and a refinancing of the project.
BDMC has now exited more than 3,500 lenders from 27 development projects with over $170 million of lender principal paid back to date. The average estimated annualized returns for these exits are 9.15%* (unweighted). Our brokerage has helped over 14,000 lenders participate in syndicate mortgages in more than 80 projects across Canada. The projects include all types of residential and commercial developments, offering a variety of terms and built forms for lenders to choose from. Through BDMC, more than $920 million has been funded into development projects to date, with the projects having a total built-out value of $6 billion.
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. 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. https://fortressrealdevelopments.com
*SOURCE Building and Development Mortgages Canada Inc. (BDMC)
SOURCE Building and Development Mortgages Canada Inc. (BDMC)
For further information: Media Contact: Jenni Byrne, Bayfield Strategy Inc., [email protected], (647) 477-3576