TORONTO, June 8, 2016 /CNW/ - Building and Development Mortgages Canada Inc. (BCMC) announced today that lenders in a syndicate mortgage that funded a Fortress Real Developments Inc. (Fortress) project in Brampton received their principal back in full and an annualized return of 10.04%*, which included 8% per annum over a three year term, plus a deferred lender fee upon exit.
The five acre site in Brampton, located within the Alloa Greens Community, features 20 single-detached houses on the south portion of the development and 35 townhouses on the north portion (previously branded as Mayfield 2). Site servicing and construction on the homes off Clockwork Drive and Agave Crescent, east of Creditview Road is currently underway. Grand Brook Homes and Flato Developments had tremendous sales successes on their respective lots in Alloa Greens.
"Brampton has been one of the hottest markets for new ground-oriented housing for over 15 years" expressed Ben Myers, the Senior Vice President of Market Research and Analytics at Fortress, "the nearly 5,000 sales in the Brampton in 2015 was more the double the next highest municipality, and accounted for more than 25% of the annual total in the Greater Toronto Area."
Frank Margani, Executive Vice President at Fortress addded, "Flato and their consultants have a proven track record for taking vacant lands through the approvals process and creating value for their partners." He went on to say, "we're proud that Flato and Fortress have provided a healthy return on investment to their lenders, and ultimately helped many young families achieve their goal of homeownership."
The initial Rezoning application was submitted in late 2011 and draft plan approval was received in the summer 2013. Marketing of the development started in late 2013 and residential unit sales started in 2014. Construction commenced in 2015.
"This is a perfect example of a well underwritten real estate opportunity" extoled BDMC mortgage broker Vince Petrozza, "strong marketplace for the product type planned, experienced developer with a track record in that municipality, and prudently-purchased land. We are pleased that syndicate mortgage lenders have benefited from this strong underwriting."
This project is the fourth exit by Flato Developments and Fortress Real Developments over the past three years, the third in Brampton.
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. Frank Margani, Mortgage Agent, #M08008842). 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