The Brant Park

Offering Description

A luxury 11-storey residential condominium with 243 units located in Toronto’s Brant Park district. This is a syndicated mortgage investment opportunity.

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Project Overview

The Brant Park Condo

High Design Condominiums on the Park

The Brant Park is a $90 million luxury condominium development project located at 438 Adelaide Street West, on the northeast corner of Adelaide Street West and Brant Street in downtown Toronto across from St. Andrews Park. The development is an assembly of six properties (21,400 sf – 426 to 438 Adelaide Street West) that consists of 243 units over 11-storeys. The six properties were closed between May 2011 and August 2012. The initial zoning by-law amendment and site plan application was submitted in July of 2011. The sales of the project launched in October of 2011, with demolition of the on-site structures commencing in the summer of 2013. Excavation started in late 2013, with occupancy scheduled for early 2016. Suites range from a 368 sf studio to a 1,466 sf 2-storey penthouse, with pricing from $223,000 to over $1.1 million. The project is designed by Architect Alliance, interiors were programmed by II by IV Design and the developer is Lamb Development Corporation.

Key Region and Project Fundamentals

• Sustainable economic growth and strong population growth
• Percentage of condominium units sold at completion was 100%
• Average project with standing inventory launched at $550 psf is offering unsold supply at $750 psf
• Suites range in size from 368 to 1,466 sf and are priced from approximately $223,000 to over $1.1 million

Key Underwriting Parameters

The following pro-active measures are applied to seek to reduce financial risk during the development process:
• Canadian real estate focus
• Conventional mortgage structures
• Short to Mid-term development mortgages - opportunity to reassess risk frequently
• Solid underwriting - rigorous analysis, visit each property, know each borrower
• Diversified portfolio - by size, borrower, geography and property type
• Borrower has equity in the project
• Well developed exit strategy - clear path to repayment
• Extensive project monitoring

Project Milestones

June 2011
• Property acquired by Lamb Development Corp (LDC)

May 2017
• Exit was completed by: COMPLETION

How Do I Exit?

A project exit can be realized in 3 ways:

  1. COMPLETION: The project is constructed and the proceeds from the sale of units is used to pay off any land, construction and syndicate loans. Investors exit.
  2. REFINANCE: The project has increased in value, through development, market conditions or work in place and a new loan is sought to replace the syndicate loan. Investors exit.
  3. SALE: Rather than individual units the entire project (or significant portion) is sold (at any time) and the cash from the sale pays off the syndicate loan. Investors exit.

The return of capital can be any combination of principal, interest, fees and/or profit sharing of funds.

Risk Factors

• Investments in syndicated mortgages are speculative and involve a high degree of risk. Investors should be aware that this investment has the usual risks associated with financing real estate and risk associated with syndication.
• There is no market for the syndicated mortgage nor there any assurance that a market will develop.
• There is no liquidity for the duration of the term for this project. Investors may not be able to liquidate their investment on a timely basis and participations may not be readily accepted as collateral for a loan. Investment in participations should only be considered by those investors who are able to make a long-term investment and bear the economic risk of a complete loss of the investment.
• The ability of the Borrower to repay the amounts outstanding under the syndicated mortgage, and the payment of the deferred lender fee, in particular, is dependent on the ability of the Borrower to arrange construction financing to develop the project and on the subsequent development and sale of the project. All real estate developments are subject to risk. Such developments are affected by general economic conditions (such as changes in interest rates and the availability of mortgage funds), and local conditions (such as supply and demand for property and competition from other available developments).
• The development of a project may not generate sales of units as rapidly as anticipated, or for the sale prices anticipated. The redesign of a project may result in a material change which may result in cancellation of some or all of the existing presales.
• Purchasers to date may elect to terminate their agreements and the sale of their unit may not occur as rapidly as anticipated.
• There is a risk that cost overruns may occur and decrease anticipated profits to the Borrower.
• The Borrower’s debt service obligations may rise with increases in interest rates. In particular, the cost of the construction financing mortgages will increase with any increase in interest rates.
• The development of a project may not be completed within the anticipated time frame, or at all, which in turn could delay payment to participants or put repayment at risk.

For a full discussion of Risk Factors, please refer to the subscription agreement.

$8,000,000CAD

Raised of $8,000,000CAD Goal

Days 0
Hours 0
Mins 0
Investment complete
 
Debt Percent Offer. Structure
71 months Term
47.43% Est. Return
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