Towns on Hall Residences

Offering Description

A luxury 22 unit freehold townhouse development located in Richmond Hill, one block west of Yonge Street. This is a syndicated mortgage investment opportunity.

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Project Overview

Towns on Hall Freehold Townhouses

Towns on Hall is a $22 million residential, low-rise townhouse development built on a 1.3 acre property that is one of the last remaining approved development sites in the core of historic Richmond Hill, Ontario. Conveniently located just one block west of Yonge Street, residents are within walking distance of many shops, restaurants and amenities. The property sits on historic Hall Street with a mix of old and new homes, including a new townhouse development to the north and a high school to the south. The plan is to construct 22 freehold townhouses, each being 3-storeys and approximately 1,900 sf. The developer is LiVante Developments.

Key Region and Project Fundamentals

• Sustainable economic growth and strong population growth
• One of the last remaining approved development sites in Richmond Hill
• Townhouses are each 3-storeys and approximately 1,900 sf and are priced from approximately $990,000 to $1,250,000

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

February 2014
• Land acquired

March 2017
• Draft Plan of Subdivision was granted by the Ontario Municipal Board. With the increased value added and the fact that the site is one of the last remaining approved development sites in the core of historic Richmond Hill, enough value was created to exit the project early.
• Exit was completed by: SALE

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.

$4,400,000CAD

Raised of $4,400,000CAD Goal

Days 0
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Investment complete
 
Debt Percent Offer. Structure
36 months Term
24.35% Est. Return
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