The lenders of a syndicate mortgage that contributed to a development in Brampton, Toronto have exited the project, according to sources familiar with the parties involved.
In a report by CNW Online
, the investors of the Fortress Real Developments Inc. project—boasting of 35 townhouses and 20 single-detached properties—reportedly got their full principal back, as well as an annualized return of 10.04 per cent (8 per cent per annum over three years).
Fortress officials expressed elation at the project’s success.
“We're proud that [Flato Developments] and Fortress have provided a healthy return on investment to their lenders, and ultimately helped many young families achieve their goal of homeownership,” Fortress executive vice president Frank Margani said.
“Brampton has been one of the hottest markets for new ground-oriented housing for over 15 years. 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,” senior vice president (market research and analytics) Ben Myers added.
Observers have cited the Brampton development as a valuable example of a real estate project backed by good underwriting.
“[A] strong marketplace for the product type planned, [an] 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,” BDMC mortgage broker Vince Petrozza stated.