Two years ahead of the end of the loan term, a syndicate of mortgage lenders has been repaid its principal and an average annual return of 8.81%.
The financing was arranged by mortgage broker Building and Development Mortgages Canada Inc. (BDMC) which arranges all syndicate mortgage transactions for Fortress Real Developments.
The syndicate mortgage funded the development of York Downs project in Markham, which was a co-development with Sunrise Homes. The syndicate was repaid through the sale of the townhouse project which increased sharply in value and was sold out quickly.
"Markham is one of the most desirable locations for new housing in the Greater Toronto Area," said Jawad Rathore, the CEO of Fortress. “We were also fortunate to take advantage of the significant increase in the low-rise home market, and were able to achieve our value objective in a much shorter period than originally projected."
BDMC principal broker Ildina Galati explained, "Lenders are seeing healthy returns on these early exits and this is a direct testament to the borrowers we work with, their experience, the strong due diligence they do in terms of understanding the market and the value they create for all stakeholders involved in the projects."
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