$10 Million Default Halts 1,000-Unit Residential Project In Brampton
The property owners failed to meet their loan obligations, resulting in creditors seeking over $10,447,000 in payments and the initiation of court proceedings to place the company in receivership.
Brampton’s vision for a trio of high-rise towers, featuring over 1,000 residential units, faces a significant setback as the property owner defaults on a $10 million loan. Last autumn, zoning bylaw amendments were greenlit by the city for a three-tower housing development situated at 253 Queen St. East.
The ambitious high-rise project, with towers standing at 32, 33, and 38 storeys, aimed to introduce a total of 1,026 residential units to Brampton, complemented by office and retail spaces. However, recent court documents reveal that the property owners failed to meet their loan obligations, resulting in creditors seeking over $10,447,000 in payments and the initiation of court proceedings to place the company in receivership.
Homedale-Eagle Corporation originally sold the 1.57-hectare development site near Queen Street and Hansen Road to 253 Queen St. East Inc. for $15.5 million in 2018. The owners, however, missed a $400,000 quarterly interest payment in November, some of which had been deferred from August.
The loan, initiated in May 2018, had a five-year term with 3 percent annual interest under a first-ranking vendor take-back mortgage. Additionally, documents reveal the property is under a subordinate mortgage of $2 million, held by Sky Mortgage Corporation, which is also in financial default.
With a formal demand for payment totaling $10,447,829.55 from Homedale, Ontario Superior Court Justice Michael Valente has appointed Rosen Goldberg Inc. as the receiver of the owner’s lands, overseeing the property’s sale.
Designed by BDP Quadrangle for U Developments, the project, as Valente notes, is “substantial and complex,” requiring significant skill and expertise for effective marketing and sale.