Centro Mortgage Inc. announced on January 12, 2016 that investors in a syndicate mortgage that funded a Fortress Real Developments Inc. project in Burlington received their principle back in full, in addition to receiving over 27%* total return; an 8.25%* annualized return on their investment.
In 2012, Fortress Real Developments and their partners ADI Development Group (ADI) purchased land at 1284 Guelph Line in Burlington, Ontario with the plan to build a 4-storey contemporary mid-rise condominium apartment.
"The site was located in a burgeoning residential neighbourhood with convenient access to the QEW and Highway 407," expressed Jawad Rathore, CEO of Fortress, “We loved the sleek look and boutique nature of the proposed project, which we recognized was lacking not only in Burlington, but throughout the GTA suburbs."
The development was marketed as Mod'rn, and nearly sold out of its 78 units on its first day of public sales, due to its fresh, clean-lined architectural design, and affordable pricing. Construction started in 2013 and the project sold out, occupied and registered by the end of 2015.
Mod'rn Condominium in Burlington is complete and fully sold out (photo courtesy of Fortress Real Developments)
Fortress COO Vince Petrozza added, "Even we were taken aback by the early sales success. ADI's contemporary designs coupled with Baker Real Estate's sales expertise were key to the high unit absorption."
Frank Margani, a mortgage agent with Centro Mortgage Inc., announced the return of capital on a complete exit on the project, "Our Mod'rn project delivered 8.25% annualized returns to investors and full principle repayment at completion. We are thrilled for the purchasers that chose Modr'n as their home, and for the syndicate mortgage investors in this project that received a great return. Proof of concept is a statement we regularly make, and the completion of this building is another example of how syndicated mortgages have added value to the community and to investors."
Fortress and ADI are partnered on two other developments, the under construction Link Condos + Towns in north Burlington, and Station West, an upcoming urban townhouse development adjacent to the Aldershot GO Station in south Burlington.
Details on those projects can be found at www.adidevelopments.com
*SOURCE - Centro Mortgage Inc.