Peakhill Capital and Z Modular announced the closing of a $26 million deal to finance the construction of the first Canadian modular apartment project that will be insured by the Canada Mortgage & Housing Corp. (CMHC).
The project, known as Fuze Lucan, is located in Lucan, Ontario, and will consist of two four-story apartments with 90 units and 141 parking spaces. Modular construction consists of blocks that are constructed off-site and then transported and assembled sequentially on-site. According to the developers, this is a more cost- and energy-efficient approach to multifamily construction and it will help address housing shortage and affordability challenges that define Canada’s housing market.
“We continue to look for opportunities to access efficient, affordable, and flexible financing and have furthered this commitment in the creation of a housing impact fund, slated for launch early next year”, said Jen Harrop, senior vice president of fund management at Peakhill Capital in Toronto.
“Z Modular offers an innovative approach to multi-family housing development that enables accelerated construction timelines” added Mickey McNamara, president of Z Modular in Chicago. “Following construction of the GEM Residence at St. Clair College’s Windsor campus, Fuze Lucan is our second project in Canada, and we’re looking forward to working with Peakhill Capital on this and future projects.”