A mid-rise condominium project in Kitchener, Ontario, that was paused after it ran into financial problems has a new ownership team vowing to finish construction.
The Canadian mortgage lender Dorr Capital Corporation, ELM Developments, and Gentai Capital Corporation have teamed up to acquire the Elevate Condos project from 1776411 Ontario Ltd. for approximately $75 million. The 3.6-acre property has two 15-story towers and two 12-story towers with a commercial component attached. The project was scheduled to bring 622 new apartments to market by 2029 but was hampered by overruns and a failure to service the loan amid Canada’s rising interest rate and construction costs environment. At the moment, only one of the 15-story towers is more than halfway through construction.
Gentai Capital Corporation will adopt the role of majority stakeholder by providing a loan on the property, while Dorr Capital focuses on facilitating the transaction alongside ELM Forward, a division of ELM Developments that specializes in the construction and development of distressed assets.
“While our plan is to develop all four towers as quickly as possible, our primary focus is to complete the existing tower that stands 65% complete and save the existing sales,” says Brian Dorr, CEO of Dorr Capital Corporation. “We already know we’ll have to reassess the sales strategy for one of the other towers and rental is not off the table.”
Photo: Artist’s rendering of the Elevate Condos
;
