Nearly a year after being placed under receivership, a development site in Brampton approved for three high-rises and over a thousand residential units has been successfully sold. The CBRE Land Specialists recently announced the sale of the almost four-acre site at 253 Queen Street East in a LinkedIn post.

According to the latest available court filings, the receiver, Rosen Goldberg Inc., appeared before a judge on October 24, 2024, at which time they presented an Agreement of Purchase and Sale dated August 15, 2024. The purchaser is a numbered company known as 10060289 Ontario Inc. At that time, Rosen Goldberg was also seeking an Approval and Vesting Order, although it's not yet publicly available.


It was first revealed that CBRE would be facilitating the marketing and sales process for the development site in June 2024. According to a June 14 motion, Rosen Goldberg obtained proposals from both CBRE and Colliers, and in addition, “reviewed proposals that the debtor had obtained from JLL and Institutional Property Advisors shortly prior to the receiver’s appointment and spoke with representatives of JLL and Institutional Property Advisors following its appointment.”

Separate filings noted that the listing would be unpriced and that CBRE’s commission will be 1.25% of the sale price of the property. In addition, it was stipulated that CBRE’s marketing and sales process would involve “a robust canvassing of the market, involving an eight- to nine-week process to secure an agreement of purchase and sale, followed by a 60- to 90-day due diligence period and a closing 30 days following waiver of conditions.”

An October 7 motion says that CBRE launched its marketing campaign to the public on July 3, 2024, and that three offers were ultimately submitted. “The two highest offerors were invited to re-submit and both did so on August 3, 2024,” it says. “The Purchaser’s re-submitted offer was for a reduced price, although conditions were removed. Although the other offeror increased its price, the price was lower than the Purchaser’s re-submitted offer.”

The purchase price was not disclosed in the court documents, but it is explained that all parties “agreed to extend the time for Court approval to October 31, 2024,” even though the APS could have been taken to the courts for approval after 60 days.

The Development; The Receivership

The development slated for 253 Queen Street East has been in the works since 2019, and was expected to be rolled out in two phases. According to the developer behind the project, U Developments, the site was anticipated to evolve from a low-rise commercial plaza and surface parking lot into a high-density, mixed-use community consisting of three high-rise towers over 3.92 acres. The zoning by-law approved in September 2023 calls for towers 32, 33, and 38 storeys in height.

Between those trio of towers, a total of 1,026 residential units were planned, as well as around 87,768 sq. ft of office space and around 20,020 sq. ft of retail space. The project had drawn in the likes of BDP Quadrangle, as well as award-winning landscape designers DTAH.

The receivership proceedings were initiated by Homedale-Eagle Corporation on January 26, 2024, and the court filings state that the initial mortgage taken on by U Developments on May 2, 2018, involved a term of five years with interest at 3% per annum under a first-ranking vendor take-back mortgage. That loan was then amended on two occasions to extend the maturity date and increase the interest rate to 8% per annum, payable in quarterly instalments of $200,000 on August 2, 2023, November 2, 2023, February 2, 2024, and May 2, 2024.

After receiving notice from its banker on November 7, 2023 that stop payments had been placed on the first two of those installment cheques, and issuing a “formal demand for payment” in the amount of $10,447,829 on November 22, Homedale opted to pursue receivership.

In addition, the court filings say that the property in question is subject to a subordinate mortgage in the principal amount of $2 million registered in favour of Sky Mortgage Corporation. Sky Mortgage is also in financial default.

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