Vaughan-based Kaleido Developments has found itself caught up in its second and third receiverships in under four years, according to new filings from the Ontario Superior Court of Justice. Both receivership orders, issued on July 24 with Rosen Goldberg Inc. appointed monitor, were initiated by Romspen Investment Corporation, a Toronto firm specializing in commercial mortgage financing.
Of particular note is the receivership over a new build at 485 Logan Avenue, which is south of Gerrard Street East in Toronto’s Riverdale neighbourhood. The development, known as Elevate at Logan, is a four-storey, 41-unit stacked townhouse complex, and a July 8 factum from Romspen specifies that the property presently includes 11 unsold townhouse condominium units, two unsold parking units, five unsold combined parking and locker units, and five unsold locker units.
Romspen’s factum further delves into the details of the loan agreement with Kaleido, noting that the initial commitment letter was entered into on November 30, 2021, and was amended six times thereafter, with the last Modification and Extension Agreement dated December 1, 2023.
“Pursuant to the Commitment, Romspen agreed to lend the Debtor the principal amount of $30,620,000, with interest at the rate of 9.75% per annum (increased from 8.75% per annum pursuant to the First Mortgage Loan Modification and Extension Agreement), to be funded by way of advances,” the document says. It also says that Romspen made a total of 14 advances under the Loan.
Advances Made By Romspen Under The Loan:
- December 22, 2021 — $18,281,886
- March 11, 2022 — $811,648
- April 28, 2022 — $306,606
- May 26, 2022 — $1,253,943
- July 28, 2022 — $1,339,227
- October 7, 2022 — $1,393,273
- November 30, 2022 — $804,141
- December 22, 2022 — $599,533
- February 17, 2023 — $857,649
- March 31, 2023 — $899,679
- May 2, 2023 — $1,197,725
- June 1, 2023 — $649,092
- August 10, 2023 — $1,147,129
- September 30, 2023 — $430,055
The loan was originally scheduled to mature after 12 months, but was extended on numerous occasions, most recently to February 1, 2024. However, by that date, the loan had not been repaid, Romspen’s factum says. Demands for payment were made on three separate occasions and, as of May 1, 2025, the amount owing under the loan was approximately $14,118,249.
“The Debtor has not sold any units at the Project since September 2024,” the document adds.
David Martino is the sole officer and director of Kaleido, and according to his sworn affidavit, dated July 21, the Logan Avenue project experienced “significant deficiencies, including Ontario Building Code violations,” which he says, “came to light in January of 2022 when a deficiency report led to the termination of the general contractor and a general review of professional services provided to the project.”
The affidavit goes on to allege that the original architects, mechanical and structural engineers, and framework suppliers' negligence, combined with the Rompsen’s refusal to advance additional funds after an alternate agreement with Rafat General Contracting Inc. was negotiated, contributed to an 18-month delay on the project that led many unit purchasers to exercise their right to terminate under the Tarion Warranty. As a result, those deposits were refunded. “In the meantime, given the precipitous market drop, the unsold units remain on the market for sale at a significant discount,” the affidavit explains.
485 Logan Avenue as of October 2023/Google Maps
This is not the only Kaleido project in distress as Romspen also provided financing for the developer's distressed project at 416 Dundas Street East in Whitby. According to Ontario court filings that align in date with filings for 485 Logan, the 0.94-acre parcel at the northwest corner of Dundas Street East and Pine Street in Whitby has Site Plan Approval in place for a seven-storey building with 105 residential units and 119 parking stalls, however, the project has been at a standstill since October 2022. Romspen alleges it's currently owed more than $11 million, plus interest, as of August 12, 2024.
Martino did not respond to STOREYS’ request for comment by publication time Tuesday regarding both the 485 Logan and 416 Dundas receiverships. 485 Logan Avenue is the only completed or ongoing project listed on Kaleido’s website.
As mentioned previously, 485 Logan and 416 Dundas mark the second and third receiverships linked to Kaleido in under four years. Back in December 2021, the courts appointed Rosen Goldberg receiver over 665, 667, 669, and 671 Sheppard Avenue West, after Dorr Capital Corporation went on record saying that the company owed around $8,583,443 as of November 2021 under a first-ranking mortgage (with per diem interest of around $3,455 accruing).
At that time, the property was slated for a five-storey condo with 56 units, seven condominium townhouses, and two stacked townhouses, but was sold to a numbered company (2869773 Ontario Inc.) shortly after the receivership order was granted. A report that went to Toronto City Council in July 2024 reveals that the property is now being developed by Toronto-based The Biglieri Group, which has since secured zoning approvals for an 11-storey condo with 256 units and retail component on the site.
