Just around a full year after it was put on the market via a court-ordered sale, the Baillie Street project by Align Properties has now been successfully sold, according to filings in the Supreme Court of British Columbia.
The property is a land assembly comprised of 5589, 5611, 5637, and 5661 Baillie Street in Vancouver, about one block away from the shopping centre formerly known as Oakridge Centre that is currently being redeveloped into a mixed-use hub called Oakridge Park.
Each of the parcels are occupied by a single-family home and Align Properties was planning two six-storey residential buildings with a total of 120 market rental units according to the rezoning application for the project, which was approved by Council in July 2022.
Formerly known as Vivagrand Developments, the land assembly was beneficially owned by Align Properties — the North American arm of Chinese real estate developer Xiangli Group — through Align BC Development (Baillie) Corp. and Baillie 40 Street Ventures BT Ltd.
The Foreclosure
The foreclosure proceedings were initiated in November 2023 by Richmond-based Amber Mortgage Investment Corporation, also known as Amber Financial, pertaining to a loan agreement reached with Align Properties in October 2021 for the principal amount of $5,300,000. The guarantors of the loan were Align BC Properties Corp. and an individual named Zhong Liang, both of whom were also listed as respondents in the proceedings.
The mortgage matured on November 1, 2023, and Amber Financial then issued a formal demand for payment on November 7. After Align Properties still could not pay, Amber Financial then initiated the foreclosure proceedings. The Supreme Court issued the order nisi of foreclosure on May 9, 2024, confirming the outstanding debt at $5,976,290.26, with interest accruing at a daily rate of $2,878.41.
A rendering of the two rental buildings planned for 5589-5661 Baillie Street in Vancouver. / Integra Architecture
The mortgage held by Amber Financial was a second-ranking mortgage, with the first-ranking mortgage held by Desjardins Financial Security Life Assurance Company, who was owed approximately $15 million.
The order nisi also set the redemption date — the day by which the borrower can pay the outstanding amount to halt the foreclosure — at May 10, 2024, after which Amber Financial was allowed to sell the property to recover the debt. The Baillie Street land assembly was then subsequently listed for sale by by Brad Newman-Bennett, Craig Ballantyne, and Martin Delafontaine of Cushman & Wakefield with an asking price of $22,000,000, according to a sales brochure.
The Sale
By December, the listing team returned to the court saying that after extensively marketing the property, they had only received one offer, which was an $18-million offer submitted by Amber Financial through 1487907 BC Ltd. The brokers said the offer would result in a "substantial shortfall" for Amber — the proceeds would go towards the first-ranking mortgage first — but that they would continue to look for offers.
By February, however, no other offer was found and Amber Financial reduced their offer to $17 million, shortening the completion date in return. On February 27, the Supreme Court approved the sale to Amber Financial, who then assigned the property to 1512436 BC Ltd., and the transaction has since closed.
The Baillie Street project was Align Properties' fourth project to face insolvency (out of four, according to its website) and is now the third to be sold. Last year, 1555 Robson Street was sold to GWL Realty Advisors for $58 million, as first reported by STOREYS. GWLRA had previously purchased the adjacent site and has since received approval for two rental towers. A second site, 5812-5888 Cambie Street, was then to Northchild Group for $53 million. A 33-storey strata tower and 12-storey office tower have been approved for the site, but it's unclear if the project will proceed.
The last remaining site that has yet to be sold is 1485 Davie Street, where Align Properties was planning a 21-storey tower with 128 strata units and 51 social housing units and had accrued over $37 million of debt, as first reported by STOREYS. The property remains listed for sale by Avison Young.
