Earlier this month, the Ontario courts gave the green-light for the sale of development lands and individual vacant lots across Brampton and Caledon that there were anticipated to accommodate a range of single-family homes, townhomes, mid-rises, and high-rises.
Those lands were placed under receivership on June 26 amid allegations that the site owner, Maplequest Ventures Inc., was indebted to its senior secured lenders in the ballpark of $90M. Maplequest has been identified in the court filings as a privately-held real estate development company based in Richmond Hill, Ontario, and the owners of a 49.2-acre development site at 10475 Heritage Road in Brampton, and 19.9 acres between 11229 and 11258 Torbram Road, also in Brampton.
On October 7, the courts issued an approval for Jones Lang LaSalle Capital Markets and RE/MAX Excel Realty Limited to begin the marketing and sales process for the Heritage and Torbram road parcels, as well as another parcel at 0 Dotchson Avenue in Caledon.
According to a marketing brochure put out by JLL and RE/MAX just a few days ago, those four parcels jointly span more than 72 acres, and 100% freehold interest in them is up for grabs. Though they are being marketed as a portfolio, “purchasers have the ability to acquire individual or multiple properties” within it, the brochure notes, “allowing for flexibility in size and use based on buyer preference.”
Specs:
- Address: 10475 Heritage Road, 11229, Torbram Road, 11258 Torbram Road (Brampton), 0 Dotchson Avenue (Caledon)
- Lot Sizes: 49.2 acres, 9.7 acres, 10.2 acres, 1.9 acres
- Entitlement Statuses: No application submitted, Draft Plan of Subdivision approved, Draft Plan of Subdivision approved, Draft Plan of Subdivision approved
- Existing Conditions: Vacant and unimproved, Vacant and unimproved, partially serviced, partially serviced
- Learn more: JLL, RE/MAX Excel Realty Limited
All parcels are set for residential intensification in some capacity, but are in various stages of the entitlement process, the brochure also states. At present, Heritage Road contemplates 2,500 residential units across three high-rise towers, four mid-rise buildings and multiple forms of townhouses, 11229 Torbram contemplates nine townhouse units and 56 single-detached homes, 11258 Torbram contemplates 18 townhouse units and 41 single-detached homes, and Dotchson Avenue contemplates 32 townhouse units.
From left to right: 10475 Heritage Road, 11229 Torbram Road, 11258 Torbram Road, and 0 Dotchson Avenue
The Receivership And Sales Process
According to the June 26 receivership order, which appointed KSV Advisory receiver over the Brampton and Caledon lands, Maplequest’s senior secured lenders were KingSett Mortgage Corporation and First Source Financial Management Inc. At the time the application for receivership was initiated by KingSett on June 14, the aggregate principal amounts outstanding were $47,954,224.90 (to KingSett) and $41,250,000 (to First Source) per commitment letters dated July 28, 2017, and August 31, 2020, respectively.
The court filings state that Maplequest has failed to pay two months of interest payments, pursuant to which the underlying loans matured on March 1, in favour of KingSett, and May 8, in favour of First Source.
In this particular case, there was collateral damage, so to speak. Two development sites in Caledon owned by Digram Developments Caledon Inc. — another privately-held real estate development company, also based in Richmond Hill — are included in the June 26 receivership order, as Digram is one of the guarantors on the loan extended to Maplequest by KingSett specifically.
The Digram-owned sites include lands at 4 Breckonwood Street, 18 Portman Street, and 54 Phyllis Drive, as well as the aforementioned parcel on Dotchson Avenue (all in Caledon).
First report of the receiver, KSV Advisory
A September 30 report from KSV underlines that “with the exception of the detached home being constructed on the Phyllis Drive property — it’s reportedly around 90% complete, but construction stopped when the receivership order went into effect — construction has not yet commenced on any of the real properties,” and that, “with the exception of a pre-sale for the Phyllis real property, no pre-sale agreements have been signed with any homebuyers.”
RE/MAX is the sole listing agent for all of the Diagram-owned lots, according to KSV’s report. It doesn’t appear that the marketing process for the Diagram-owned sites has commenced as of Monday afternoon.
