Brampton-based real estate developer Chacon Developments is facing two receiverships and two power of sale proceedings, according to court filings in Ontario Superior Court and property listings.
The four properties whose fates are now up in the air include a retail plaza, a planned condominium project, a planned seniors housing project, and an industrial property, with all four located in either Brampton or Caledon.
"Started in 1983, the team, a family-run developer in its third generation, has over four decades of experience with projects spanning two continents," the company's website states, referring to projects in North America and Europe.
Strawberry Fields Plaza
On July 19, a receivership order was granted by the Ontario Superior Court against Chacon Strawberry Fields Inc., the registered owner of 12550, 12560, and 12570 Kennedy Road in Caledon, a commercial property also known as the Strawberry Fields Plaza.
The application to appoint a Receiver over the property was submitted by First Source Financial Management Inc., a private mortgage lender based in North York that operates as First Source Mortgage Corporation, pursuant to a first-ranking mortgage for the principal amount of $17,000,000.
The two sides entered into the mortgage agreement in December 2022 that had a maturity date of May 8, 2024. Per their agreement, Chacon Strawberry Fields Inc. was obligated to make interest-only payments every month, with interest accruing at variable rates. In the first 16 months, the interest rate was the higher of 6.00% or CIBC Prime Rate + 2.80%. In the final seven days of the loan term — starting May 2024 — and thereafter, the interest rate escalates to the higher of 18.00% or CIBC Prime Rate + 14.80%, according to court documents.
First Source says Chacon has been in default of the loan since April 2023, when Chacon began registering what ultimately became nine seperate encumbrances on the property without First Source's consent. A construction lien for $99,448.19 was then registered on the property by New Star Renovation Inc. in September 2023, which was then followed by a lien for $44,870 by Vanle Architecture Inc. in December 2023.
The Strawberry Fields Plaza at 12550, 12560, and 12570 Kennedy Road in Caledon. / Lennard Commercial Realty
On May 10, however, the two sides reached a forbearance agreement delaying enforcement of the loan until August 13 or upon a breach of the forbearance agreement. Chacan was still obligated to make monthly interest payments, but immediately failed to do later that same month. It then made either partial or late payments in the weeks after, prompting First Source to re-commence enforcement of the loan and seek out a court-appointed Receiver, Fuller Landau.
According to First Source, the outstanding amount owed as of early-July was $17,093,968.97 plus interest. Among the other aforementioned encumbrances is also a second-ranking mortgage charge for an unspecified amount held by 1794523 Ontario Inc. and $231,267.91 in property tax arrears, as of March 1, owed to the Town of Caledon.
The Strawberry Fields Plaza has been listed for sale, without an asking price, by Lennard Commercial Realty, who note that the property was constructed between 2015 and 2017, consists of 40,192 sq. ft of space across three buildings, and sits on a lot that spans 2.32 acres.
Strawberry Fields Residences
Immediately adjacent to the Strawberry Fields Plaza is 12530 and 12540 Kennedy Road, where Chacon Developments was planning a project called the Strawberry Field Residences on what is currently an extension of Strawberry Fields Plaza's surface parking lot and a grass field.
Earlier this year, the Regional Municipality of Peel approved $7,119,299 in funding for the project through the Peel Affordable Rental Incentives Program that would go towards 14 rental units to be provided at median market rates. Chacon's website says the Strawberry FIeld Residences, originally projected to be completed in 2025, will consist of a four-storey building with 158 condominiums, making no mention of rental units, and the project progressed to the stage of accepting registrations.
12530 and 12540 Kennedy Road in Caledon, the site of the planned Strawberry Fields Residences. / CBRE
The property, however, has since been listed for sale by CBRE via power of sale.
"A development proposal for a 4-storey, 158-unit apartment building with commercial at grade was previously being promoted as the Strawberry Fields Residences," said CBRE's listing team in the saels brochure. "The Site offers an excellent opportunity to acquire a centrally-located infill development parcel with flexible zoning and land use permissions in the highly coveted Mayfield West Secondary Plan of Caledon."
"The Property is designated in the Official Plan for Village Centre Area, Mixed High/Medium Density Residential Area and General Commercial land uses, and zoned Village Core Commercial, permitting a range of residential and commercial uses," CBRE added. "The Site is well-serviced by a regional bus transit route and surrounded by an array of commercial amenities."
Jeevan Niwas
Also listed for sale via power of sale is 9664 Goreway Drive in Brampton, a 3.4-acre site where Chacon Developments was planning a seniors housing project called Jeevan Niwas — a name that translates to "Life Home," the company said in a press release.
The "premium retirement village" was set to include 103 full-service supported seniors rental apartments, 36 assisted living units, and 16 memory care units. In their October 2022 press release announcing the groundbreaking, which was attended by Mayor of Brampton Patrick Brown, Chacon Developments said the project was a collaboration with Origin Active Lifestyle Communities and that the $80 million project is privately owned and funded.
Earlier this year, however, as previously reported by STOREYS, 9664 Goreway Drive was listed for sale via power of sale by Colliers, with an asking price of $14,500,000.
The Jeevan Niwas project planned for 9664 Goreway Drive in Brampton. / Colliers
"The planned community is fully zoned, site plan approved with excavation permit issued and graded," said Colliers. "The community when completed will be comprised of 3 buildings providing Senior independent living apartments. Building A - 5 stories with 71 units; Building B - 85 units and a 2-storey medical/convenience store."
Like the Strawberry Fields Residences project, the Jeevan Niwas project had also reached the stage of accepting registrations, with the developers describing the project as "Transforming retirement living for the South Asian community by providing state-of-the-art facilities and professional accommodation to help them live their golden years to the fullest."
Chacon Developments
More recently, in August, the Ontario Superior Court granted a receivership order against Chacon Holding Corp. at the request of 2439656 Ontario Inc. and MS Capital Corp., who hold a second-ranking mortgage on an industrial building in Brampton and are owed $4.1 million. Court documents did not identify the property, but Chacon Developments' corporate website lists "industrial complexes" under its list of projects.
Court documents in this case also identify Christopher Belaoussoff as counsel for the respondent, along with a Chacon Developments email address, and a website for Chacon Development's Mount Alverno project identifies him as the Executive Director of the company.
Court documents from the Strawberry Fields Plaza case also list Surinder Kaur Chahal as a respondent, who is identified as "an officer, director, and shareholder" of Chacon Strawberry Fields Inc.
Based on Chacon Development's website, the Strawberry Fields Residences and Jeevan Niwas projects are the only ongoing projects in its portfolio. STOREYS reached out to Chacon Developments on November 14, but has not received a response.
