Auberry, the second of four projects by real estate developer iFortune Homes that were facing foreclosure last year, has changed hands as part of a court-ordered sale, according to filings in the Supreme Court of British Columbia obtained by STOREYS.
The Auberry project was planned for 463 W 59th Avenue in Vancouver, a 0.55-acre site located between the Langara Golf Course and Winona Park near Cambie Street. For the site, iFortune Homes was planning two six-storey buildings with a total of 63 strata units, according to a City of Vancouver rezoning report. The project had progressed to stage of accepting pre-sale registrations.
Comprised of four single-family parcels — 441, 449, 455, and 463 W 59th Avenue — that were consolidated in August 2021, 463 W 59th Avenue was beneficially owned by iFortune Homes under iFortune West 59 Holdings Ltd.
The Foreclosure
The site of the planned Auberry project at 463 W 59th Avenue property in Vancouver. / CBRE
As first reported by STOREYS in September, the foreclosure proceedings against the property were initiated on April 17, 2024 by Magnolia V3 Limited Partnership, which is controlled by its general partner, 1282882 BC Ltd.
According to court documents, the foreclosure was pertaining to a first-ranking mortgage agreement the two sides entered into on March 23, 2021 for the principal amount of $16,000,000. The guarantors of the loan, also listed as respondents, were iFortune West 59 Limited Partnership, Xuling Holdings Ltd., and Feng Luan.
In March 2022, the mortgage was renewed and had a maturity date of April 21, 2023. In March 2023, it was then renewed and extended once more to April 21, 2024.
Just prior to the maturity date, iFortune defaulted on the loan agreement and Magnolia V3 issued a demand for payment on March 27, with the outstanding amount owed on that day at $16,396,770.18, with interest accruing at a daily rate of $11,230.66.
Other registered charges include a second-ranking mortgage held by Globalwide Capital Management Corporation for an undisclosed amount, a third-ranking mortgage held by 1431250 BC Ltd., and a certificate of pending litigation registered by 1139885 BC Ltd, 1139684 BC Ltd., and Uniwill Investments Inc.
On July 25, the Supreme Court granted an order nisi of foreclosure that confirmed the outstanding debt at $17,802,232.66 and set the redemption date — the date by which the debtor can pay the outstanding amount to halt the foreclosure — at July 26.
The Sale
The courtyard between the two Auberry buildings planned for 463 W 59th Avenue. / WT Leung Architects
iFortune Homes was unable to redeem the mortgage and the property was subsequently listed for sale on August 14 by Adrian Beruschi of CBRE with an asking price of $20,000,000.
According to court documents, CBRE received 25 enquiries and around 12 to 15 calls from interested developers. Four interested parties toured the property and two offers were ultimately made to buy the property.
The first offer was made on September 16 by an undisclosed party for $12,000,000, but the offer was rejected. On November 16, an offer was then made by 1509737 BC Ltd. to buy the property for $16,300,000, with a deposit of $300,000. The foreclosing lender made a counter-offer of $16,500,000 and a deposit of $500,000, which the buyer accepted.
The transaction was approved by the Supreme Court on December 9 and has since been completed.
Although the sale price was somewhat far off from the asking price, the final sale price is higher than the current BC Assessment valuation of $14,262,000 and is also higher than the $15,800,000 appraisal received for the property in November 2024 by LW Property Advisors.
It is unclear who is behind 1509737 BC Ltd., a company that was incorporated on November 1, 2024, but the identity of the buyer will likely be revealed as the Auberry project progresses. In addition to Auberry, iFortune's Elm41 project in Vancouver was also recently sold as part of foreclosure proceedings.
