The Elm41 project that was started by Richmond-based real estate developer iFortune Homes has now been sold to Vancouver-based Landa Global Properties, according to filings in the Supreme Court of British Columbia obtained by STOREYS.
Elm41 was planned for 2465 W 41st Avenue in the Kerrisdale neighbourhood of Vancouver, where iFortune Homes was planning a 23-unit strata building that had progressed to the stage of accepting pre-sale registrations.
The property — a vacant lot at the corner of W 41st Avenue and Larch Street, across the street from Elm Park — was beneficially owned by iFortune Homes under iFortune West41 Holdings Ltd.
The Foreclosure
As first reported by STOREYS, foreclosure proceedings against the property were initiated on August 18, 2023 by CMLS Financial, a non-bank lender that was acquired by Nesto in June 2024.
According to court documents, the foreclosure was pertaining to a first-ranking mortgage agreement the two sides entered into in September 2019 for the principal amount of $13,000,000.
Beginning in March 2023, iFortune Homes became unable to make their monthly payments. CMLS then issued notices of default and iFortune subsequently made a payment in June. However, in July, "When CMLS attempted to debit this monthly instalment from the Borrowers' bank account, CMLS was advised the account had insufficient funds," resulting in another default that prompted CMLS to pursue the foreclosure.
On September 21, 2023, the Supreme Court granted an order nisi of foreclosure that confirmed the outstanding debt at $13,444,005.33 and set the redemption date — the date by which the debtor can pay the outstanding amount to halt the foreclosure — at March 21, 2024.
The Elm41 site at 2465 W 41st Avenue in Vancouver as of May 2024. / Google Maps
Concurrently, foreclosure proceedings had also been initiated in August 2023 by the second-ranking charge holder, HMT Holdings Inc., also known as Harbour Mortgage Corp. Their application was pertaining to a loan agreement reached with iFortune Homes in May 2022 for the principal amount of $6,000,000, which iFortune defaulted on in July 2023.
Named as respondents in HMT Holdings' application were also Vangood Group Holdings Inc., 1013676 BC Ltd., 1013667 BC Ltd., 1085830 BC Ltd., 1119530 BC Ltd., and 1323521 BC Ltd., which HMT Holdings identified as the corporate guarantors of the loan. Additionally, individuals named Yan Jing Wang, Feng Luan, Miao Wang, Kai Yu, and Hua Di Guo were identified as personal guarantors and also listed as respondents.
HMT Holdings obtained their order nisi of foreclosure on February 29, 2024, which confirmed the outstanding debt at $7,195,580.65 and set the redemption date at March 1.
The Sale
After the redemption dates passed with iFortune Homes unable to redeem the mortgage, conduct of sale was first granted to the lower-ranking charge holder, HMT Holdings (as is common in foreclosures), and the 2465 W 41st Avenue property was listed for sale by Simon Lim, James Lang, and Jessica Hathaway of Colliers.
No buyer was found during the time they were allotted, but all parties agreed to give HMT Holdings additional time, after "it became clear that HMT's security would be at jeopardy." (One purchase offer was received, but the parties were unable to come to terms on a contract for purchase and sale.)
Despite the additional time, no buyer was found, and conduct of sale subsequently shifted to CMLS Financial in late-July. In such scenarios, lenders will often retain a different brokerage, but CMLS opted to stay with the Colliers team, given their existing work on the marketing the property and their experience.
A rendering of the Elm41 project planned for 2465 W 41st Avenue in Vancouver. / Colliers
By September 12, the Colliers team had received five offers and selected the offer made by Landa Global as the superior bid. The parties then entered into a sale agreement for the purchase price of $14,000,000. Later that month, Colliers and Landa Global agreed on a $35,000 break fee in the event the sale falls through for any reason, and Colliers agreed to provide a commission rebate in the same amount if the court ultimately approved an offer from another party at a purchase price of $14,035,000 or less.
The sale did not fall through, however, and the Supreme Court approved the sale to Landa Global — as Landa (2465 W41) Holdings Ltd. — for $14,000,000 on November 21. After an extension request, the transaction then completed last week on January 9.
The sale price was on par with the BC Assessment valuation of $14,143,000, which was dated to July 1, 2024 and was a decrease from the previous year's valuation of $16,747,000.
According to court documents, the amount owed as of November 21 was $14,987,981.72, with interest accruing at a daily rate of $3,800. As a result of this and the sale price, CMLS Financial suffered a shortfall and subsequent creditors were unable to make any recovery.
