Vancouver-based real estate developer Landmark Premiere Properties is the subject of a second insolvency proceeding that was initiated earlier this month, according to filings in the Supreme Court of British Columbia obtained by STOREYS.
The subject properties are 745 W 41st Avenue, 715 W 41st Avenue, and 5693 Heather Street in Vancouver. The parcels are three of the five parcels that make up the block between Baillie Street and Heather Street along W 41st Avenue, right across the street from Oakridge Park.
Notably, the three parcels are separated by two other parcels — 733 and 725 W 41st Avenue — that are not subject to the insolvency proceeding and it is unclear if the two remainder parcels are owned by Landmark Premiere Properties.
Each of the parcels are currently occupied by single-family homes and BC Assessment values the three parcels at $3,516,000, $3,498,000, and $3,568,000, for a total valuation of $10,582,000. The three parcels are beneficially owned by Landmark Premiere Properties under Oakridge Heather Baillie Holdings Ltd.
The Foreclosure
The foreclosure proceeding was initiated on April 11 by Lanyard Investments (as general partner of LFC Heather21 Limited Partnership) and City Mortgage Investment Corporation pertaining to a first-ranking mortgage agreement the two sides entered into in May 2021 for the principal amount of $14,917,500.
The guarantors of the loan was Landmark Premiere Properties Ltd. and Yuxia Sun, also known as Helen Chan Sun, the CEO of Landmark Premiere Properties.
The maturity date was later extended to May 1, 2025, but the borrowers are currently in default of the loan, although the exact reason was not detailed in court documents. According to the lenders, they made a demand for payment on March 7, but the borrowers have still been unable to pay the outstanding amount, prompting the lenders to initiate the proceedings.
According to the lenders, they are owed $14,903,636.98 as of April 8, with interest accruing at a rate of 14.25% per annum / $5,689.94 per day.
The lenders also note that Landmark leased the three properties to a company called Axiom Property Management in October 2021. (No relation to Axiom Builders.) Other charges registered on the land title include a second mortgage held by Adwell Financial Services Inc., 1045632 BC Ltd., 1211212 BC Ltd., and an individual named Miao Zhang.
The foreclosure application has yet to be approved by the court, but the lenders are seeking approval for conduct of sale so they can sell the properties in order to recover what they are owed.
Landmark Premiere Properties
The foreclosure against 745 W 41st Avenue, 715 W 41st Avenue, and 5693 Heather Street comes just a few months after Landmark Premiere Properties' Shawn Oaks project was placed under receivership, as first reported by STOREYS.
That property is a 3.2-acre site located at 5505-5585 Oak Street and is currently occupied by 72 townhouses that the company acquired between 2016 and 2021. A 31-storey tower, a 33-storey tower, and a six-storey building with a total of 600 units has been proposed, but the City of Vancouver has not approved the project.
At the time the project was placed under receivership, the outstanding debt was just under $100 million and the 5505-5585 Oak Street was listed for sale by Simon Lim, James Lang, Jessica Hathaway, Bill Randall, Hart Buck, and Jennifer Darling of Colliers earlier this month without an asking price.
A rendering of the Shawn Oaks proposal by Landmark Premiere Properties. / Acton Ostry Architects
In January, Landmark Premiere Properties said in a statement provided to STOREYS that the trouble was "an isolated issue" and that the insolvency occurred because two partners on the project that together held a 70% stake in the project stopped making shareholder payments, forcing Landmark to carry the financial burden.
In addition to the two aforementioned insolvencies, Landmark has also recently been trying to sell a third project. At 540 W 65th Avenue and 8120-8168 Lord Street in Vancouver, Landmark received rezoning approval in December 2023 for two six-storey rental buildings with a total of 146 units. However, the property was listed for sale last month by Cynthia Jagger and Anthony Liang of CBRE. Those parcels are beneficially owned by Landmark under Lord Street Holdings Ltd.
STOREYS has reached out to Landmark Premiere Properties for comment, but has not received a response as of publishing.
