The Vancouver-based real estate developer known as South Street Development Group, that's also behind the Richmond Atmosphere project under creditor protection, is facing another insolvency, this time on a project in Vancouver, according to filings in the Supreme Court of British Columbia.
The subject site of this project is 851 W 28th Avenue, located just south of Braemar Park and directly across the street from the BC Children's Hospital.
The site was formerly three single-family lots — 847, 857, and 867 W 28th Avenue — that have now been consolidated into a single parcel. For the site, South Street was planning a 20-unit townhome community named Oak Keys, according to a project website that was taken offline recently, and a rezoning application was submitted in 2019, according to the City of Vancouver.
The property is beneficially owned by South Street under Oak and 28th Holdings Ltd.
The Foreclosure
Oak and 28th Holdings Ltd. became the subject of foreclosure proceedings that were initiated on January 31, 2024 by Lloyd Investments Ltd. pertaining to a mortgage agreement the two sides entered into in March 2023. The mortgage was for the principal amount of $9,000,000, with interest accruing at 13.0% per annum.
Also listed as respondents in the foreclosure proceedings are South Street (Oak28) Limited Partnership, South Street (Oak28) GP Ltd., Brent Taylor Hanson, Samuel David Hanson, and Anabata Development Inc. South Street's corporate website identifies Sam Hanson as the Founder of the company.
A rendering of the Oak Keys project planned for 851 W 28th Avenue in Vancouver. / MGBA, South Street Development Group
According to the lender, the mortgage has been in default since August 2023 and they then issued a demand for payment on November 10, 2023 before initiating the foreclosure proceedings.
On August 15, 2024, the Supreme Court granted the order nisi of foreclosure that confirmed the outstanding amount at $10,426,096.44, with interest accruing at 13.0% per annum. The court order also set the redemption date — the day by which the debtor can pay the outstanding amount to halt the foreclosure — at January 18, 2025.
The Listing
January 18 came and went and South Street was unable to redeem the mortgage, and the lenders were granted conduct of sale to sell the property in order to recover the debt.
As of January 29, the amount owed was $11,148,054.45 and the property was listed for sale last month by Colliers with an asking price of $11,500,000.
- Address: 851 W 28th Avenue, Vancouver
- Lot Size: 18,750 sq. ft
- Zoning: RM-8A (Multiple Dwelling)
- Price: $11,500,000
- Listed By: Colliers (Hart Buck, Matt Saunders, David Taylor, Morgan Iannone, and Jennifer Darling)
The 851 W 28th Avenue site in Vancouver and its surrounding context. / Colliers
Colliers notes that the site is located in a high-demand location with close proximity to various amenities, while also offering developers the opportunity to capitalize on the strong demand for townhouses in the area.
