Real estate insolvencies have, unfortunately, become relatively commonplace over the past few years, but few have involved Canada’s biggest banks, making a recent case a rare occurrence.
The project is a 27-storey mixed-use condo project called the Burlington Waterfront, which was being developed by Toronto-based developer Core Development Group through Core FSC Lakeshore Limited Partnership and Core FSC Lakeshore GP Inc.
The site of the project is a land assembly consisting of 2093, 2097, and 2101 Old Lakeshore Road, plus 2096 and 2100 Lakeshore Road, located about two blocks east of the Waterfront Hotel Burlington, and steps away from the waters of Lake Ontario.
The parcels are currently occupied by five buildings and a parking lot; only one of the buildings is home to a tenant, while the others are unoccupied and have been boarded up.
According to City of Burlington records, the Ontario Land Tribunal approved the project in May 2022. The project will include 310 residential units with commercial space on the ground level, a five-level underground parkade, and privately-owned public space along the western property line.
Behind The Scenes
Toronto-Dominion Bank (TD Bank) initiated the receivership proceedings with an application dated April 29 pertaining to a first-ranking land loan the two sides entered into in February 2023 for the principal amount of $18,000,000.
According to TD Bank, the loan was repayable on demand and their agreement allowed TD to “accelerate the payment of the obligations” in the event of a default or if TD did not approve development financing by February 28, 2026.
The loan was guaranteed by Core Development Group, but also Forgestone Capital through Forgestone Capital Fund No. 2 LP, FSC Old Lake GP Inc., and FSC Old Lake Limited Partnership. TD says that Core Development guaranteed up to 25% of total outstanding liabilities while Forgestone guaranteed 75%.
The Burlington Waterfront project set for 2093, 2097, and 2101 Old Lakeshore Road plus 2096 and 2100 Lakeshore Road in Burlington. (Studio JCI, Core Development Group)
According to TD, as the development financing deadline neared, the three parties began discussions in December 2025 to address the obligations and the possible sale of the property. Those discussions continued into February, and led to TD discovering that a second mortgage had been registered against the property by Forum Subterra General Partner Inc. for $249,390.
Subterra Renewables is a developer and operator of geothermal heating and cooling systems for developers that has operated in partnership with Forum Asset Management since 2019 under Forum Subterra Limited Partnership. Forum then acquired Subterra earlier this year.
The Receivership
TD says that the registration of the second mortgage without their consent represented a default. The borrowers also failed to make a monthly interest payment on February 9 in the amount of $67,924.23, which represented another default. Thus, TD issued a formal demand for payment on March 4, and said in its receivership application that it was owed $18,240,367.62 as of April 28, with interest continuing to accrue.
“In the circumstances set out above, I believe that it is just and equitable that a receiver be appointed by the Court,” said Dave Gemin, a Director of TD Bank’s National Real Estate Group in an affidavit dated April 28.”
“A receiver is necessary for the protection and realization of the Real Property and the interests of TD and all stakeholders,” added Gemin. “TD believes that the appointment of a receiver would enhance the prospect of recovery by TD and protect all stakeholders.”
TD’s receivership application was granted by the Ontario Superior Court of Justice on May 19, with the judge presiding over the case noting that Forgestone was supportive of the receivership.
The property is now expected to go through a court-ordered sales process.
