Deal of the Week #26 – $65.1M Construction Loan – Bradford, ON
DEAL OF THE WEEK #26 – Cameron Stephens Mortgage Capital (CSMC) is proud to announce the approval and commitment of a $65.1 million first mortgage cost-to-complete construction loan for four industrial condo buildings in Bradford, Ontario. This project represents the final 14.2-acre parcel of a prominent business park buildout, totalling approximately 255,000 square feet of gross floor area.
Our strong, long-standing relationship with the sponsor, combined with flexible underwriting and syndication capabilities, enabled us to deliver financing in alignment with the borrower’s business plan. Key elements include a reduced deposit threshold for bulk sales, holding back an entire building (~54,000 square feet) from the pre-sale test, and a blend of non-arms-length sales, arms-length sales, and pre-leases. Amid evolving market conditions, CSMC’s creative structuring demonstrates our commitment to supporting our clients and this asset class.
This transaction required precision and thorough due diligence, led by Ian Wilson, Vice President, Mortgage Origination, and Ajay Gunware,CFA, Senior Analyst, Underwriting and Portfolio Management.
WHY THIS DEAL MATTERS:
- Growing Demand in Industrial Real Estate: The Canadian industrial real estate sector is one of the fastest growing, driven by e-commerce expansion, supply chain needs, and rising demand for flexible, smaller spaces. Light industrial condominiums are emerging as a popular option, allowing businesses to own rather than lease in high-demand markets like Toronto, Vancouver, and Calgary, where vacancy rates are as low as 1.0%.
- Comprehensive Financing Solutions: CSMC’s repeat business with this client across various asset classes—including low-, mid-, and high-rise residential as well as industrial—reinforces our position as a go-to financing resource.
- Flexibility in Complex Financing: In today’s challenging credit market, CSMC’s capacity to structure multiple exit strategies within large, complex pro formas provides borrowers the flexibility to execute their vision, showcasing our strength in delivering bespoke solutions.
This deal highlights our financial expertise, commitment to building long-term client relationships, and adaptability to changing market dynamics. Join us in celebrating this milestone as we continue to set industry benchmarks in non-bank lending.
- Ian Wilson, VP Mortgage Origination, Agent Level 2
- Marko Sijakovic, CFA, VP, Syndication
- Ajay Gunware,CFA, Senior Analyst, Underwriting and Portfolio Management
Ontario Brokerage License # 10769
