Deal of the Week #27 – $13.3M Land Loan – Peel Region, ON
Cameron Stephens Mortgage Capital (CSMC) is pleased to announce the recent commitment of a $13.3 million, non-syndicated 2nd mortgage land loan in Peel Region. This financing will support the redevelopment of a strategically located site with partial zoning approvals in place, earmarked for future residential use. The site, spanning approximately 31 net developable acres, offers significant potential for a mix of residential housing, reflecting the high demand in Peel’s growing market.
CSMC’s loan commitment stands in a 2nd mortgage position behind a substantial vendor-take-back (VTB) 1st mortgage, leveraging our deep understanding of land values and risk-adjusted pricing to achieve a total loan-to-value of 69%. CSMC’s expertise in structuring complex financing solutions—especially in 2nd position loans with substantial senior debt—demonstrates our willingness to support high-quality developers and capitalize on strategic opportunities in the Peel Region market.
The deal was expertly structured by Kevin Marthinsen, Sr Director, Mortgage Origination and Nathan Aumais, Senior Analyst, Mortgage Investments.
WHY THIS DEAL MATTERS:
Strategic Second Position in a Well-Structured Capital Stack
CSMC’s 2nd mortgage complements a carefully structured VTB 1st mortgage, creating an optimal capital stack for this project. While some lenders may be selective about 2nd position financing, CSMC’s expertise in land valuation and rigorous underwriting ensure that this 69% LTV remains well within our lending standards. This approach reflects our confidence in both the property’s value and the developer’s vision for the site.
Non-Syndicated Capital with Competitive Mezzanine Pricing
As a non-syndicated loan, this deal allows CSMC to offer more competitive mezzanine pricing while maintaining agility and a faster turnaround for the client.
Deep Understanding of Land Values
CSMC’s expertise in land values in Peel Region is a competitive advantage, enabling our team to navigate unique site challenges while confidently supporting a well-structured loan.
Client Profile
The borrower is an experienced, well-established builder/developer with a proven track record, aligning well with CSMC’s portfolio of successful client partnerships.
This 2nd mortgage financing further establishes CSMC as a versatile and reliable lender, willing to support high-quality developers with unique and sophisticated loan structures. This transaction highlights our ability to craft flexible financing solutions, setting us apart in the land lending market.
- Kevin Marthinsen, Senior Director Mortgage Origination, Agent Level 2
- Nathan Aumais, Senior Analyst, Mortgage Investments, Agent Level 1
Ontario Brokerage License # 10769
