Deal of the Week #28 – $42M Land & Servicing Loan – South Surrey, BC
Cameron Stephens Mortgage Capital (CSMC) is excited to announce a significant $42 million land and servicing loan commitment for a 25.7-acre multi-phase townhome development in South Surrey, BC. This financing marks a successful new relationship with a Borrower aiming to deliver nearly 500 family-oriented townhome units in a fast-growing market.
The Challenge: Securing Financing in a Tough Market
The Borrower had strategically acquired and held the assembled lands since 2016, benefiting from substantial value appreciation through market dynamics and a zoning change from industrial to residential townhome use. Despite the impressive gains and prudent financial management, advancing the project required a substantial equity take-out and recognition of the property’s appreciated value — a tough ask in today’s capital-constrained environment.
The Cameron Stephens Advantage: Unique Lending Model and Market Insight
Cameron Stephens stepped in with a tailored solution, leveraging our unique syndication model to assemble a consortium of institutional partners. This approach provided a competitive financing package that no single senior lender could match. A special shout-out to Kyle Yatabe, VP of Syndication, for his outstanding execution in assembling the syndicate and securing a competitive financing package. Our deep market intelligence and nuanced understanding of current conditions allowed us to acknowledge the full scope of the property’s value appreciation, including the borrower’s successful entitlement efforts.
The Solution: Comprehensive Financing for Growth
We structured a customized financing package that met the Borrower’s needs:
- Refinanced the existing land loan to provide immediate relief.
- Enabled a significant equity take-out, unlocking capital for the Borrower.
- Included a draw facility to cover servicing and municipal fees, facilitating a smooth transition to the construction phase of the project.
This deal showcases Cameron Stephens’ ability to navigate complex market conditions, craft innovative solutions, and support borrowers in advancing large-scale projects even in a challenging lending environment.
Meet the Team Behind the Deal:
- Jonah Muzyka, Director of Mortgage Origination, Western Canada*
- Brad Wise, SVP and Managing Director, Western Canada*
- Kyle Yatabe, VP of Syndication
- Miraan Mukhtar, Analyst, Underwriting and Portfolio Management
*Licensed Sub Mortgage Brokers under Cameron Stephens Mortgage Capital Ltd.
