Deal of the Week #31 – $28.5M Mixed-Use Development Refinancing – Edmonton, AB
DEAL OF THE WEEK #31 – Cameron Stephens successfully syndicated and funded $28.5 million in refinancing for a mixed-use development in St. Albert, Alberta. This project consists of 108 rental apartment units situated above commercial retail space and involved:
- $26,205,000 First Mortgage Construction Loan
- $2,295,000 Second Mortgage Construction Loan
The financing was completed to meet a year-end 2024 funding deadline, ensuring construction could resume and the project could achieve lease-up to stabilized occupancy in 2025. This transaction represents a key partnership with a new client in one of Canada’s most resilient real estate markets.
THE CHALLENGE: The Borrower required higher leverage to resume construction, facilitate lease-up, and position the project for up to 95% LTC CMHC MLI Select term financing. However, changes to CMHC’s MLI Select program reduced leverage during construction to a maximum 75% LTC, and institutional conventional lenders were targeting even lower leverage.
THE SOLUTION: Flexible Financing with Higher Leverage
CSMC provided a customized solution by underwriting and syndicating the deal to institutional and private capital partners, led by, Brad Wise, SVP & Managing Director, Western Canada and Daniel Stewart, SVP Mortgage Origination.
The financing package included:
- 1st Mortgage Financing: Provided cost-effective debt for the majority of the project.
- 2nd Mortgage Financing: Topped up leverage to meet the Borrower’s funding requirements.
- Construction Resumption: Supported by adjustments to the design and construction budget.
WHY IT MATTERS:
- Strong Syndication Expertise in Western Canada: Cameron Stephens access to proprietary capital and relationships with institutional and private partners enabled a tailored loan structure that delivered higher leverage in a challenging market.
- In-depth CMHC Knowledge: Our expertise in CMHC underwriting requirements for takeout financing ensured that interim financing was structured with assurances of repayment upon stabilized occupancy.
- Innovative Problem-Solving: By taking the time to understand the Borrower’s precast steel and concrete construction program, Cameron Stephens successfully communicated the project’s value to lenders who were initially unfamiliar with the innovative approach.
Team Spotlight:
- Daniel Stewart, RI, SVP Mortgage Origination, Western Canada*
- Brad Wise, SVP & Managing Director, Western Canada*
- Miraan Mukhtar, Analyst, Underwriting & Portfolio Management
*Licensed Sub Mortgage Broker in Alberta and BC under Cameron Stephens Mortgage Capital Ltd.
