Deal of the Week #33 – $76M Serviced Lot & Revolving Construction – Maple, ON
DEAL OF THE WEEK #33 – Cameron Stephens Mortgage Capital (CSMC) is thrilled to announce a significant new financing commitment for a $56 million serviced lot loan and a $20 million capped revolving construction loan, to support the development of 90 single-family homes in Maple, ON. The loan is one of many transactions CSMC has completed over several years working with this valued borrower.
THE CHALLENGE: Navigating a Market with Low Buyer Demand
CSMC has had a loan on this property since 2019. The original transaction was completed to provide a $25,000,000 land loan, which included $5,000,000 in pre-servicing financing to fund earthworks. In 2022, CSMC refinanced the loan and provided a $55,700,000 servicing loan on a spec basis (without the requirement of presales) to prepare the site for vertical construction.
Recently the Borrower approached CSMC to advance construction financing to complete the development, however, the key to the transaction was to provide flexible financing terms to allow the Borrower to access the loan proceeds without too many hurdles, in today’s market.
THE SOLUTION: Structured a Flexible $76M Financing Package with Minimal Presale Requirements.
The loan was structured in two facilities. The first facility is a $56,350,000 serviced lot loan designed to refinance the existing debt and extend the term. The facility requires a presale test of only 20 units (22% of the total units). The second facility is a $20,000,000 capped revolving construction loan designed to fund the hard construction costs of all presold homes, allowing the Borrower to build 30 units at one time. Furthermore, the interest costs were deferred, allowing the Borrower to draw on the financing with only $1,200,000 of cash equity invested in the project. The transaction was expertly led by Ian Wilson, VP of Origination, and Marko Sijakovic, VP of Syndication.
✅ Flexible Financing: With end-unit sales slowing, CSMC’s structured loan with minimal presale requirements helped unlock funding and moved the project forward.
✅ Low Cash Equity: CSMC’s commitment requires just $1.2M upfront, with deferred interest to support the Borrower’s cash flow.
- Ian Wilson, VP Origination, Mortgage Agent Level 2
- Marko Sijakovic, CFA, VP Syndication, Mortgage Agent Level 1
Ontario Mortgage Brokerage License # 10769 and Administrator License #11807
