Click here to close now.

SYS-CON MEDIA Authors: Liz McMillan, Pat Romanski, Elizabeth White, Wade Williamson, Lori MacVittie

News Feed Item

Fortress Real Capital Investors Exit Pickering Project With 22% Returns

TORONTO, ONTARIO -- (Marketwired) -- 05/15/14 -- Retail investors of the Fortress Real Capital syndicate mortgage product successfully exited a mixed use development project in Pickering yesterday.

The mixed use project on 13 acres located at Brock Road and Kingston Road in Pickering is planned for 30 townhouses, 12 live work units and a three storey commercial building. The site's prime location, access to major transit and highway and major community amenities including a local mosque make it a high demand project.

"All of the units are spoken for and we have a growing waiting list. This project will take a plot of unused land and turn it into something the entire community will enjoy" said Fortress CEO Jawad Rathore.

The project was originally led by a small local builder who had completed similar sized projects throughout the 905. When pre-development took longer than anticipated, they started relying more on the Fortress development team to assist in the process.

"Our team has managed this site all the way through to the doorstep of site plan approval. In doing so, we have dramatically increased the value of the property and made it very attractive to lenders" remarked Frank Margani, EVP at Fortress Real Developments and a licensed mortgage agent with Centro Mortgage Inc. "By creating this extra value, syndicate mortgage investors didn't have to wait for the project to be built in order to exit... enough value was created to pay them out now."

Investors were rewarded with 22% total returns in only 33 months. Margani reflected on the creation of value from the work done by the Fortress team. "It's pretty remarkable to generate and realize those types of returns in such a short period of time. Several clients have expressed how pleased they have been with the performance of their investments in Fortress projects in comparison to other products in their portfolio that aren't generating the same yield or liquidity as quickly."

When the Fortress Stakeholder Management stepped in to manage the day to day operations of the project, they were able to rapidly right the ship and start moving forward. Led by Fortress Director of Stakeholder Management Nick Circosta, an industry veteran with over 40 years of development and construction experience, plans were revised and the reins were taken over to obtain the final site plan approval and related permits.

"The real nadir was when they had used the initial budget of monies provided by investors but hadn't yet achieved all of their development milestones", explained Vince Petrozza, Fortress COO and a licensed mortgage broker. "We run very tight costing allowances and when we saw that more capital was needed, we chose to not go to investors for more capital but rather to fund the extra monies needed ourselves."

"I can say without reservation that without the dedicated efforts of Nick and his team that this project would not be worth anywhere near as much as it is now. That's what we do, we engineer and create value for investors in our projects," remarked Petrozza. "At the end of day, it's all about putting the investor first. All projects have their challenges and investors want to see that you have the experience, confidence and financial resources to step up and take care of them."

"In the case of this project, we were ready to exit the investors in February but faced resistance from the original borrower who wanted to try and keep the project for themselves. We made it very clear to them that protecting the investors was paramount and we weren't interested in anything that further delayed their exit," stated Petrozza. "Things started moving fast once we involved our corporate counsel to advocate for the investors. I guess that's the benefit of having one of the world's biggest law firms on your side."

Fortress congratulates all the investors who exited from this project with 22% returns and is now focused on generating a vibrant mixed-use community in Pickering. The plan is to move ahead with the construction and completion of the project. Building contracts are being finalized with a well-known builder from York region and will be announced in a few weeks followed by construction to begin this fall.

About the Companies

Fortress Real Developments Inc. - Fortress Real Developments Inc. is a Canadian real estate development company that seeks out and analyzes investment opportunities in major Canadian markets. The company is focused on quality projects with recognizable alpha in residential low-rise, high-rise, commercial and industrial market segments. For more information visit: http://fortressrealdevelopments.com.

Centro Mortgage Inc. - Centro Mortgage Inc., established in 2007, is a premier mortgage brokerage licenced in Ontario, Nova Scotia, Alberta & Saskatchewan. Centro's closes all Fortress Real Capital transactions, an RSP eligible syndicate mortgage product that allows a consumer to invest directly into the proven market of Canadian real estate by becoming a mortgage lender. For more information visit: http://fortressrealcapital.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that robomq.io will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. robomq.io is an interoperable and composable platform that connects any device to any application. It helps systems integrators and the solution providers build new and innovative products and service for industries requiring monitoring or intelligence from devices and sensors.
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding bu...
Today, IT is not just a cost center. IT is an enabler and driver of business. With the emergence of the hybrid cloud paradigm, IT now has increasingly more capabilities to create new strategic opportunities for a business. Hybrid cloud allows an organization to utilize multi-tenant public clouds, dedicated private clouds, bare metal hosting, and the associated support and services for the right use cases through an on-demand, XaaS model. This model of IT creates tremendous opportunities for busi...
Business as usual for IT is evolving into a “Make or Buy” decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud busi...
SYS-CON Events announced today that Litmus Automation will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Litmus Automation’s vision is to provide a solution for companies that are in a rush to embrace the disruptive Internet of Things technology and leverage it for real business challenges. Litmus Automation simplifies the complexity of connected devices applications with Loop, a secure and scalable clou...
Businesses are looking to empower employees and departments to do more, go faster, and streamline their processes. For all workers – but mobile workers especially – utilizing the cloud to reconnect documents and improve processes without destructing existing workflows can have a dramatic impact on productivity. In his session at 16th Cloud Expo, Mark Grilli, vice president of Acrobat Solutions marketing at Adobe Systems Incorporated, will outline new ways that the cloud is changing the way peo...
With the arrival of the Big Data revolution, a data professional is expected to master a broad spectrum of complex domains including data processing, mathematics, programming languages, machine learning techniques, and business knowledge. While this mastery is undoubtedly important, this narrow focus on tool usage has divorced many from the imagination required to solve real-world problems. As the demand for analysis increases, the data science community must transform from tool experts to "data...
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, will provide some practical insights on what, how and why when implementing "software-defined" in the dat...
While not quite mainstream yet, WebRTC is starting to gain ground with Carriers, Enterprises and Independent Software Vendors (ISV’s) alike. WebRTC makes it easy for developers to add audio and video communications into their applications by using Web browsers as their platform. But like any market, every customer engagement has unique requirements, as well as constraints. And of course, one size does not fit all. In her session at WebRTC Summit, Dr. Natasha Tamaskar, Vice President, Head of C...
SYS-CON Events announced today that Emcien will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Emcien’s vision is to let anyone use data to know the future. Emcien has built an automated, predictive analysis product that improves the lives of real people. Emcien allows people to automate their data analysis so they can build a better future.
SYS-CON Events announced today that Solgenia will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Solgenia is the global market leader in Cloud Collaboration and Cloud Infrastructure software solutions. Designed to “Bridge the Gap” between Personal and Professional S...
WSM International has launched a DevOps services division that offers assessment, consulting and implementation to large enterprises and organizations with complex infrastructures. The concept of DevOps is to blend information technology (IT) software development with operations to optimize the computing infrastructure according to the specific needs of the organization. According to a recent press release from Gartner, "By 2016, DevOps will evolve from a niche strategy employed by large cloud ...
SYS-CON Events announced today that QTS Realty Trust, one of the nation’s largest and fastest-growing providers of data center facilities and cloud services and a leader in security and compliance, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. QTS Realty Trust, Inc. (NYSE: QTS) is a leading national provider of data center solutions and fully managed services, and a leader in security and compliance...
SYS-CON Events announced today that WSM International (WSM), the world’s leading cloud and server migration services provider, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. WSM is a solutions integrator with a core focus on cloud and server migration, transformation and DevOps services.
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY., and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides private all-in-one social intranets allowing workers to securely collaborate from anywhere in the world and from any device. Social, mobile, and eas...