Construction of four 1,280 square foot semi-detached homes in the up-and-coming East York area of Toronto. The borrower acquired the property in August 2010. At that time, the site contained a single-storey building that was used as an automotive repair garage and zoned for commercial use. The site required some environmental remediation work, which was completed to bring the site up to current residential standards. The builder was able to have the zoning changed by the City of Toronto – via the Committee of Adjustments – to allow for the property to be severed into four residential building lots.
Acquisition and construction financing
Foremost provided a facility of $1,790,000. The first advance allowed the borrower to pay out the original land loan provided by Foremost and help cover project costs incurred to date (i.e. environmental, planning, city fees and site remediation work), as well as to provide some additional working capital. Foremost provided a facility of 70% LTV of the estimated value upon completion, which covered 100% of the hard construction costs, most soft costs plus an interest reserve.