Click here to close now.




















Welcome!

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
With SaaS use rampant across organizations, how can IT departments track company data and maintain security? More and more departments are commissioning their own solutions and bypassing IT. A cloud environment is amorphous and powerful, allowing you to set up solutions for all of your user needs: document sharing and collaboration, mobile access, e-mail, even industry-specific applications. In his session at 16th Cloud Expo, Shawn Mills, President and a founder of Green House Data, discussed h...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
Puppet Labs has announced the next major update to its flagship product: Puppet Enterprise 2015.2. This release includes new features providing DevOps teams with clarity, simplicity and additional management capabilities, including an all-new user interface, an interactive graph for visualizing infrastructure code, a new unified agent and broader infrastructure support.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducte...
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
Providing the needed data for application development and testing is a huge headache for most organizations. The problems are often the same across companies - speed, quality, cost, and control. Provisioning data can take days or weeks, every time a refresh is required. Using dummy data leads to quality problems. Creating physical copies of large data sets and sending them to distributed teams of developers eats up expensive storage and bandwidth resources. And, all of these copies proliferating...
Malicious agents are moving faster than the speed of business. Even more worrisome, most companies are relying on legacy approaches to security that are no longer capable of meeting current threats. In the modern cloud, threat diversity is rapidly expanding, necessitating more sophisticated security protocols than those used in the past or in desktop environments. Yet companies are falling for cloud security myths that were truths at one time but have evolved out of existence.
Digital Transformation is the ultimate goal of cloud computing and related initiatives. The phrase is certainly not a precise one, and as subject to hand-waving and distortion as any high-falutin' terminology in the world of information technology. Yet it is an excellent choice of words to describe what enterprise IT—and by extension, organizations in general—should be working to achieve. Digital Transformation means: handling all the data types being found and created in the organizat...