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
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, presented an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He then expounded on the industry issues he frequently came up against as an analyst, and ...
SYS-CON Events announced today that App2Cloud will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. App2Cloud is an online Platform, specializing in migrating legacy applications to any Cloud Providers (AWS, Azure, Google Cloud).
In his session at @DevOpsSummit at 20th Cloud Expo, Kelly Looney, director of DevOps consulting for Skytap, showed how an incremental approach to introducing containers into complex, distributed applications results in modernization with less risk and more reward. He also shared the story of how Skytap used Docker to get out of the business of managing infrastructure, and into the business of delivering innovation and business value. Attendees learned how up-front planning allows for a clean sep...
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across supply chain networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost and time for product recall as well as advance trade. Are you curious about Blockchain and how it can provide you with new opportunities for innovation and growth? In her session at 20th Cloud Exp...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. Jack Norris reviews best practices to show how companies develop, deploy, and dynamically update these applications and how this data-first...
Intelligent Automation is now one of the key business imperatives for CIOs and CISOs impacting all areas of business today. In his session at 21st Cloud Expo, Brian Boeggeman, VP Alliances & Partnerships at Ayehu, will talk about how business value is created and delivered through intelligent automation to today’s enterprises. The open ecosystem platform approach toward Intelligent Automation that Ayehu delivers to the market is core to enabling the creation of the self-driving enterprise.
"At the keynote this morning we spoke about the value proposition of Nutanix, of having a DevOps culture and a mindset, and the business outcomes of achieving agility and scale, which everybody here is trying to accomplish," noted Mark Lavi, DevOps Solution Architect at Nutanix, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, shared examples from a wide range of industries – including en...
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
"We're here to tell the world about our cloud-scale infrastructure that we have at Juniper combined with the world-class security that we put into the cloud," explained Lisa Guess, VP of Systems Engineering at Juniper Networks, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Enterprise architects are increasingly adopting multi-cloud strategies as they seek to utilize existing data center assets, leverage the advantages of cloud computing and avoid cloud vendor lock-in. This requires a globally aware traffic management strategy that can monitor infrastructure health across data centers and end-user experience globally, while responding to control changes and system specification at the speed of today’s DevOps teams. In his session at 20th Cloud Expo, Josh Gray, Chie...
Consumers increasingly expect their electronic "things" to be connected to smart phones, tablets and the Internet. When that thing happens to be a medical device, the risks and benefits of connectivity must be carefully weighed. Once the decision is made that connecting the device is beneficial, medical device manufacturers must design their products to maintain patient safety and prevent compromised personal health information in the face of cybersecurity threats. In his session at @ThingsExpo...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...