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
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
Get deep visibility into the performance of your databases and expert advice for performance optimization and tuning. You can't get application performance without database performance. Give everyone on the team a comprehensive view of how every aspect of the system affects performance across SQL database operations, host server and OS, virtualization resources and storage I/O. Quickly find bottlenecks and troubleshoot complex problems.
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices 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 business opportunity. Submit your speaking proposal ...
"Coalfire is a cyber-risk, security and compliance assessment and advisory services firm. We do a lot of work with the cloud service provider community," explained Ryan McGowan, Vice President, Sales (West) at Coalfire Systems, Inc., in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service. In his session at 19th Cloud Exp...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, sha...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
CloudJumper, a Workspace as a Service (WaaS) platform innovator for agile business IT, has been recognized with the Customer Value Leadership Award for its nWorkSpace platform by Frost & Sullivan. The company was also featured in a new report(1) by the industry research firm titled, “Desktop-as-a-Service Buyer’s Guide, 2016,” which provides a comprehensive comparison of DaaS providers, including CloudJumper, Amazon, VMware, and Microsoft.
Businesses and business units of all sizes can benefit from cloud computing, but many don't want the cost, performance and security concerns of public cloud nor the complexity of building their own private clouds. Today, some cloud vendors are using artificial intelligence (AI) to simplify cloud deployment and management. In his session at 20th Cloud Expo, Ajay Gulati, Co-founder and CEO of ZeroStack, will discuss how AI can simplify cloud operations. He will cover the following topics: why clou...
"Dice has been around for the last 20 years. We have been helping tech professionals find new jobs and career opportunities," explained Manish Dixit, VP of Product and Engineering at Dice, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"Qosmos has launched L7Viewer, a network traffic analysis tool, so it analyzes all the traffic between the virtual machine and the data center and the virtual machine and the external world," stated Sebastien Synold, Product Line Manager at Qosmos, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.