After being placed under receivership nearly a year ago, the multi-phase Elevate condominium project in Kitchener has found a buyer. This brings hope to the project which saw construction paused and the developer facing financial difficulties.
The Elevate project at 1333 Weber Street E in Kitchener was being developed by Pamata Hospitality Inc. before it was placed under receivership in October 2023.A buyer has been found for the multi-phase Elevate condominium project in Kitchener , providing some hope for the project after construction was paused and the project was placed under receivership nearly a year ago.
For the site, the developer was planning a four-phase project consisting of four condo buildings between 12 and 15 storeys, with a total of 544 units. According to the court-appointed Receiver in their first report after the receivership order came into effect, the 177-unit first phase was approximately 80% complete, the second and third phases had begun work on the foundation, while the site of the fourth phase was still raw land.
A first mortgage for the principal amount of $82 million in favour of Genesis, CMLS, and Computershare.A third mortgage for the principal amount of $3.5 million in favour of COR.What remains owing, however, is closer to $85 million, with $67 million owing under the first mortgage, $23 million of which is owed to Genesis. Of Westmount's $50 million charge, around $17 million is owed as a result of deposits that have been released for construction.
The transaction is expected to close on or before October 30, if it is approved by the Ontario Superior Court on October 8 — a strong likelihood since the purchasing party includes one of the first mortgagees.According to the Receiver, all 177 units of Tower A, plus 325 units between Tower B and Tower C, had been pre-sold prior to the receivership. Only a portion of the pre-sale purchase agreements will be assumed by the new developers, however.
According to the Receiver, upon approval of the transaction on October 8, a process will be established that will allow buyers whose purchase agreements are terminated to submit a claim for the return of their deposits.what
Condominium Kitchener Development Receivership Sale
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