TORONTO, ONTARIO--(Marketwired - Jan 28, 2015) - The term highest and best use in planning refers to maximizing the purpose of a property to best enliven and enrich a neighbourhood. Investors in a Fortress Real Capital syndicate mortgage in Oakville are finding that the highest best use of their money is enriching their bottom line.
Fortress Real Developments COO Vince Petrozza, also a mortgage broker, announced today the return of investor capital on a complete exit of a project located adjacent to the Trafalgar GO Train Station. "We first underwrote and committed to this site in 2012, and were intrigued by its proximity to a major transit hub and the clear need to improve on the current land use. The development team achieved Site Plan Approval for the project in 16 months, which allowed for investors who joined the syndicate later, to have their principal repaid in less than two years. We want to thank the team at Apache Developments for their excellent work on this site; we have seen other companies come into Oakville and struggle to get approvals or traction of any kind, so we are quite pleased with the results."
Investors came into the project in its early stages and saw it go through the approvals process. For the length of their investment term, they continued to receive monitored updates, which now concludes with a full exit of their principal that earned them an average return of 8.24% per annum.
The raise for this project was led by mortgage agents who have now formed two of the top brokerages that offer syndicate mortgages for real estate development purposes. Tony Amendola, CEO of FMP Mortgage Investments, sees an emerging trend for consumers looking to add real estate as an asset class to their portfolio. "I've been involved in the real estate sector for years; from being an agent to working on land developments to providing mortgages", said Amendola from his Etobicoke offices. "All I hear from clients is how they are sick of stock market uncertainty and want security and cash flow. The short terms on select Fortress deals of around 3 to 5 years offers them exactly what they need."
Zafar Khawaja, CEO of FDS Broker Services, regularly takes clients to sites where they can see their money at work. "I remember bringing potential investors to visit the property when I was performing my own due diligence. To see the tremendous value created on the site by their investment and the returns they have generated, that is the best part of my job. I love making money for our customers."
Fortress Real Developments, the development participant in this project, includes this exit as another recent milestone in their portfolio. Executive Vice-President Frank Margani projects another 7 to 10 exits for investors this year. "In December, we raised our half billionth dollar from the retail market, which is an incredible achievement. Earlier this month the value of our land portfolio crossed the $1 billion dollar threshold and it is projected that Q1 of this year will show outflow to investors of over $50 million. It is truly an exciting time at Fortress."
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
