Deerhurst Resort:

ROMSPEN
Acquisition Financing

Loan Amount:
Loan Type:
Property Type:
Site Size:
Improvements:
Location:

$21M First Mortgage

$19M Term Loan with further $2M Reno Facility
Golf Resort
760 Acres
2 Golf Courses, 400-room resort, 45,000 sq ft of
meeting and convention space, spa facilities
Huntsville, ON

Deerhurst Resort:
ROMSPEN
Acquisition Financing
At first glance
Loan-to-purchase price > 75%
Golf industry strongly affected by 2008 financial crisis and lingering recession
565 acres of excess land
Solid investment after thorough analysis
Prior ownership invested over $60M in CapEx since 1998 purchase
Future development potential of excess land
Projected Year-1 NOI: $2.9M ; 2010 NOI: $2.8M ; 2009 NOI: $0.4M
Cash flows from disposition of Sports Villas & Estates swept to pay down loan
LTV after Year 1: 65%; LTV after Year 2: 45%
Strong Borrowers with a diverse portfolio of real estate holdings and vast
experience in the Hotel & Resort Industry
Repeat client
One Year Later
Successful sales events exceeded proforma expectations
Substantial repayments made in Year 1 from unit sales
Loan paid-off by institutional financing

MultiSport Centre:
ROMSPEN
Construction Financing

Loan Amount:
Loan Type:
Property Type:
Site Size:
Improvements:
Location:

$20 Million First Mortgage

Construction
Private Athletic and Sport Rehab Centre
5.2 acres
5-storey, 152,000SF athletic facility with
medical offices, retail, and accommodations
for athletes (60-rooms, 120-beds)
Burnaby, BC

MultiSport Centre:
ROMSPEN
Construction Financing
At first glance
Property has restricted designated use, ie. Must be sports-related
Balance of construction to be co-funded on a cost-to-complete
Borrower required an additional $18M equity injection to complete construction
budget
Construction had commenced and stalled for 18 months prior to our review
Solid investment after thorough analysis
Well-located in a sports-node of Burnaby, opportunity for synergies
$22M of equity invested at time of funding
LTC: 33% ; Internal LTV: 50%
Borrower has extensive capital markets experience and demonstrated ability to
raise equity from corporate donors, sponsors, and high-net-worth private
investors
One year later
Additional $18M raised to satisfy full project capitalization
Construction nearing completion
Lease-ups moving forward as occupancy date approaches
Perfect loan performance in accordance with budget

Recent Lending Case Studies

Real Capital 2013
Thom. Henderson
Director of Commercial Mortgages

www.communitytrust.ca

Transaction 1

Loan Amount: $5,100,000

Property Type: Multi-Family
Size: 67 Units
Location: Toronto

Transaction 1
Challenges:

vacant upon acquisition to facilitate renovation program

subject to ground lease

Solutions:

loan to purchase at 60%, with term on ground lease

very strong location, tight rental market
short renovation program with committed $
strong sponsorship and proven results on previous deals

Transaction 2

Loan Amount: $2,500,000

Property Type: Industrial
Size: 27,137 sq.ft.
Location: Brampton

Transaction 2
Challenges:

condo titled industrial, representing 13 of 36 units

25% owner occupied

Solutions:

comfortable on value and lease rates

developed by borrower in 05 with units held for rental
favourable zoning, low vacancy, operating history
strong corporate and personal covenant

Transaction 3

Loan Amount: $15,750,000

Property Type: Student Housing (Construction)
Size: 64 units with 340 bedrooms
Location: Waterloo

Transaction 3
Challenges:
student housing as a viable sector & local market dynamics
loan to cost (equity) and projected loan to value
moving parts on deal
Solutions:
centre ice location with quality development
comfortable with lease rates and long term viability of sector
stressed underwriting parameters
strong borrower & guarantor, and construction team

Construction Loan Victoria, BC

Loan Amount:
Pricing:
Loan to Value:

$19,925,000
9.0% rate, 2.0% fee
70%

Construction Loan Victoria, BC

Loan Purpose:
Fund the construction of Phase 2 of the project consisting of 27 stratatitled townhouse units
No pre-sales test
Average retail price of units $850,000

Strengths of the Deal:

Well located property with southwest views over Greater Victoria
Limited competition of townhouse product
Contemporary design not seen in this product type before
Long time customer with 25 year track record

Construction Loan Burnaby, BC

Loan Amount:
Pricing:
Loan to Value:

$14,270,000
8% rate, 2% fee
65%

Construction Loan Burnaby, BC

Loan Purpose:
Provide 1st mortgage financing on cost-to-complete basis for the
acquisition and construction of 46 townhomes
Borrower obtained 12 presales totaling $6M prior to funding
Strengths
Experienced developer with numerous projects in Burnaby
Strong location
Low LTV
42% of loan amount presold
Quick Closing as borrower purchasing project from another developer

Metro West Land Loan

Loan Purpose
Assist in purchase of development site at major thoroughfare
Purchase price $4,360,000
LTV 75%
$3,270,000 at 8.99% - 2 % Lender fee
5.26 acre site zoned commercial
Strengths
Services to lot line
Significant preleasing completed for development
Site plan approval required but being processed
Strong personal and corporate covenant
Experienced Developer
Potential sale of portion of land with significant upside
Commitment to funding 6 days including weekend

Metro West Land

Metro East Land Refinance

Loan Purpose
Refinance of existing VTB and equity takeout to provide funds to advance project
development
Loan $3,700,000 at 9.75% 2% Lender fee
Strengths
Appraised at $8 million 46% LTV
Site has been owned for 7 years
18 month term monthly payments interest only from Borrowers resources
Site is 150 acres with approximately half available for development, balance of
land is nature preserve
Currently included in Official Plan as residential but requires draft plan approval
Municipal services at the lot line
New Municipal water and sewage treatment plant under development
Hwy 407 extension just north of property
GO Train service being expanded to community

Metro East Land

Harbour-Transaction 1
Loan Amount:
Loan to Cost:
Interest Rate:
Purpose:
Property Type:
GLA:
Location:

$11,600,000
80%
5.69%
Acquisition
Industrial
224,000 sq. ft.
Vaughan, ON

Harbour-Transaction 1
Challenges:
50% vacant on acquisition, limited cash flow from property
Higher loan to acquisition required
Price sensitivity

Solutions:
Borrower had tenants who committed to move in after closing. Property now over 96%
occupied.
After understanding borrower business plan able to provide high ratio loan.

Harbour-Transaction 2
Loan Amount:
Loan to Cost:
Interest Rate:
Purpose:
Property Type:
Location:

$16,460,000
80%
Prime + 5.00%
Construction
Residential Condominium
Calgary, AB

Harbour-Transaction 2
Challenges:
Borrower reorganization due to financial difficulties
Four buildings being built concurrently with shared services, our financing related to only
two of the buildings.
Price sensitivity

Solutions:
Significant presales in place.
In order to become comfortable, we reviewed Borrowers development history, reviewed
their new business plan.
Cooperative agreements put in place with lenders on other buildings in project due to
shared services.
Due to our understanding of the condominium construction market in Alberta, we were
able to provide a high ratio construction loan.