Project to deliver 386 residential units, daycare space and 6 townhomes
KingSett’s Senior Mortgage Fund LP (the “Fund”) recently financed a $110 million construction loan, pari-passu with $50 million from a credit union, for the construction of a 36-storey residential condominium tower including 386 residential units and daycare space. The project also includes six townhomes.
The project is 96% pre-sold with 15% of pre-sold revenue secured through purchaser deposits. At this level of pre-sales, the Fund’s loan is expected to be fully repaid without the need for additional sales. Additionally, 89% of the project's hard costs are now fixed by construction contracts, reducing the risk of unexpected budget increases. The Fund’s loan structure is further strengthened by a $34 million subordinate loan from the KingSett High Yield Fund.
The Fund is well secured at a 62% loan-to-value ratio with solid interest income at Prime + 2.50% and an upfront lender fee equivalent to 1.0% of the committed loan amount. The project is expected to be completed in Q2 2027, at which point proceeds from pre-sales will fully repay the Fund’s loan.
The borrower has more than 25 years of development experience in BC and was previously involved in five other residential projects financed by KingSett where they have proven their ability to execute.
About the KingSett Senior Mortgage Fund LP
KingSett Senior Mortgage Fund LP is an open-ended fund focused on first mortgage lending. The Fund’s objective is to provide mortgage credit to experienced and financially sound borrowers with high quality real estate assets or projects in the most liquid markets such as Toronto and Vancouver. The loan portfolio is diversified by location, property type and asset class, with a focus on sectors with strong operating fundamentals where demand exceeds supply.
