Project consists of 223 units containing 267 beds and is secured with a 64% loan-to-value ratio
KingSett Senior Mortgage Fund LP (the “Fund”) recently provided an $84 million construction loan for an 18-storey purpose-built student residence near the Toronto Metropolitan University. The project consists of 223 units containing 267 beds and is well secured with a 64% loan-to-value ratio.
Completion is expected in Q4 2026, at which point the Fund’s loan is expected to be refinanced through CMHC’s MLI Select program, benefiting from the project’s environmental and accessibility features. The Fund’s loan structure is further strengthened by a $17 million subordinate loan from the KingSett High Yield Fund.
The building will offer modern student-focused amenities, including collaborative spaces, a gym, an event kitchen and a games room. Underwritten rents align with market rates for similar student housing projects in the area.
With an interest rate of Prime + 2.10% and a 1.00% lender’s fee earned upfront on the committed loan amount, the Fund is earning an attractive risk-weighted return.
The borrower has over 25 years of real estate investment and development experience. KingSett has financed six prior projects with this developer, including three purpose-built student residences, all of which were completed and refinanced in due course.
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.
