Recently a broker contacted Equitable Trust about a three story
semi-detached, multi-residential property located in the heart of Montreal in
the Ville Marie district. The 1915 built structure with 11 units is in an
ideal location. The building is showing its signs of age and will require
some major renovations. To comprehend the potential work needed, a
building inspection report was ordered. A fire destroyed a building in
the same location years ago. Subsequently the building was demolished and the
land was filled with unknown materials causing some environmental concern.
Equitable Trust provided a first mortgage of $615,000 with a 65% LTV for
a five year fixed rate of 4.95% with a 25 year amortization. The proceeds
were used to pay out the existing lender and to cover the cost of the
renovations and soil decontamination.
A vacant commercial property located in an excellent Montreal
location required the building of an additional floor, an expansion and
significant upgrades to attract new tenants. The commercial property had
pre-leased some the space for occupancy which was contingent on the completion
of the work stated. By making these upgrades, the property will increase
its visibility and desirability to attract new tenants.
a result, Equitable Trust provided a loan amount of $3,800,000 with an initial
advance to repay the existing debt against the property and the balance on
progress draws as the work is completed. The term of the loan is 18
months on an interest-only basis. The tenants are now taking occupancy
since the work is now complete. Once stabilized, the property will be
refinanced with long-term take-out financing.
Commercial Recent Financings (English) 03.05.2012
Commercial Recent Financings (English) 10.19.2010