Court documents show that the debtor failed to cough up a $400,000 interest payment to Homedale-Eagle Corporation that was due on November 2, 2023, and has been in default of the loan ever since.A three-tower development that would have brought over a thousand residential units to Brampton’s Queen Street East corridor is in hot water over a $10M vendor take-back mortgage., dated January 26, 2023, site owner 253 Queen Street Inc.
The project drew in the likes of BDP Quadrangle — a rather high-profile architectural firm based in Toronto — as well as award-winning landscape designers DTAH.The receivership documents initiated by Homedale state that the mortgage taken on by U Developments was amended on two occasions to extend the maturity date of the loan and increase the interest rate to 8% per annum, payable in quarterly installments of $200,000 on August 2, 2023, November 2, 2023, February 2, 2024, and May 2, 2024.
In addition, the court documents say that the property in question is subject to a subordinate mortgage in the principal amount of $2M registered in favour of Sky Mortgage Corporation. Sky Mortgage is also in financial default. Following a class action claim in the GTA, a second lawsuit alleges that real estate brokerages and boards in every Canadian province and territory have conspired to inflate commission fees paid by sellers.The second and third phases of an upscale condominium community in Markham have been embroiled in receivership proceedings since December, and those came to a head last month.