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Bank of Montreal

Key Information

Client

Bank of Montreal

Location

Brampton, ON

Topline

Sold 50 acres – development site under Power of Sale

Size

55 acres
 

Challenge


The Bank of Montreal was the primary lender for a development site located at the corner of Airport Rd & Steeles Ave in Brampton. After construction of the first phase of development, the economy turned sour and the developer went bankrupt leaving BMO with a site that had a road network and plan of subdivision in place. Unfortunately, the plan of subdivision was poorly designed and allowed very little room for modification. In addition, the tenant occupying the 100,000 sq. ft.+ facility on the first phase of development had poor credit. BMO directed CBRE to dispose of this property and placed a very high target price/goal.

Solution


CBRE implemented a program designed to maximize value and exposure to the marketplace. The property had been on the market previously with one of our competitors and had received minimal interest. Our strategy involved the creation of a development proforma that was prepared by our in-house engineering team. This allowed us to approach the development community with a quantifiable exit strategy already in place.

Result


Due to a concentrated effort, BMO was able to leverage the experience of CBRE’s team in order to maximize the value of the property by severing the site and selling it to two separate purchasers. The leased building was sold to an investor and the residual land to a developer. In addition, the target price set by BMO was exceeded and the purchasers were still able to derive positive cash flow in a short time period.

 

Team Planeta - Industrial Real Estate

 

Contact

John Planeta
John Planeta*
Executive Vice President, Global Integrated Logistics
Advisory & Transaction
*Sales Representative
+1 416 798 6223
+1 416 994 7900
+1 416 674 6575
Ted Overbaugh
Ted Overbaugh*
Senior Vice President and Managing Director, Industrial & Logistics
Advisory & Transaction
*Broker
+1 416 798 6272
+1 416 674 6575
Chris Planeta
Chris Planeta*
Sales Representative
Advisory & Transaction
*Sales Representative
+1 905 234 1042
+1 289 681 0630
+1 416 674 6575
Grace Kishander
Grace Kishander*
Real Estate Services Team Lead
Advisory & Transaction
*Sales Representative
+1 416 798 6252
+1 416 674 6575
Peter Millesse
Peter Millesse
Director, Industrial, Central Canada, Project Management
Advisory and Transaction Services Industrial
+1 905 234 0382
+1 416 524 3125
Carl Lavoie
Carl Lavoie
Vice President
Capital Markets
+1 416 495 6217
+1 416 494 6435
Quenton Rawlinson
Quenton Rawlinson
Senior Financial Analyst
Advisory & Transaction
+1 416 815 2370