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.
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.
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