Fortress Real Developments is taking sole ownership of the Collier Centre project in Barrie, the second troubled Mady Development site that Fortress has acquired in six weeks. Here are three things to know about the deal.
1. It hasn't been easy
Fortress EVP Frank Margani, who's been leading the deal process, says it’s been challenging “given what was left from the previous developer,” who sought creditor protection earlier this year. Colliers Centre, which began construction in 2012, is 65% complete and will need another year of work before it's ready for occupancy. Fortress says it will unveil its completion plans once the sale gets court approval. The developer has lined up a large-scale national builder that's ready to get started on what it's calling a “complex build.”
2. But much is already in place
Leases are signed with Bank of Montreal, City of Barrie and Sobeys, and 67% of Collier Centre's commercial-retail component is spoken for. The residential, Lakeview Condominiums, a seven-storey building across from city hall and overlooking Kempenfelt Bay, is sold out. Fortress SVP Ben Myers notes Barrie, like many Canadian midsized municipalities, has “embraced the condominium," with over 300 suites under construction as it intensifies in accordance with Ontario's growth plan. CEO Jawad Rathore says Collier Centre will be the “best address in Barrie."
3. It's not only Barrie
Fortress has been involved in three other projects with Mady. The firm exited its interest in a JV with the company in Burlington (Bridgewater); it’s the lead builder on another site they partnered on in Winnipeg; and last month it acquired Brookdale on Avenue Road (above), a mixed-use development with 20k SF of commercial space. “It doesn't happen often," notes Jawad, " but when the situation presents itself, we have the savvy and the capital strength to do what needs to be done.”
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