62 Charles Street East - MLS Launch

Earlier this year, we finally signed the deal with Castle Rock Homes (https://www.castlerockhomes.com/) (“Castle Rock”), to proceed on their plan to design and pre-sell up to 4 high-end condominium units at the property in partnership with Nazem Rose Design (www.nazemrose.com) (the “Designer”) and architect Lorne Rose (www.lornerose.com) (the “Architect”).  There were a lot of moving parts to this deal on Castle Rock’s side as they had to finalize arrangements with the Designer and the Architect prior to signing the contract with us.  While we were working on getting this deal signed, the Architect and the Designer completed all of the work on the design and renderings with realtors Paul Maranger and Christian Vermast at Sotheby’s (https://www.paulandchristianassociates.com) (the “Agents”). 

Castle Rock Homes has built out a sales centre inside our building and the Agents recently launched the following MLS listings:

Semi:

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Upper:

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Lower:

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Inside the sales centre, prospective buyers can see three dimensional renderings of the finished product on their smartphones as they tour the house.  This offers a materially greater feeling of what the final product will be like compared to the typical “sale from plans” model.

The terms of the deal require at least 3 of 4 units to be sold prior to commencing construction (each of those sales would be conditional on this threshold being met).  The developer believes the total construction costs would be approximately $4.5MM.   We would receive a base amount of $9MM for the land and building and earn 50% of profits after all expenses are paid.  Castle Rock has an 8-month period to sell the units, but we have an option to terminate this agreement at any time during those 8 months upon paying an $80,000 fee.  If we, or the Agents receive any offers for a commercial or other use for the property during the sales period that would be better for us, we would accept that offer and pay the $80,000 fee.  This scenario is plausible as the Agents have also distributed targeted mailers to all the plastic surgeons in the GTA as well as many high-end dental practices and other boutique professional practices.

We are encouraged by the optimism of the Agents, the Architect, the Designer, and Castle Rock for this project evidenced by their investment in it.