A big construction hole in the heart of the Burnaby Heights neighbourhood is for sale for $16 million.
The property at is the site of a partially constructed five-storey mixed-use project dubbed Siena at the Heights that went into receivership in February.
Deloitte, the court-appointed receiver, has now retained real estate firm Goodman Commercial to sell the 17,222-square-foot property, according to a listing published Wednesday.
The listing noted 34 of the 44 strata units have been pre-sold, and significant work has already been completed at the site.
"All permits are in place, municipal fees have been paid, excavation and shoring are completed and the parkade structure has been started," stated the listing.
Developer I4 Property Group, which bought the property in 2017 and began construction on the project in 2022, opposed the receivership and sale.
In a December court filing, the company said the project had been halted but was "not suffering any damage or waste."
If the receivership petition was refused, the company said it could restart work on the project "very easily."
I4 Property Group outlined a new project budget of nearly $49 million that it said it could meet with a combination of financing and payment deferrals.
The developer warned receivership and the sale of the property would likely lead to losses.
"The cost and borrowings of a receiver to finish the project will be very substantial," the company said, "and a sale of the project in its present condition is not likely to even discharge the mortgage in favour of the petitioner (Desjardins Financial Security Life Assurance Company, the main lender on the project)."
If the receivership went ahead, I4 Property Group said various lien claimants, which include a list of contractors, would likely lose the amount of their liens, and the limited partners would likely lose their investments.
The receivership was approved nonetheless.
I4 Property Group , saying it had been unable to conclude satisfactory financing arrangements.
In the court filing, the developer said the builder, Kerkhof Construction 2022, "had difficulty with the excavation" and the project was in financial trouble by June 2023.
I4 Property Group fired Kerkhof in September 2023, but the difficulties with the contractor caused "massive delay," according to the court filing.
Desjardins, which filed the petition against I4 Property Group and various contractors said it was owed $14.55 million, plus interest, as of Oct. 24.
According to the most recent assessment (July 1, 2024), the property is worth about $12.27 million ($9.1 million for the 0.4 acre of land and $3.16 million for the buildings).
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