Case Studies

Our objective is to invest in a diverse portfolio of predominantly first mortgages that are relatively short-term, to provide our shareholders with stable and secure dividends while preserving shareholders’ equity, all within the parameters mandated for a MIC. Working within conservative risk parameters, we endeavor to maximize income and dividends through the sourcing and efficient management of our mortgage investments.

  • $4 Million First Mortgage, Edmonton

    Issue There was limited availability of financing for acquisition of development land, and limited availability of construction financing for condominium project without substantial presales. In addition, financing was not available until all applicable permitting in place.

    Solution Using experienced local developers and a well-located central infill development site, a structured financing solution was devised that allowed the project to proceed with advances of up to 85% of the total development costs and 74% of appraised value.

  • $6 Million Second Mortgage, Vancouver

    Issue The borrower was seeking financing for Phase 1 of a multi-phase townhouse development. Funding was required for servicing of the entire site. There was limited availability of financing from conventional construction lenders due to the large residential land component associated with subsequent phases.

    Solution An experienced developer with strong local market expertise was engaged. A second mortgage was provided to bridge the gap between conventional lender and cash equity provided by the borrower. The loan was structured together with a first mortgage to provide additional funding for subsquent phases after the presale targets were achieved.

  • $8 Million Second Mortgage, Vancouver

    Issue The borrower was purchasing an apartment building on lands with significant redevelopment potential. The vendor had a first mortgage in place which represented only 36.5% of the purchase price. The first mortgage had significant prepayment penalties which required that the existing first mortgage be assumed.

    Solution Atrium provided a second mortgage which provided overall leverage of 65% of the purchase price to bridge the gap between the existing first mortgage and borrower’s available cash equity. The second mortgage also provided for early prepayment provisions in the event that the borrower elected to proceed with redevelopment on the site.

  • $12.5 Million First Mortgage, Toronto

    Issue The borrower had negotiated financing with an institutional lender for the acquisition of a parcel of land approved for a well-located mid-rise residential condominium development. Just two weeks prior to closing, the institutional lender informed the borrower that they could no longer provide the loan for closing.

    Solution Given our familiarity with the location and experienced lending team, we were able to respond quickly enough to provide a replacement first mortgage equal to 70% of the purchase price in time for the borrower to meet the contractual closing date.