Hallstone Drewry LP

RESIDENTIAL CONDOMINIUM DEVELOPMENT, Toronto

The Property

  • 23-storey condominium tower (234,000 sq. ft. net) to be developed and built by Hallstone Developments on a site acquired Nov. 2007.
  • Located on a cul-de-sac by Drewry, close to Yonge St. and Finch Ave., North York. (See Hallstone Project Locations)
  • Walking distance to public transit and schools.
  • Desirable, well-established neighbourhood.

The Strategy

  • Hallstone Developments is seeking approval for this project, and it has been progressing smoothly. (See News & Updates)
  • Design to satisfy market demand for affordable, entry-level condominium apartments (100,000 new immigrants take up residence in Toronto annually).
  • Hallstone Drewry LP lends funds to Hallstone, secured by a participating second mortgage on the property, earning 15% p.a. interest.
  • Funds are used primarily to acquire property, create an interest reserve, pay “soft costs” of development and costs of investment offering.
  • Hallstone’s Chairman and CEO, Eran Ostfeld, guarantees loan principal and guarantees hard costs of construction will not exceed 105% of budget.
  • Loan and balance of interest is repaid upon construction and sale of condominium units.
  • Investors entitled to 15% profit participation plus the interest.

The Investment

  • Projected Return on Investment: 20%+ per year, over an expected 24 – 30 month period. 

    This includes:
    • Investors First™ Cumulative, Preferred Return: 15% p.a., including:
      • Cash flow of 10% p.a., paid quarterly.
      • 5% p.a. will accrue to end of term.
    • Profit participation of 15%, in addition to Preferred Return.
  • This is an equity-like investment.
  • Minimum investment (Units of $1,000):  $25,000 

The Developer

  • Hallstone Group of Companies specializes in high density infill housing in the Greater Toronto Area (Read The Hallstone Report)
  • Kirkor Architects have excelled in planning and design of several very successful stacked townhouse and condominium tower projects in the North York centre area, including the impressive NY Towers built by the Daniels Group.

The Documents

 

Want to Learn More about the Toronto housing market?  Read The Hallstone Report.