- What Adi Development Group obtained a $155.5m construction loan for the first phase of Realm Condos in Burlington, Ont.
- Why KingSett Capital provided the financing
- What next Adi is gearing up to begin the construction of 401 units
Adi Development Group obtained a $155.5m loan for the construction of two condominium towers that will bring 401 residential units to Burlington, Ont.
KingSett Capital provided the financing, which was a nonsyndicated senior construction loan. This marks Kingsett’s third transaction with Adi.
The 16-storey towers, which will share a five-storey podium, are the first phase of a larger development dubbed Realm Condos, at 4853 Thomas Alton Boulevard. Realm is also slated to include two six-storey condo buildings and a row of three-storey townhouses.
A suite of amenities is planned for the project, including an indoor garden, a lounge, a playroom and outdoor spaces.
The development site is just east of Highway 407 and Appleby Line, and is 6 km from the Appleby GO station. Appleby is home to big-box stores including Rona, Walmart, Toys R Us, Marshalls, Fortinos and Shoppers Drug Mart.
Adi has been gearing up for construction for weeks, erecting a crane on the site in early May. The first phase of Realm is sold out, and registration for phase two is open.
Another of Adi’s Burlington developments, Nautique, landed the developer in hot water in 2022. The Home Construction Regulatory Authority proposed revoking Adi’s building license after the developer cancelled 174 purchase agreements and then tried to resell those units at a higher price. Three months after cancellation, only 27 purchasers had their deposits returned to them.
Adi appealed the HCRA’s intent to revoke its license and ultimately came to a settlement. The developer paid a penalty of $60,000 to the HCRA and made a payment to 141 Nautique purchasers of $2.6m for deposit interest, accrued at a rate of 6%. As part of the settlement, Adi is not allowed to cancel any agreements for Nautique, Realm and another ongoing project unless requested by the purchaser or the purchaser is in default.