- What Nahid has received nearly $100m of construction financing for a condo project
- Why Despite a difficult condo market, presales at the project helped it move forward
- What next Construction has just begun
Nahid has received nearly $100m of financing for a Toronto condominium project, Green Street News can reveal.
The firm has just started development of the 269-unit Nahid Kennedy, at 615 Kennedy Road. KingSett Capital provided an $80m first mortgage, and Fiera Capital wrote a mezzanine loan that’s just shy of $16m. The loan-to-value ratio is 64%, and the loan-to-cost ratio is 71%. The financing closed on Dec. 6.
Capital advisory firm Finneo advised on the financing, which took nearly a year to iron out amid headwinds facing the condo market. The firm employs a technology- and data-focused approach to facilitate deals.
The 10-storey project is a kilometre from the Kennedy subway and GO stations, and less than 1 km from four TTC bus lines, including a bus stop directly in front of the building for Line 113. Amenities include a movie theatre, a gym, a rooftop terrace, facial recognition door access and a parcel delivery integration system.
The project is slated to have 177 one-bedroom units, 65 two-bedroom units and 27 with three bedrooms or more. There will be 182 parking spaces, most of which will be underground.
Insiders say this condo project was able to move forward because presales were in place prior to steep interest-rate hikes in 2022; since then, building costs have stabilized and interest rates have started falling.
An Avison Young report said Toronto’s condo market slowed to historic lows during the third quarter due to a combination of limited project launches and low investor demand. The firm noted that demand persists for well-located, appropriately priced, high-density development sites.
