RECOVERY CAPITAL

we Maximize lender RECOVERY FROM DISTRESSED ASSETS

In 2024, Imprint launched Recovery Capital to serve an emerging need in the Canadian real estate sector.

Due to challenging market conditions for new construction, there has been a sharp increase in receiverships and court-ordered sales. In many cases, the value of a development site is substantially less than its outstanding loan balance. When this happens, lenders do not have good options, and carrying costs continue to mount.

To solve this problem, Imprint has raised dedicated capital to re-entitle or optimize distressed development projects.

We take a bespoke approach to each site, which may include:

  • Permit revisions to optimize building efficiency

  • Minor variance to add density or improve building efficiency

  • Full rezoning

  • Conversion from condominium to rental tenure

  • Construction management to regain control of budget and schedule

  • Building launch - leasing and operations

Our approach will not work for every project, but in many cases we can add substantial value. If the lender does not want to extend the funds required to complete this process, Recovery Capital can fund 100% of project costs using our own DIP financing, at below-market rates.

After Recovery Capital completes approved business plan, the lender or its representative takes the site back to market, benefiting from the increase in value that we have created, and from selling into a more favorable market.

how do we do it?

Best-in-class development management

Imprint is a seasoned, best-in-class developer of purpose-built rental and mixed-use housing, both in Canada and the USA.

We have a track record of fixing broken projects — from ending chronic cost overruns to accelerating construction timelines. We are accustomed to working with institutional clients and investors, and we will bring this level of excellence to your project.

There are several firms that specialize in taking over partially constructed projects in receivership. But Imprint is the only firm in the GTA with deep experience in development and rental operations.

rescue capital

For lenders and court-appointed receivers who would prefer not to advance funds for distressed projects, Recovery Capital can fund all project costs using our DIP financing program. This program is available both pre- and post-enforcement, subject to project underwriting.

Many sponsors lack liquidity to carry projects through a turbulent market, even though their projects will likely be successful in the future. We can provide much needed capital in the form of equity, senior debt, and in-kind management services to projects that need a lifeline.

Rental conversions

Favorable financing programs from CMHC can make conversions from condominium to rental tenure attractive. We are experts in rental design, construction, operations, and asset management. We can assist with all aspects of rental conversion, including:

  • Optimizing design for property operations, leasing, and maintenance

  • Improving interior design to maximize lease conversion and exit value

  • Increasins ancillary income

  • Development budgets, operating budgets, and project proformas

  • Construction management plans to minimize the impact on leasing

  • Staffing and management plans

  • Building launch plans