The long-delayed construction of the Collier Centre has begun anew, says the developer who recently took ownership of the project.
On Monday of this week, Richmond Hill-based Fortress Real Developments, Inc. announced they had completed acquisition of the downtown Barrie project.
Jawad Rathore, President and CEO of Fortress, said the deal was not an easy one.
“From the outset it was plagued by every conceivable issue,” said Rathore.
The Collier Centre and Lakeview Condominiums project broke ground in September of 2012 and had originally been scheduled for a September 2014 completion date.
A mixed-use development, the centre combines residential, retail and office space in an 8-story tower on an acre of land across the street from City Hall.
In a press release dated Monday, Fortress described the project as 65 percent complete, having come under ‘distress’ in November of 2014.
The project fell under financial difficulties under original developer, Windsor-based MADY Group, despite having pre-sold all 82 residential condominiums and leased almost 70-percent of retail space.
The average selling price for residential units was $248,000, for a total of $20.3-million.
MADY cited cost over-runs — caused by bad weather, sub-trade failures and project expansion — as contributing factors for the financial difficulties.
As of a February 2015 filing by MADY to restructure the debt, the project had incurred costs of $51.3-million with an estimated $29-million needed to complete construction.
Last July, Fortress announced it had begun the process of purchasing the project, pending court approval.
“We were ready to close in August, but had to arrange a new financing package,” said Rathore.
As result of Monday’s announcement of the deal closing, trades people and suppliers are once again on-site, completion of the project will take an estimated 12 to 14 months.
Fortress has awarded the construction contract to EllisDon.
"Our team is mobilized and ready to commence work. We look forward to working with Fortress on this project" said Kieran Hawe, senior vice president Toronto-area manager for EllisDon.
