Recently a broker contacted Equitable Trust about a three story semi-detached, multi-residential property located in the heart of Montreal in the Ville Marie district.  The 1915 built structure with 11 units is in an ideal location.  The building is showing its signs of age and will require some major renovations.  To comprehend the potential work needed, a building inspection report was ordered.  A fire destroyed a building in the same location years ago. Subsequently the building was demolished and the land was filled with unknown materials causing some environmental concern.

 Equitable Trust provided a first mortgage of $615,000 with a 65% LTV for a five year fixed rate of 4.95% with a 25 year amortization.  The proceeds were used to pay out the existing lender and to cover the cost of the renovations and soil decontamination. 

  As a result, Equitable Trust provided a loan amount of $3,800,000 with an initial advance to repay the existing debt against the property and the balance on progress draws as the work is completed.  The term of the loan is 18 months on an interest-only basis.  The tenants are now taking occupancy since the work is now complete.  Once stabilized, the property will be refinanced with long-term take-out financing.