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Financing, Phase 2 of the Green Mezzanine Project | François Faucher



Financing

In this pivotal year of 2023, our team had the exceptional opportunity to assist a seasoned investor in financing Phase 2 of the Green Mezzanine Project, an iconic building located in the heart of Quebec City.

A project of colossal dimensions

The Green Mezzanine Project has stood out as one of the most significant ventures in Quebec City’s urban landscape. Phase 2, in particular, captured attention, resulting in the creation of 258 new housing units. Unlike Phase 1, this stage achieved resounding success, reaching expected profitability despite challenges related to rising interest rates and construction costs. Through savvy cost management and an effective marketing team, all units were leased before the completion of construction, rewarding the owners with a 0.25% leasing performance bonus from the CMHC.

Innovative financial strategies

The financial success of the project did not come without effort. We meticulously worked on the pro forma from the outset to maximize every invested dollar. Continuous adjustments to pro formas and plans were necessary to finance 95% of the costs, despite the increase in interest rates. The use of a forward swap on the rate proved crucial, ensuring a favorable rate aligned with economic forecasts. Substantial challenges also emerged regarding income and expenses, requiring considerable work to justify the figures to the CMHC.

Recognition and gratitude towards an exceptional team

Such a success would not have been possible without the exceptional commitment of our team. The unwavering dedication of each team member ensured the creation of a financing brochure that met the high expectations of the CMHC. Our sincere thanks also go to our clients, whose trust and collaboration were essential in overcoming the unique challenges of the year 2023.

Transaction success

With this enriching experience, we invite you to contact us for your large-scale financing projects. Our commitment is to find the best strategy tailored to your portfolio while adjusting to the specific needs of your team. Together, let’s continue the path to success in your future real estate projects.