Harmony Village Sheppard Project Defaults on Pre-Construction Buyers

June 26th, 2017 · 2 Comments · Property Management

The project is bankrupt and in spite of having received millions of financing there’s no sign of it on the site, which is still a parking lot with a hole or two dug in it and some piles of contaminated dirt lining the back of the property.

None of the developers who could have bought the bankrupt site, wanted the original purchasers of the site from 2011. Which begs the question, why wasn’t the building built as soon as the buyers were in place.

Bottom line is the buyers got screwed by putting down payments on the project and the builder just failing to build. We don’t need too many more of these failures, to wind up with a very disillusioned buyer pool and there have been a number of these kind of failures. See developers do not give a shit about buyers, and with these kinds of appreciation it’s just simply more profitable to throw your original buyers under the bus, give them their money back and move on.

The problem with this type of behavior is it eventually comes back to haunt the industry because these types of abuses invite new regulations. Just ask the landlords how they like their new 1.8% rent increase for 2018.

Just this year, we’ve had Urbancorp go bankrupt, Mimmico on the Go, and now Harmony Village Sheppard.

Consumer Confidence Will Suffer

 

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2 Comments so far ↓

  • Jack Pong

    Your comment about Developers not caring is not appropriate here. I have be desperately trying to refinance the property and have large investors and financing lined up to build the development but due to the process the receiver has put in place it has not allow me sufficient time to put this financing in place. I have put my heart and soul into this project but apparently this is not enough, I do apologize to all the Purchasers, employees and all the trades and people that have supported me that I have let down. My deepest apologies to all who I have failed! J. Pong

    • Rachelle

      Jack, the buyers bought in 2011, it is 2017. You had six years to get it together,how much more time do you need? Further this parcel’s purchase price was 4.6 million according to the title search. If I was king, I’d be asking for receipts for the rest of the money. Well we know the Fortress financing you signed for cost 10 million but there is still lots of unaccounted for funds, that was supposed to be used on the site. If the RCMP and OSC and FSCO and CRA weren’t such a bunch of pussies, they’d be asking you these questions instead of me.