M.Y. Residential (“Company”) owned a low-rise student housing residence with 28 suites and 100 beds located near Queen’s University in Kingston, Ontario (“Property”). KSV was appointed by the Court as receiver and manager of the Property pursuant to an application by the sole registered mortgagee, owed approximately $9.5 million at the date of the receivership.
During the proceedings, KSV worked with the property manager, including with respect to rent, occupancy, property tax and operating issues. The Property was fully leased and generating positive cash flow; however, a leasing program needed to be put in place for the next school year, which KSV executed with the property manager. KSV also carried out a sale process which resulted in a Court-approved transaction for the Property. The proceeds were sufficient to repay the secured creditor in full, subject to determination of the claims of the Company’s general contractor.