Real estate developer Vandyk Properties is facing a potential receivership as lenders aim to recover over $203 million related to multiple development projects. KingSett Mortgage Corporation and Dorr Capital Corporation have filed an application seeking a receivership order for five Vandyk developments, including UPtowns and Heart Lake in Brampton, The Ravine and Lakeview DXE Club in Mississauga, and Grand Central Mimico in Toronto.
These lenders provided funds for the projects, with amounts owed by Vandyk totaling $169,977,089 to KingSett and $34,000,000 to Dorr. Alleged issues outlined in court documents include cost overruns, mismanagement of funds, failure to address construction liens on UPtowns, Grand Central Mimico, and Lakeview, and non-payment of monthly interest on The Ravine, UPtowns, and Heart Lake.
Demand letters were issued to Vandyk in September, but no payments were made, leading the lenders to express a lack of confidence in Vandyk’s ability to fulfill obligations, secure refinancing, manage properties, and complete developments in a timely manner, if at all.
The five projects, anticipated to yield 1,757 homes, have experienced construction delays and financial troubles for several years. For instance, UPtowns, a townhome community near Turnberry Golf Course, faced construction delays despite pre-construction sales starting in 2017. Heart Lake, adjacent to UPtowns, is involved in a separate lawsuit, and Grand Central Mimico, which halted construction, faces multiple liens for unpaid work.
The claim by KingSett and Dorr does not address two other Vandyk projects facing separate claims for unpaid work, namely The Backyard condos in Etobicoke and the Buckingham project near Grand Central Mimico.
Speculation about Vandyk’s financial issues has grown, with indications such as the attempted sale of assets earlier this year and ongoing construction delays. Vandyk, operating in Florida as well, has faced challenges with projects like SIX88 in Sarasota, where construction progress appears stalled. The company’s restaurant, The Shack in Cortez, Florida, was listed for sale in April, but property records still show Vandyk as the owner.
As rumors circulate, Vandyk Properties has not responded to recent requests for comment, and KingSett declined to provide further information on the matter. The situation underscores the challenges and uncertainties in the real estate development landscape.