Fifty Stones Capital Group Closes Strategic Deal to Backstop Canadian Development Project

November 6, 2023 – U.S.-based real estate financing firm Fifty Stones Capital Group is proud to announce the successful closing of a strategically structured deal on November 6, 2023, to support the development of a 60-unit residential project in Petawawa, Ontario, Canada.

This financing solution was crafted to meet the specific requirements of the borrower’s primary lender, who approved construction financing on the condition that an additional CAD $13 million be secured as a financial backstop. The reserve was intended solely as a safeguard against potential construction cost overruns and is not expected to be accessed.

While Canada is not a frequent funding location for Fifty Stones Capital Group, and the structure of this deal did not fall within its typical scope, the firm was committed to stepping in and finding a way to make the deal work.

“This wasn’t a conventional deal for us, not in terms of geography, structure, or lender requirements,” said a Mark Shea, CEO of Fifty Stones Capital Group. “But we saw a credible project, a responsive borrower, and a broker who, despite initial skepticism about working with us, was transparent and cooperative throughout.”

The borrower, working with Fifty Stones for the first time through an unfamiliar broker, provided thorough documentation, responded quickly to due diligence requests, and demonstrated a clear commitment to closing. This level of professionalism and transparency helped build trust and ultimately motivated the firm to take on the transaction, even with the added complexity caused by the existing lender’s requirements.

Fifty Stones Capital structured the backstop as a hard-money facility, available only in the event of a project budget overrun.

“This deal is a testament to what can happen when the borrower is cooperative, the broker is persistent, and the lender is willing to get creative,” Mr. Shea added. “It’s exactly the kind of challenge we’re built to handle, when others step back, we step in.”

This transaction underscores Fifty Stones Capital Group’s ability to move quickly, structure creatively, and adapt to non-standard scenarios, particularly when integrity and collaboration are evident from the outset.

About Fifty Stones Capital GroupFifty Stones Capital Group is a U.S.-based private real estate lending firm specializing in bespoke, asset-based financing solutions for developers, investors, and brokers. With a focus on speed, flexibility, and transparency, the firm helps close complex transactions in markets across North America, even when the odds aren’t in favor.

About Fifty Stones Capital Group

Fifty Stones Capital Group is a U.S.-based private real estate lending firm specializing in bespoke, asset-based financing solutions for developers, investors, and brokers. With a focus on speed, flexibility, and transparency, the firm helps close complex transactions in markets across North America, even when the odds aren’t in favor.