Mizrahi Development Group (1451 Wellington) Inc., CCAA

Mizrahi Development Group (1451 Wellington) Inc., the real estate development company behind 1451 Wellington—The Residences at Island Park Drive, a luxury Ottawa condominium development, obtained CCAA protection on October 15 listing liabilities of $87.7 million, including $81.1 million to TCC Mortgage Holdings, a company related to Trez Capital.

The project — a 12-storey luxury condominium — has faced significant delays and is 85% complete, with remaining work including interior finishing, exterior cladding and roofing.

The purpose of the CCAA filing is to complete a financial restructuring to ensure the project can be completed, including by reducing interest costs through a DIP loan from TCC that will be used to fund the completion of the project, which the company estimates will take 7 months and cost approximately $23 million to complete.

MNP is the monitor.

Counsel is Cozen O’Connor for Mizrahi Development, Chaitons for the monitor and Bennett Jones for TCC.