TORONTO, Oct. 5, 2023 /CNW/ – Peakhill Capital and Z Modular are proud to announce the closing of a $26M CAD deal to finance construction of the first modular apartment project in Canada to be insured by CMHC.
The project, known as Fuze Lucan, is comprised of two, four-storey apartments with 90 units and 141 parking stalls, located at 280 Main Street, Lucan Ontario.
Modular builds differ from typical construction models in that they are constructed off-site, transported by blocks, then assembled sequentially on-site. Modular construction offers a more sustainable alternative as it reduces material waste, operational energy, and emissions. This brings a new level of greener practices to real estate construction. Sustainable benefits of modular builds can help improve the well-being of key stakeholders, such as surrounding communities and the environment. Modular builds can also help address affordability and shortage challenges faced by the Canadian housing market. With this new involvement from CMHC, the closing of this deal marks a key move towards opening up opportunities to finance more modular builds in the future.
Peakhill is proud of its continuous involvement in ESG-based initiatives and have already committed to funding a second modular property with Z Modular. “We continue to look for opportunities to access efficient, affordable, and flexible financing and have furthered this commitment in the creation of a housing impact fund, slated for launch early next year”, said by Jen Harrop, Senior Vice President, Fund Management at Peakhill Capital.
“Z Modular offers an innovative approach to multi-family housing development that enables accelerated construction timelines” explains Mickey McNamara, President of Z Modular. “Following construction of the GEM Residence at St. Clair College’s Windsor campus, Fuze Lucan is our second project in Canada, and we’re looking forward to working with Peakhill Capital on this and future projects.”
About Z Modular
Z Modular, founded in 2016, is an integrated self-development company that combines development and design with off-site and on-site construction, specializing in steel-framed building solutions. It is a subsidiary of Zekelman Industries, the largest independent steel pipe and tube manufacturer in North America. Key market sectors that Z Modular serves are multi-family residential, hospitality, and senior housing.
About Peakhill Capital
Peakhill Capital is an asset manager with a direct lending platform and a joint-venture equity program. Peakhill Capital is a full service direct lender across the full capital stack on all asset types across Canada, and is also a CMHC approved lender for multi-unit residential term, construction and affordable programs. Peakhill Equity Partners is its equity division, investing in ground-up development and value-add projects in Canada and the US. Peakhill Equity Partners seeks to identify equity investment opportunities with superior risk-adjusted returns through the capital structure. Peakhill will close $3B of CMHC and conventional loans in 2023 throughout North America.