The Greater Toronto Area’s real estate landscape, while still robust, is seeing an increase in distressed properties. ELM Developments, through its specialized division ELM Forward, is strategically positioned to capitalize on these opportunities. According to Elliot Steiner, President of ELM Developments, speaking at InsolvencyInsider’s Distressed Real Estate Conference, the focus should be on finding creative solutions to minimize losses in these situations.
ELM Forward, established three years ago, focuses on stabilizing and revitalizing projects facing receivership or other financial difficulties. This division works with lenders, receivers, and other third parties to assess and improve distressed assets. Steiner emphasizes that the key is to identify projects with underlying potential. A prime example is the Elevate Condos project in Kitchener, a four-tower development that fell into receivership in October 2023. ELM Forward stepped in, partnered with Genesis Mortgage Investment Corporation and Dorr Capital Corporation, and ultimately secured court approval to take over the project in October 2024.
This isn’t an isolated case. ELM Forward is also involved in the Vandyk Group’s Uptowns and Heartlake townhome projects in Brampton, which entered receivership in November 2023. ELM’s role initially was to stabilize the sites, later expanding to development manager.
Steiner highlights the importance of quickly stabilizing distressed properties to prevent further damage and loss. This includes securing the site, protecting it from the elements, and addressing any immediate safety concerns. ELM Forward’s approach involves a thorough assessment of the project’s viability, followed by strategic planning and execution to maximize its value. They determine whether to simply stabilize the asset for sale or to invest in its completion and long-term success.
ELM’s history showcases its adaptability to market fluctuations. Beginning as a glazing company in 1985, it evolved into general contracting and navigated the housing market crash of the ’90s by focusing on industrial and commercial projects. Today, with ELM Forward, the company is poised to play a significant role in shaping the future of distressed real estate in the GTA and beyond, proving that even in challenging times, opportunities exist for those with the right expertise and vision.
