In recent years, real estate bankruptcies have become quite common, but it’s rare to see involvement from Canada’s largest banks, making a recent situation stand out.
The project in question is the Burlington Waterfront, a 27-storey mixed-use condominium being developed by Core Development Group based in Toronto through Core FSC Lakeshore Limited Partnership and Core FSC Lakeshore GP Inc.
This site comprises a land assembly that includes 2093, 2097, and 2101 Old Lakeshore Road as well as 2096 and 2100 Lakeshore Road. It’s located just two blocks east of the Waterfront Hotel Burlington and only steps away from Lake Ontario’s shoreline.
The area currently holds five buildings along with a parking lot; only one of these buildings has tenants, while the others are empty and boarded up.
As per City of Burlington records, the Ontario Land Tribunal approved this project back in May 2022. Plans include 310 residential units alongside commercial space on the ground floor, an underground parking garage spanning five levels, plus public space privately owned along the western property line.
Behind The Scenes
Toronto-Dominion Bank (TD Bank) started receivership proceedings with an application dated April 29 concerning a first-ranking land loan that both parties entered into in February 2023 for $18,000,000.
TD Bank indicated that this loan was due upon demand and their agreement allowed them to “accelerate the payment of the obligations” if there was a default or if TD didn’t approve development financing by February 28, 2026.
The loan had backing from Core Development Group but also Forgestone Capital via Forgestone Capital Fund No. 2 LP, FSC Old Lake GP Inc., and FSC Old Lake Limited Partnership. According to TD, Core Development guaranteed up to 25% of all outstanding liabilities while Forgestone covered the remaining 75%.
The Burlington Waterfront project set for 2093, 2097, and 2101 Old Lakeshore Road plus 2096 and 2100 Lakeshore Road in Burlington. (Studio JCI, Core Development Group)
As noted by TD Bank as deadlines approached for development financing, discussions began among the three parties in December 2025 to deal with obligations and consider selling the property. These talks carried on into February when TD found out about a second mortgage placed against the property by Forum Subterra General Partner Inc. amounting to $249,390.
Subterra Renewables specializes in geothermal heating and cooling systems for developers and has worked together with Forum Asset Management since late 2019 under Forum Subterra Limited Partnership. Earlier this year Forum acquired Subterra.
The Receivership
TD claims that registering this second mortgage without their approval constituted a default. Furthermore, borrowers failed to make an interest payment due on February 9 totaling $67,924.23 which represented yet another default situation. Consequently, TD formally demanded payment on March 4 stating they were owed $18,240,367.62 as of April 28 with ongoing interest accumulation.
“In the circumstances set out above I believe that it is just and equitable that a receiver be appointed by the Court,” stated Dave Gemin who is a Director of TD Bank’s National Real Estate Group in an affidavit dated April 28.”
“A receiver is necessary for protecting and realizing both Real Property interests as well as those belonging to TD along with all stakeholders,” added Gemin. “TD believes appointing such a receiver would improve chances for recovery for TD while safeguarding all stakeholders.”
The Ontario Superior Court of Justice approved TD’s receivership request on May 19 with judges acknowledging support from Forgestone regarding receivership.
This property will now undergo a court-ordered sales process.
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