Pinemount Secures Construction Loan for Kitchener Purpose-Built Rental Development

Rendering of the Pinemount West Oak Trail Purpose-Built Rental development in Kitchener

• What: Peoples Group provided a $71.4m construction loan to Pinemount Developments

• Why: The firm is building a purpose-built rental project in Kitchener, Ont.

• What next: Work on the eight-storey building is expected to wrap up in 2027

Pinemount Developments has notched a $71.4m loan to carry out construction of its 172-unit purpose-built rental project in Kitchener, Ont., Green Street News can reveal.

Toronto-based lender Peoples Group provided the CMHC-insured, MLI Select loan. The debt funded last month at a loan-to-cost ratio of approximately 92%. Canada ICI Capital advised Pinemount on the loan.

Work started on the building, on a 2-acre site at the corner of Fischer-Hallman Road and West Oak Trail, in January and is expected to wrap up in October 2027. The project is part of the Cranson Capital Purpose-Built Rental Fund.

Cranson Capital’s PBR fund also has two projects in Toronto and one in Grimsby.

Construction at Pinemount West Oak Trail is now underway.

In Kitchener, the units will be spread across an eight-storey building with a net rentable area of 127,000 sq ft, for an average unit size of 736 sq ft. Rent is estimated to start at around $2,100, with an average estimated rent of approximately $2,300.

The site is 7km from downtown Kitchener and the nearest Highway 401 onramp.

A new net-zero carbon recreation centre is set to open later this year some 500m away.

Pinemount is a Toronto-based development and management firm focused on purpose-built rental housing.