333 6 Avenue NE: ten Calgary suites and two lenders after the same rents

The property at 333 6 Avenue NE, in Calgary, is ten legal suites registered as the ten units of Condominium Plan 0812911, and one numbered company, 2404875 Alberta Ltd., holds title to all of them. In February 2023 CMLS Financial Ltd. agreed to refinance it under CMHC's MLI Select program: a CMHC-insured first mortgage of $1,858,890 including the insurance premium and application fee, amortized over 600 months with the rate capped at 4.54%, maturing June 1, 2033, with no right to prepay. The net $1,839,000 was to discharge $1,710,000 of existing mortgage debt, the balance to be used under CMHC's equity-takeout guidelines, and CMHC would not authorize the advance until the suites were shown to generate annualized effective gross income of $158,193. The commitment also bound the borrower to keep at least 80% of the units as affordable housing, at rents at or below 30% of the median renter income in the market, for ten years; to sell no unit on its own; and "not to further encumber the Property in any manner," per the Affidavit of Jeff Burt, Aug. 6, 2026, Ex. "B" (Commitment Letter, Feb. 9, 2023), pp. 1–4, 6–7, 10.

Three and a half years later the suites are in a receiver's hands. On August 13, 2026, in the Court of King's Bench of Alberta at Calgary, Court File No. 2601-14150, Justice Mah appointed Ernst & Young Inc. (EY) receiver and manager of all of the company's property under s. 243(1) of the Bankruptcy and Insolvency Act, s. 13(2) of the Judicature Act and s. 49 of the Law of Property Act, on CMLS's application, per the Receivership Order, Aug. 13, 2026, para. 2. Among CMLS's grounds was a second lender's claim to the same rents. Domain Mortgage Corp. had registered a $2.5 million mortgage against all ten titles in April 2024, and in July 2026 it applied, in its own action, to have MNP Ltd. collect the rents and, after the rent receiver's costs and property taxes, pay them to Domain, per the Affidavit of Jeff Burt, Aug. 6, 2026, Ex. "H" and Ex. "J", Sched. "A", para. 16.

Arrears since July 2025

The account of the default is sworn by Jeff Burt, CMLS's director of special servicing and loan workouts, in Vancouver on August 6, 2026. He describes the company — "240" in CMLS's papers — as a real-estate holding company that owns the lands and the premises on them. CMLS holds, through Computershare Trust Company of Canada as its custodian and agent, the mortgage, a general assignment of rents and leases and a general security agreement over the personal property on the lands, all dated March 13, 2023 and all registered first, per the Affidavit of Jeff Burt, Aug. 6, 2026, paras. 12–14.

According to CMLS's records, the defaults began in July 2025. The monthly payment of principal and interest, $7,129.38, went unpaid from July 2025 to February 2026, with further amounts outstanding through August 2026, and none of the $4,500 monthly escrow instalments for property tax was paid from July 2025 to August 2026, "which has resulted in the accrual of property tax arrears for the Lands," per the Affidavit of Jeff Burt, Aug. 6, 2026, para. 15(a)–(b). The company also failed to name Computershare, care of CMLS, as first loss payee on its insurance, and did not maintain insurance for August 2025. Last on the list, it permitted Domain to register a second mortgage against the lands "without prior written or any approval from CMLS," per the Affidavit of Jeff Burt, Aug. 6, 2026, para. 15(c)–(d).

On March 19, 2026, Gowling WLG (Canada) LLP, for CMLS, demanded $1,873,640.84, calculated to March 16, from the company and from its sole director, who had guaranteed the loan with full recourse, and served a notice of intention to enforce security under s. 244 of the BIA; both expired on March 30. A forbearance agreement was drafted and presented to the company and the guarantor, who "failed, neglected or refused to enter into the same," per the Affidavit of Jeff Burt, Aug. 6, 2026, paras. 16–18, Ex. "B", p. 1 and Ex. "I". In about March 2026 the company agreed to pay $5,000 a week toward the arrears, and stopped after four weeks. It has not given CMLS a rent roll since 2024, so "CMLS has no knowledge as to whether the premises located on the Lands are rented or vacant," and CMLS understands that the company "has not maintained fire insurance for the Lands," per the Affidavit of Jeff Burt, Aug. 6, 2026, paras. 19–20, 28.

CMLS puts the debt at approximately $1,886,193.96 as of August 6, 2026, plus interest and costs, and calls the figure an estimate "As a result of certain accounting issues related to periodic payments made by 240 to CMLS," per the Affidavit of Jeff Burt, Aug. 6, 2026, para. 11. Its payout estimate starts from principal of $1,824,637.01 as of January 1, 2026; adds $43,148.81 of interest to August 6, $1,375.39 of late interest, $70,883.22 of yield maintenance, $6,431.24 of legal fees with more to be determined and a $235 returned-item fee; and credits $60,516.71 standing in the tax and reserve account, with interest and late charges running at $205.74 a day, per the Affidavit of Jeff Burt, Aug. 6, 2026, Ex. "C".

The second mortgage

Domain's account comes in as exhibits to the Burt affidavit: its application and the affidavit behind it, sworn on July 15, 2026 by Lisa Ward, Domain's vice-president of risk management and of credit. By a commitment letter of March 7, 2024, amended three times that month, Domain lent $2.5 million to five numbered Alberta companies with the same sole director and shareholder, 240 among them, and to two individuals, with two other companies signing as covenantors. The loan matured on December 1, 2024. Interest ran at the greater of Royal Bank prime plus 10.80% or 18.00% a year until October 31, 2024, and at the greater of prime plus 16.80% or 24.00% after that. The mortgage, registered April 23, 2024, charges six properties, and on 240's ten titles it ranks second, per the Affidavit of Jeff Burt, Aug. 6, 2026, Ex. "J", paras. 3–7 and Sched. "B"; Ex. "K" (Affidavit of Lisa Ward, July 15, 2026), paras. 7–10.