495 Richmond Road: a receiver for a partially demolished conversion

The loan that bought 495 Richmond Road closed in the autumn of 2019: a commitment of up to $30,947,000 from Addenda Capital Inc., a Montreal investment and asset-management firm, priced at the Government of Canada yield plus 2.00% and set at 3.44%, amortized over twenty-five years, against a seven-storey Class A office building in Ottawa with approximately 106,195 square feet of rentable space. Addenda registered a first mortgage on title on November 27, 2019, took a general security agreement over the personal property on the site, and took assignments of the rents, the leases and the insurance — including a specific assignment of the building's tenant lease, with notice to the tenant that it would pay Addenda when directed to, per the Affidavit of Ardi Pradana, Sept. 2, 2026, paras. 7–10, 22, 25, 29. When the lender's inspector walked through on July 16, 2026, what remained inside, principally, was the concrete structure and the building envelope, per the Affidavit of Ardi Pradana, Sept. 2, 2026, paras. 38–39.

On September 17, 2026, Justice Dietrich of the Ontario Superior Court of Justice (Commercial List) appointed Goldhar & Associates Ltd. receiver and manager, without security, of all the property of Dov (495 Richmond) Limited — an Ontario corporation incorporated on June 6, 2019, with a registered head office on Dufferin Street in Toronto, and the registered owner of the building — under s. 243(1) of the BIA and s. 101 of the Courts of Justice Act. The application was heard by Zoom, and the debtor, which appeared, did not oppose it, per the Receivership Order, Sept. 17, 2026, pp. 1–2 and the Endorsement of Dietrich J., Sept. 17, 2026, paras. 1, 3.

Four extensions and a $10,000 fee

The loan ran an initial five-year term from December 7, 2019, with monthly blended payments of principal and interest due on the seventh of each month and the balance due on maturity in December 2024. Maturity then moved three times — to March 7, 2025, to September 7, 2025, and to March 7, 2026 — and on that last date the outstanding principal was $25,636,479.64, per the Affidavit of Ardi Pradana, Sept. 2, 2026, paras. 9, 15–16.

Ten days after that maturity passed, Addenda agreed to extend again, to September 7, 2026, to give the borrower time to refinance. The extension was conditional on the mortgage being up to date and in good standing, on a $10,000 extension fee, and on delivery of financial statements for certain guarantors and related entities. Through the extension period the loan went interest-only at the Royal Bank of Canada prime rate plus 2.00%, compounded monthly, with a floor of 6.45% a year; and if the loan was not repaid by September 7, 2026 and no written renewal offer had been accepted, it would renew automatically for three months at prime plus 5.00%, per the Affidavit of Ardi Pradana, Sept. 2, 2026, paras. 17–21.

The interest payments due in June, July and August of 2026 were not made. On June 12, Addenda delivered a demand to the borrower and to eleven guarantors, together with notices of intention to enforce security under s. 244(1) of the BIA, requiring payment of $25,798,415.18 plus legal costs, per diem interest of $4,593.20 and late interest, by June 22. Nothing was paid, per the Affidavit of Ardi Pradana, Sept. 2, 2026, paras. 32–37.

The guarantees are separate and limited, each joint and several, irrevocable, absolute and unconditional, with liability arising on demand and a cap on each guarantor: Dov Capital Corporation at $5,584,090.91, Adarsan Holdings Limited at $2,905,342.08, Shutam Canada Inc. at $1,544,358.01, The Friedman Family Foundation at $1,452,671.04, and down through Rolesco Management Limited, Dazco Family Holdings ULC and Sea Brim Investments Limited to four guarantors capped at $363,167.76 apiece, per the Affidavit of Ardi Pradana, Sept. 2, 2026, para. 31. The notice of application reserves Addenda's right to take further enforcement action against them, per the Notice of Application, Aug. 26, 2026, ground 23.

What the inspection found

After the June and July defaults, Addenda retained Brentwood Restructuring Services to inspect the property, report on its condition, assess a proposed redevelopment, and assess the viability of a settlement the borrower had put forward. Brentwood attended on July 16, 2026, per the Affidavit of Ardi Pradana, Sept. 2, 2026, para. 38.

What the affidavit reports of that visit is a building mid-conversion. Demolition and alteration work was under way inside, including work by JBPA Developments Inc.; in or around October 2025 the borrower had begun re-tooling the property from commercial office space to residential rental units; the interior "had been substantially altered and demolished, leaving principally only the concrete structure and building envelope intact." The property manager told Brentwood that a fire and/or elevator-system alarm issue had existed for an extended period and had not been addressed, and that office equipment and leasehold items had either been discarded during the demolition or moved to the property manager's head office. Brentwood also reported that the contractual value of JBPA's work was uncertain and that material amounts were unpaid to it, and that it had been advised other trades — maintenance and landscaping trades, and the structural engineer — had not been regularly paid, per the Affidavit of Ardi Pradana, Sept. 2, 2026, paras. 39(a)–(d). Addenda did not consent to the demolition or the construction, the affidavit swears, and it is concerned that the unpaid contractors and trades may register construction liens, and that personal property covered by its general security agreement may have been removed, disposed of or relocated, per the Affidavit of Ardi Pradana, Sept. 2, 2026, paras. 40, 42–43.

The commercial general liability policy, renewed for the twelve months from December 31, 2025, "appears to have been issued on the basis that the Real Property was tenanted," while Addenda understands the building had been vacant since the fall of 2025 and under interior demolition since that October. Addenda asked for confirmation that the insurer or the broker had been told of the vacancy and the construction, and that coverage matched the building's actual condition and use; the affidavit says no satisfactory evidence of either has come back, and that the loan documents require replacement-cost coverage, equipment-breakdown and business-interruption insurance, and commercial general liability cover of not less than $5 million per occurrence, per the Affidavit of Ardi Pradana, Sept. 2, 2026, paras. 44–48. Nor, on the same account, had Addenda received satisfactory confirmation that municipal realty taxes were current, or the financial, operating and project information it had asked for — including on CMHC underwriting and the borrower's redevelopment and financing plan — which left it unable to determine whether there was a viable alternative to enforcement, per the Affidavit of Ardi Pradana, Sept. 2, 2026, paras. 49, 51–52.

On value, the affidavit reports what the borrower told the lender: "The Debtor has advised Addenda that the Real Property's value has materially declined and that the value of the supplemental collateral has also deteriorated. Based on these representations, the Debtor has indicated that Addenda is unlikely to recover the full amount of its Loan under any potential realization scenario," per the Affidavit of Ardi Pradana, Sept. 2, 2026, para. 50. Addenda's searches put it alone on the registers: one PPSA registration against the borrower, in Addenda's own favour, current to August 12, 2026; no active writs of execution, orders or certificates of lien as of August 19; no Tax Court of Canada records, per the Affidavit of Ardi Pradana, Sept. 2, 2026, paras. 53–55.