Spanish Monarch: four bids for 34 unfinished suites on Whyte Avenue

The Spanish Monarch is a 1969 apartment block of 34 suites on Whyte Avenue at 98 Street, in Edmonton's Ritchie neighbourhood. When Colliers put it on the market in April, its brochure told buyers the building was "currently 100% vacant and offered for sale under receivership," that the previous owner had finished "full window replacement, new exterior siding, and interior suite demolition," and that the suites were "already brought back to the studs," per the brochure filed with the First Report of the Receiver, July 6, 2026, App. D.

The owner was 2597427 Alberta Ltd., incorporated in March 2024 and, in the words of its lender's managing partner, "a special purpose entity, incorporated for the purposes of purchasing and developing a three-storey apartment rental building," per the Affidavit of Chris Enns, Mar. 4, 2026, paras. 1, 4 and Ex. B. The lender was Spire Pacific Capital Corporation. Legally the building is a condominium held whole, 34 units under one plan with all 10,000 shares in the common property. Spire's commitment letter of January 7, 2025 approved a $4,125,000 first mortgage loan whose proceeds would "be used to purchase the Property," per the Affidavit of Chris Enns, Mar. 4, 2026, Ex. C, ss. A.1, A.5–A.6. Its sources and uses set that loan and $1,160,000 of borrower equity against a purchase price of $4,998,000, an $82,500 lender fee, a $41,250 broker fee and a $123,750 interest reserve. Interest ran at the greater of 12.00% and RBC prime plus 6.55% for the first twelve months of a 13-month term, and 20% a year after that, with Mujtaba Syed and Ali Hassan as joint and several guarantors, per the Affidavit of Chris Enns, Mar. 4, 2026, Ex. C, ss. A.4, A.7, A.9, A.12, A.14–A.15.

The account of how the project stopped is the lender's. Hassan, Enns swore, "is involved in a residential renovation business, and, until recently, was overseeing the renovation of the Project." Construction had ceased "due to non-payment of the construction costs, by the Borrower and Syed," Hassan had filed a construction lien against the title for $1,107,750, and the company and Syed "have ceased responding to the Lender and, to the Lender's knowledge, to Hassan," per the Affidavit of Chris Enns, Mar. 4, 2026, paras. 5–7, 31. Spire's bench brief names the lien claimant as ARH Developments Inc. and says Hassan "owns and operates ARH, a company that is involved in the renovation business, including the renovation of the Project," per the Bench Brief of Spire Pacific Capital Corporation, Mar. 12, 2026, paras. 3, 8. Spire's counsel had delivered a demand and a notice of intention to enforce security under s. 244 of the Bankruptcy and Insolvency Act on February 12, 2026. By March 4 the debt stood at $4,208,217.63 plus accruing interest and costs, per the Affidavit of Chris Enns, Mar. 4, 2026, paras. 9, 28.

On March 11, Enns went through the building with a Spire partner and a senior vice-president of Avison Young; Hassan and his mortgage broker let them in. None of the 34 units had been completely renovated. Most needed flooring, all needed fixtures, finishes including paint and wall repairs were still to do, and every unit needed appliances, "none of which are present in the units or otherwise at the Project." The elevators did not appear to be functional, and "there are no units at the Project that are ready for occupation," per the Supplemental Affidavit of Chris Enns, Mar. 12, 2026, paras. 6–8. One unit "appears to be occupied, but it is unclear who is occupying the unit," per the Supplemental Affidavit of Chris Enns, Mar. 12, 2026, para. 10.

The application had been returnable March 6, and Justice Feasby adjourned it a week. In the interval Spire narrowed it: the first affidavit asked for a receiver over all of the company's property, the supplemental one over the lands and the property used with them, per the Supplemental Affidavit of Chris Enns, Mar. 12, 2026, paras. 2, 4–5 and the Affidavit of Chris Enns, Mar. 4, 2026, para. 2. On March 13, Justice C.J. Feasby, sitting in Calgary, appointed KSV Restructuring Inc. receiver and manager of that narrower estate, with a Receiver's Charge of up to $500,000 as a first charge on the property and authority to borrow up to $500,000 under a charge ranking behind it, per the Receivership Order, Mar. 13, 2026, paras. 2, 19, 22. The company owns and develops other real properties in Alberta, the receiver later reported, and these proceedings "pertain solely to the Property," per the First Report of the Receiver, July 6, 2026, s. 2.0, para. 1.

By July 31 the building belonged to ARH Homes Inc. Justice J. Gill approved the sale on July 13, the receiver certified on July 31 that it had closed, and the price was filed under seal, per the Approval and Vesting Order, July 13, 2026, paras. 2, 16 and the Receiver's Closing Certificate, July 31, 2026.

A fixed fee if ARH or Spire won

Spire is, in the receiver's words, "the Debtor's principal secured creditor," per the First Report of the Receiver, July 6, 2026, s. 1.0, para. 3. Its claim was approximately $4,605,562 at June 30, 2026, with interest and costs still accruing, secured by a first mortgage registered for $5,156,250 and guaranteed by Syed and Hassan. The receiver's counsel, DLA Piper (Canada) LLP, gave an opinion on July 5 that the security was valid and enforceable, per the First Report of the Receiver, July 6, 2026, s. 2.1.1, paras. 3–5, 7.

ARH Developments had registered two builders' liens against the lands, on February 10 and March 11, 2026, for $1,107,750 and $356,412. It sent the receiver's counsel documentation supporting them on June 24 and June 30, and as of July 6 the receiver "has not yet concluded on the validity of the Builders Liens," per the First Report of the Receiver, July 6, 2026, s. 2.1.2, para. 1. Among the other creditors, the company owed the Canada Revenue Agency approximately $1,090 in GST and owed approximately $103,529 in property taxes, penalties and interest to the City of Edmonton. The receiver said its list came from limited records and was incomplete: "Despite repeated requests, the Receiver has not received a comprehensive creditor listing from Mr. Syed," per the First Report of the Receiver, July 6, 2026, s. 2.1.3, paras. 1–2.

In late March, ARH Homes' counsel told the receiver that its client was interested in bidding for the property. When the receiver signed Colliers Macaulay Nicolls Inc. as listing broker on April 15, it negotiated a fixed work fee payable if the winning bid came from "ARH," a term covering ARH Homes, ARH Developments "or any of their respective shareholders, affiliates, or subsidiaries," and a separate work fee if Spire bought by credit bid. Any other buyer would cost a listing fee set as a percentage of the price, per the First Report of the Receiver, July 6, 2026, s. 3.1, paras. 1–3 and n. 4. The amounts are in the unredacted listing agreement, which the court sealed until further order, per the Approval and Vesting Order, July 13, 2026, paras. 14–15.

"Any right to redeem the mortgage has been extinguished"

Colliers launched the process on April 15, sending its teaser to 30 commercial real estate agents and more than 5,000 targeted prospects. Bidders who signed a non-disclosure agreement got a data room holding the receiver's template agreement, and final bids, an agreement of purchase and sale with a blackline of proposed changes, were due at 5:00 p.m. MT on May 15, per the First Report of the Receiver, July 6, 2026, s. 3.2, paras. 1–2. The property was offered "without a formal asking price," per the Colliers brochure at First Report of the Receiver, July 6, 2026, App. D.