Whether a project has stalled and capital is required to keep it going, or has fallen behind schedule or out of budget and assistance is required to getting it back on track, Canderel experts can tailor solutions that can help save any project. We guide clients through investment management, project and development, property management, sustainability consulting, and leasing and marketing. Through the Corporate Knight Initiative, we offer peace of mind for our clients, and the results speak for themselves.
Last year, Canderel collaborated with a national real estate investor to restructure a project that eventually became a success — it serves as an example of the solutions we offer at Canderel.
A Real Estate Project in Need of Help
In 2019, a large national real estate investor approached Canderel looking for development assistance on a residential condo project. The investor had significant concerns, being that the project was already delayed and over-budget, resulting in a backlog of other service issues.
Canderel took this project in hand and brought the specialized skills needed to turn this situation around, get the budget back on track and restore damaged relationships.
What Canderel Brought to the Project
Our experienced team was brought in to revive a struggling project that had tremendous potential but needed further guidance from an experienced developer. We took the time to understand the client’s needs and goals, figure out the lapses in the schedule and analyze every scenario to come up with the best possible solutions.
From helping with the accounting and budgeting to rebuilding relationships, Canderel not only provided our core services, but we helped identify deeper issues and found the solutions to resolve them.
Restoring the Project Budget
When the investor first came to us with this project, one of the most significant problems was a runaway budget. The project was 20% over budget and faced delays both in finishing construction and delivering the units. Investors saw unexpected cost increases, which left them dissatisfied.
To resolve these issues, Canderel requested a monthly cost control update from the general contractor. By reinstating the transparency in the budget, we were able to prevent further issues and solve additional problems down the line.
Condo deliveries were scheduled to begin in October 2019, however, when the investor came to Canderel, construction wasn’t yet complete. Since construction delays not only slow production, they also have serious knock-on effects for the entire project, we needed to act quickly.
In no time, Canderel’s Accounting and Financial Services team found an issue with payments and worked to rectify the issue and get the project going again. Canderel’s Construction team also worked with the general contractor daily to create a schedule designed to speed up the delivery date.
Resolving Legal Issues
Issues with the budget and construction delays can quickly become legal problems that require a deft hand to solve. To help our client, Canderel’s Legal team sifted through the existing demands and fixed them all one by one.
We also sifted through every contract signed by the previous developer. We found that some of the contracts had not been fully leveraged and that some of the paid charges should have been covered by consultants.
Naturally, by the time a service problem becomes a legal issue, relationships suffer. To begin mending these relationships, Canderel ensured that each buyer received compensation for the issues caused by those initial delays. We improved communications by holding bi-weekly partner meetings, documenting the decision-making, and updating the proforma every one to two months.
Canderel was pleased to report that the initiatives taken to rescue this project proved to be effective in ensuring its success. Through Canderel’s Corporate Knight Initiative, many other services are available to help clients and investors in times of need.
Contact us to find out how the Corporate Knight Initiative can help.