20 months after residents forced to evacuate, troubled Edmonton condo sells for $5.1M

Yahoo

20-05-2025

A north Edmonton condo evacuated nearly two years ago over fears the building could collapse has been sold.
The long-awaited sale will offer some financial reprieve to previous residents of Castledowns Pointe, which has sat vacant since September 2023.
Harmani, an Alberta-based developer and rental company, purchased the property for $5.1 million with plans to repair the existing structure and rent its 83 units once reconstruction is complete.
When it was first put on the market in mid-2024, it had been listed for just under $17 million.
The deal, approved in Edmonton's Court of King's Bench, closed on April 21.
Condo board president Susan Strebchuk said the sale is a welcome sign of closure for its former residents but added there's still a long road ahead.
"There is relief that it's going to be done, but it's not," Strebchuk said.
The sale proceeds will take months to be distributed, with owners not likely to see anything until October or November, Strebchuk said.
And their share will be a "drop in the bucket" against the mounting costs they've paid for repairs, condo fees and mortgage payments on homes that were no longer habitable, Strebchuk said.
"The damage that's been done to either your financial standing — or even your ability to move on from this — is not going to be recovered through whatever funds you will get," Strebchuk said.
Debts to the condo board will be settled before any proceeds from the sale are distributed to owners, she said.
"There is still lots of work to do," Strebchuk said. "We will all be very relieved when we're done."
The problems with Castledowns Pointe, constructed in 1999 at 12618 152nd Ave., first surfaced in March 2023 after a fire ripped through the fourth floor.
Investigators assessing the damage discovered dangerous structural flaws unrelated to the fire damage. The building does not match the architectural designs on record and does not comply with the building code.
In September 2023, when the extent of the structural issues was made clear in an engineering report, evacuation orders were issued.
Residents were given hours to leave their homes over concerns that the building might collapse.
In January 2024, owners opted to sell and cut their losses rather than attempt to repair the building. The building and land went on the market early last summer with an asking price of $16,950,000.
The court-sanctioned sale has been a long, complicated process.
An unconditional offer of $6.25 million from Cormode and Dickson Construction Ltd. was accepted but faced delays as the Edmonton construction company sought repeated extensions.
Then, a flood in January 2025 caused more than $500,000 in damages, and the deal collapsed altogether.
A clause in the offer contract allowed the company to walk away. With their offer rescinded, the building was placed back on the market.
An offer from Harmani Sale Inc. was accepted by the condo board and approved by the court last month. As part of the deal, some proceeds from the sale will be held back to cover the cost of flood repairs.
Harpreet Singh, co-founder of Harmani Rentals, said the company is eager to start work as soon as city permits are approved. The company will work closely with engineers and city officials to assess how the building's flaws can be fixed.
He expects reconstruction will take at least 18 months before the building will be added to Harmani's portfolio of rental buildings. That timeline could change once crews start ripping out walls and investigating hidden parts of the structure.
"There are certain areas of the building that we want investigated to make sure the structural solution that we're planning with our engineers, and with the City of Edmonton, works," Singh said.
"The key is safety and structure first and then we will go from there."
A previous assessment estimated it would cost more than $7 million to shore up the existing structure.
The Harmani group of companies has previously taken on other problematic properties, including foreclosed buildings and sites shuttered due to health violations, he said.
Even with the added cost and complication, they're eager to "revive the property," Singh said, adding there will be "no shortcuts" on safety and the company will be transparent with the public and future tenants.
If the structural issues are deemed too severe to repair, they will demolish and rebuild, Singh said.
"This is a high-profile situation. There are structural issues and there's safety concerns. Those need to be addressed," he said.
"As a developer, we need to make sure that everybody is safe in the building, that the building is safe. And if it isn't, we're going to knock it down."
Once sale proceeds are distributed, the condo board will dissolve. Strebchuk said there are no plans to pursue a lawsuit for the financial losses suffered by owners.
As Strebchuk reflects on the loss of her home, there is a pang of anger and disbelief.
Strebchuk said Alberta needs to better protect condo owners, ensure inspectors are more tightly regulated, and that builders responsible for structural flaws can be held liable.
She said the case should have brought about change but, instead, she feels owners have been forgotten.
"We all wish that this never happens to anybody else," she said. "But, through all of this, we haven't seen anything that has changed that would protect owners.
"And that's a little bit of a bitter pill for us to swallow."