Latest news with #SusanStrebchuk
Yahoo
20-05-2025
- Business
- Yahoo
20 months after residents forced to evacuate, troubled Edmonton condo sells for $5.1M
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."
Global News
15-05-2025
- Business
- Global News
Unsafe Castledowns Pointe condo owners say they're out thousands of dollars
A north Edmonton condo building that's been empty since September 2023 because of serious structural problems has now been sold. But, the individual condo owners say they will still be short tens of thousands of dollars after the sale. In March 2023, a fire damaged part of the Castledowns Pointe condo building (12618 152 Ave.) in the Baranow neighbourhood in the Castle Downs area. 1:57 Fears of collapse prompt plea for residents to get out of Castle Downs condo building Engineers from Read Jones Christoffersen Ltd. (RJC) were hired to inspect part of the property damaged by a fire on March 12, 2023. Story continues below advertisement During their review in May of that year, the structural engineers from RJC discovered the actual construction of the fire-damaged portion of the building was not the same as the engineered drawings on file, 'and that the as-built conditions were under-designed to carry the structural load of the building,' according to a Sept. 1, 2023 letter to residents. Framing issues identified during a structural engineer assessment of the Castledowns Pointe condo building (12618 152 Ave.) in August 2023. Credit: Read Jones Christoffersen Ltd. In September of that year, everyone living in the building was forced to evacuate, after an engineering report said the building could fail. Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy 'Our engineer advised us at some point a floor could've collapsed and people would've died,' said Susan Strebchuk, the condo board chair for Castledowns Pointe. The building has been fenced off and partially covered by a tarp for almost two years now. 1:40 Castledowns Pointe residents forced to pay thousands after special assessment No one's been allowed back, including Lisa Brown, who owns one of the building's 83 units. Story continues below advertisement 'I mean, it's just a complete disaster,' Brown said. Now, condo owners say there's hope they could get some money back soon. In April, Harmani Rentals bought the property for $5.1 million. They plan to turn it into rental units. 'Because there was a flood, fire and structural, those three combinations make it a little more challenging and it might just be better to knock it down. We're still trying to identify that,' Harmani Rentals' co-founder Harpreet Singh said. 1:55 No return timeline given to Castledowns Pointe owners at emergency meeting The condo board said owners should see money from the sale by October, two years after they were evacuated. What they will get isn't expected to cover their investment. 'We have a number of owners who still have mortgages they have to pay out, so this is going to seem like pennies on the dollar,' Strebchuk said. Story continues below advertisement Brown is in that category. She figures in a best-case scenario, she's still short tens of thousands of dollars. 'At the end of the day, I'll still owe $93,000, which I definitely don't have so I will have to go into bankruptcy,' Brown said. It's a situation Brown hopes she can eventually put behind her, now that the building is sold. 'The losses financially for everyone are just something you can never, ever, ever imagine,' Brown said. 'Just start to collect everything and brush yourself and start moving forward again. Or trying to, anyway.' — With files from Karen Bartko, Global News
CBC
13-05-2025
- Business
- CBC
20 months after residents forced to evacuate, troubled Edmonton condo sells for $5.1M
Social Sharing 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. Seeking a buyer 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. 'Safety and structure' 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.
