Toronto Pinnacle Lakeside | 158m | 49s | Pinnacle | Hariri Pontarini

SeanSanjabi said:
I was speaking to a lawyer yesterday. They mentioned that our case seemed like a clear case of fraud! The builders probably got a loan from a bank based on the money they collected from the investors and now are gone!!! They mentioned that it is possible that very soon the bank will move in and take over the property and after all fines, interests, etc. there will be nothing left for the investors...I really don't want to believe the lawyer
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This is not the case, and the deposits from the purchasers are kept in trust with lawyers. Pinnacle will be building out the project. Likely keep the purchasers in place, if not the deposits will be returned with interest.
 
AHK said:
Two comments. First, while I am not an expert in the banking procedures associated with construction loans, my understanding is that when a builder obtains a financing commitment from a bank, at least from one of the majors, the bank does not advance the loan amount of the funds to the developer. As the invoices for the construction are received, and the builder writes cheques on the construction loan account, the cheques are, or should be, reviewed by the bank to ensure they are reasonable and proper for the nature of the work being done. If a developer tries to pay themselves or some other third party an unreasonable amount from the approved construction loan, the cheque would be returned. Otherwise the system could be so easily abused for fraud. Procedures may vary - but if a developer gets construction financing, it should not mean that they are simply able to walk away with all or a substantial portion of the funds.

Secondly, as a new developer taking over, it will take some time to get up to speed on a project which is already underway.. Budgets are reviewed in great detail, new bids will have to be solicited for the construction, prepared and submitted, evaluated, negotiated and contracted. For a project of this size, scale and complexity, not an overnight process.

So definitely not surprised that it is taking this amount of time to start to see physical activity at the site.
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Folks,

For anyone who may have read the original version of this post above (#598) - it has been edited and revised as shown in this Reply. Unfortunately, when originally writing the comment had a very major seniors moment, and inexplicably confused Pinnacle with Concord Adex. Two different firms, while both out of Vancouver and both active in the downtown area, they are very different companies. Some of the material in the earlier version of the comment pertained specifically to Concord Adex, and definitely not to Pinnacle.

My apologies to all.
 
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Er, new'ish...as that would of been dated around Pinnacle taking over here, I'm guessing. Although, I am not sure the point of posting this, as this really doesn't address the recent concerns being brought up here.
 
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skywalker said:
Is this a new ad or an old one?
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That's not an ad, well, other than for the commercial real estate broker who sold the Greenland project to Pinnacle. No doubt all purchasers of suites in the project will be getting letters from Pinnacle in the coming weeks as to their intentions for the project.

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Great to hear everyone's input so far. I hope Pinnacle starts communicating their strategy with the investors sooner than later. I have emailed and called Pinnacle many time during the last few months but haven't got any reply yet. I believe this must be Pinnacle's first priority to call for a meeting with investors or announcing the plan forward as soon as possible.
 
SeanSanjabi said:
Great to hear everyone's input so far. I hope Pinnacle starts communicating their strategy with the investors sooner than later. I have emailed and called Pinnacle many time during the last few months but haven't got any reply yet. I believe this must be Pinnacle's first priority to call for a meeting with investors or announcing the plan forward as soon as possible.
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You really should not describe yourself as an 'investor' - you are, I assume, the PURCHASER of a residential condo unit (which you then hope to rent out as an investment.)
 
thanks for the vocab correction...yes I'm a purchaser...nevertheless, hopefully Pinnacle starts communicating with the purchasers here rather than putting everybody in the dark
 
Given the market condition as well based on other projects sold to other developers, purchasers should expect a letter saying how much more they going to have to pay for the unit as well how far down the road before they can get access to it.

At the same tine, Pinnacle may change the design of the project since nothing has been built yet to something buyers may not want to live in and no effect on investors who will be renting it out in the first place.

Time will tell what Pinnacle will do to this site
 
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