Timbercreek Financial has placed the renovated Stephen Avenue Place 40-storey office tower in downtown Calgary under receivership.

The property is owned by affiliates of Slate Canadian Real Estate Opportunity Fund LP, which is controlled by Slate Asset Management. Alberta Court of King’s Bench approved Timbercreek’s request as the company seeks to recover missed payments on a $139-million mortgage balance.

That amount reflects the full value of the first-ranking mortgage, which is syndicated on a pari-passu basis among Timbercreek, which holds the mortgage through an affiliate, and two other institutional syndication partners, the company said. Timbercreek’s gross exposure, after accounting for syndicated portions, was $15 million, or 10.8% of the total loan, representing 1.3% of its net mortgage portfolio of $1.1 billion.

The debt is classified as a stage 3 mortgage within the company’s consolidated financial statements. Timbercreek said it sought the court’s appointment of MNP as the property’s receiver and manager “as the next step in the path to realization” following the termination of a forbearance period and in order to protect the interests of all of the asset’s stakeholders.

“While we do not typically comment on individual loans, we felt it was important to disclose our net exposure in this situation,” said Blair Tamblyn, CEO of Timbercreek. “Our team has originated more than $18 billion in commercial real estate debt since launching our lending platform in 2007 and actively managed a sizable portfolio through multiple cycles.

“We are experienced in navigating these kinds of situations to preserve our investors’ capital, and that is our primary focus with this asset.”

The Stephen Avenue Place loan is one of the few investments remaining in Timbercreek’s portfolio that commenced before the Bank of Canada’s interest-rate hike cycle, he added.

Based in Toronto, Timbercreek is a leading non-bank commercial real estate lender that provides shorter-duration, structured financing solutions to the industry.

Pictured: Stephen Avenue Place office tower in downtown Calgary.