Martello was retained in the early 1990s to oversee a portfolio of shopping centres located in western Canada that was owned by an American investor who was the patriarch of a large family. He came to Martello for local market knowledge and management skill, but the advice that Martello would provide in the far future was crucial for the long term success of the family’s holdings. After a number of years working on the portfolio the patriarch passed away, leaving the portfolio and a variety of unresolved Canadian taxation issues to his wife. Martello provided asset and property management services to the matriarch on all aspects of the family’s Canadian real estate holdings for many years until she passed away in 2008. The death of the family matriarch triggered considerable American tax liabilities when the shares of the holding company were transferred to the beneficiaries of the estate. This new tax liability when combined with the previously outstanding Canadian liabilities would have forced the sale of the portfolio.
By working with various taxation experts, lawyers and accountants, Martello was able to recommend a refinancing strategy to the family that would preserve the portfolio, while at the same time dealing with the looming tax liabilities. Martello provided comprehensive services to refinance the properties, including tendering appraisals and negotiating with lenders to secure the best possible financing to settle the liabilities with the CRA and IRS.
Through successful execution of the strategy, all properties in the portfolio were retained for the beneficiaries of the estate. Today, the mortgages are slowing being repaid, and the family continually benefits from the ongoing cash flow to support their lifestyles. In the end, by retaining Martello more than twenty years ago, the patriarch of the family was ensuring that his children and grandchildren would benefit from his success for decades to come.
American Investor and Extended Family
Multi-National Tax Liabilities
Complex refinancing Portfolio Preserved Tax liabilities resolved
This 79,500 square foot office building at the corner of Hastings and Howe was acquired by a private family trust in the mid 1990s. At the time, the downtown…
Martello was hired by a multi-national syndicate in 2002 to create a unique asset strategy for the repositioning and ongoing management of Cedar Hills…