Everest Group Facing Foreclosure On 24-Storey Centra Project In Surrey, Owes $44M

Key Takeaways

• Foreclosure triggered by $44.2M default balance
• Construction stopped September 2024, liens $15.2M
• First‑ranking mortgage held by Desjardins Financial
• BC Financial Services fined developers $44K
• Retail investors exposed via Parvis Invest offering

Summary

Everest Group’s 24‑storey Centra condo tower in Surrey entered foreclosure after defaulting on a $27.8 million loan with 14% interest. The lender, Domain Mortgage/CAPSTONE, reports $44.2 million owed, including $15.2 million in liens and unpaid property taxes. Construction halted in September 2024, and the second‑ranking mortgage follows a first‑ranking loan held by Desjardins. The property, valued at $26.7 million by BC Assessment, will likely be sold through a court‑ordered process.

Pulse Analysis

The Centra development, a 24‑storey, 167‑unit condo slated for 13862 101 Avenue in Surrey, has become a cautionary tale of over‑leveraged real‑estate projects. Everest Group secured a $27.8 million loan from Domain Mortgage Corp., backed by Capstone’s mortgage pool, with a steep 14% annual interest rate. Failure to meet interest payments, file required reports, and settle property taxes led the lender to file a foreclosure petition in December 2025, citing a total outstanding amount of $44.17 million. With construction halted in September 2024 and $15.2 million in liens—including $11.5 million owed to general contractor Metro‑Can— the project’s financial health deteriorated rapidly, prompting a court‑ordered sale that may exceed the BC Assessment value of $26.7 million.

The fallout extends beyond the developer to lenders, secondary mortgage holders, and individual investors. Desjardins Financial, holding the senior mortgage, now faces potential losses if the sale proceeds fall short of covering both tiers of debt. Meanwhile, retail investors who participated through Vancouver‑based Parvis Invest were promised a 17.5% annual return on minimum $20,000 commitments, yet the offering’s risk profile was labeled “Moderate‑High” and the total equity raised remains unclear. This scenario highlights the perils of private real‑estate syndications, where limited disclosure can leave investors vulnerable when projects default.

Regulators are also under pressure to tighten oversight. The BC Financial Services Authority previously fined Centra’s ownership entities $44,000 for delayed registration of presale agreements, a breach that contributed to the project's credibility issues. As the Surrey condo market grapples with rising construction costs and tightening credit, the Centra case may prompt lenders to reassess loan structures, enforce stricter covenants, and demand greater transparency from developers. For industry observers, the episode serves as a reminder that high‑interest financing, coupled with inadequate compliance, can quickly erode even seemingly sold‑out projects, reshaping risk assessments across Canada’s residential development sector.