What separates a financeable development from one that never gets approved?
In this episode of the RMS Real Estate Development Podcast, Curtis Way is joined by Brandon Kot, Managing Partner at Canada ICI, to explore how commercial lenders evaluate real estate projects across Canada.
Drawing on billions of dollars in annual commercial mortgage placements, Brandon provides an insider's perspective on what lenders are really looking for when they assess apartment developments, industrial buildings, retail centres, office projects and land acquisitions.
The discussion breaks down the commercial lending landscape from traditional bank financing and life insurance companies to pension funds, private lenders and mezzanine financing, while explaining how each plays a different role in today's market.
Beyond financing mechanics, Brandon shares why strong cash flow, experienced developers and conservative underwriting continue to be the foundation of successful projects, regardless of market conditions.
In this episode you'll learn:
- How commercial real estate financing actually works
- Understanding the capital stack: debt vs. equity
- Why lenders focus on repayment before anything else
- When higher loan-to-value financing makes sense
- How mezzanine financing differs from traditional lending
- Which property types are easiest and hardest to finance
- Why Alberta remains one of Canada's strongest lending markets
- How lenders assess sponsors versus tenants
- The importance of execution, liquidity and experience
- Common reasons development projects fail
- Why conservative underwriting protects developers
- How interest rates, inflation and capital markets affect commercial lending
- Why surrounding yourself with experienced advisors can dramatically improve your chances of success
Curtis and Brandon also discuss the broader Canadian economy, affordability challenges, and where commercial capital is flowing today. They explain why lenders remain optimistic about Alberta's long-term prospects and why predictable cash flow continues to drive financing decisions across every asset class.
One of the biggest takeaways from the conversation is that financing isn't simply about securing the highest possible loan, it's about demonstrating that your project can successfully execute and repay that debt under realistic market conditions. For developers, preparation, conservative assumptions and the right advisory team can make all the difference.
To learn more about the RMS Group, please visit:
https://rms-group.ca/This series was produced by Road 55 in Edmonton, Alberta – Learn more at:
road55.caWhat is Real Estate Development: The Curtis Way?
Ever looked at a vacant piece of land and wondered how it becomes an apartment building, shopping centre, or thriving commercial property?
Join the team at RMS Group as they pull back the curtain on the world of real estate development. Through conversations with developers, investors, lenders, brokers, lawyers, property managers, and construction professionals, we'll explore the wins, the mistakes, the risks, and the opportunities behind every project.
From proformas and financing to market cycles, approvals, construction and property management, this podcast is designed for aspiring developers, experienced investors, and anyone interested in how great real estate projects get built.
Real stories. Real deals. Real lessons from the people doing the work every day.