Buyers in Limbo as Burnaby Condo Project Collapses and Property Hits Market

Joe Racanelli and his wife thought they’d be enjoying mountain views from their new fifth-floor condo by now. Instead, they’re staring at a construction pit where Burnaby’s Siena at the Heights was supposed to rise — and wondering if they’ll ever see their $170,000 deposit again.

The Siena project, once marketed as a “classic” five-storey development with 38 condos and street-level retail, was supposed to be completed by late 2024. Instead, construction stopped after only part of the underground parking was completed. The property is now in receivership and listed for $16 million.

The Racanellis, retired painting business owners, bought their unit in 2021. Despite reassurances and timeline extensions from the developer, the project never progressed. “We really wanted it to succeed,” said Racanelli. “But now it’s dead in the water.”

In November 2023, Desjardins Group filed to place Siena at the Heights into receivership, citing nearly $30 million in unpaid loans. Deloitte Restructuring Inc. was appointed receiver in February. Lender documents show over $5.3 million in presale deposits held in trust for 31 buyers.

Developer I4 Property Group blamed contractor Kerkhoff Construction for delays and financial issues, alleging difficulties with excavation and unpaid sub-trades. Kerkhoff was fired in September 2023. Efforts to reorganize financing failed, and Deloitte is now managing the sale.

Beyond presale buyers, nearly 60 other creditors are owed millions — including builders and small businesses. One of them, Danita Leon of Chilliwack-based Smoke Signals Flagging, said she’s unlikely to recover the $31,507 she’s owed. “I cried about it but now my tears have dried up,” she said.

Court documents also reveal the site had contamination issues allegedly linked to historic dry-cleaning operations. A civil claim was filed in 2019 but later dropped. It’s unclear if the contamination played a role in the project’s failure.

While Racanelli has been told his deposit is secure under B.C.’s real estate laws, he’s still waiting on refund conditions. “It’s been frustrating and worrying,” he said. “If that money had been in a bank, we’d have made $30,000 in interest by now.”