JEMB Realty Corporation and BUSAC Real Estate have put Place Dupuis, a large office and retail property in the east end of downtown Montreal, on the market via CBRE.

The property at 800-850 and 888 De Maisonneuve Blvd. E. is comprised of 564,582 square feet of office space across two distinct properties as well as 118,020 square feet of necessity-based retail space.

Scott Speirs, vice-chairman and practice lead for CBRE Montreal’s national investment team, told RENX the vendors are looking to take advantage of the city’s resurgent office sector by selling now.

“They have been waiting until the market improved, and liquidity for office has certainly strengthened in the past six months,” he said.

Place Dupuis was built in 1973, with an additional phase completed in 1981. The property has undergone significant renovations in recent years through a modernization program and capital improvements.

The complex has in-place financing at a 4.07 per cent interest rate until August 2037, providing immediate cash flow stability and minimizing upfront financing hurdles.

Location is a big attraction

One of the property’s biggest selling points is its direct underground connectivity to the Berri-UQAM metro station, the only one connecting three of Montreal’s four metro lines, as well as its proximity to the city’s central interprovincial bus terminal. 

Place Dupuis also offers proximity to the Ville-Marie expressway and views of Mont-Royal, downtown and the St. Lawrence River.

The area surrounding Place Dupuis is set to experience growth and development in the coming years, with multiple residential and commercial projects planned or underway. More than 2,000 residential units are to be built within a kilometre of the complex, including two large-scale projects by Mondev. 

Place Dupuis is in close proximity to the University of Montreal Hospital and the University of Quebec in Montreal’s main campus.

Émilie-Gamelin Place, directly adjacent to the property, is a gathering point that has undergone significant changes in recent years and forms part of Montreal’s Quartier des Spectacles. It hosts multiple events, and discussions to further enhance it are underway.

Office and retail tenants

Place Dupuis’ office buildings are seven and 22 storeys and are 86 per cent occupied by tenants involved in education, government, medical and technology uses that have a 6.3-year weighted average lease term.

Tenants include the City of Montreal, McGill University Health Centre, University of Montreal, Warner Bros. Pictures and CEGEP of Old Montreal.

Place Dupuis’ streetfront retail component is 97 per cent leased to tenants including its grocery store anchor IGA, as well as Jean Coutu, SAQ, National Bank, Couche-Tard, Bureau en Gros, a medical clinic and quick-service restaurants.

National and regional covenants occupy 77 per cent of the retail gross leasable area and contribute 74 per cent of retail revenue.

“You've got exceptionally strong office tenants in this property, but you also have exceptionally strong necessity-based retail, which serves as a tremendous amenity for the building and also a significant draw to the building,” Speirs noted.

Speirs expects interest in Place Dupuis from Canadian institutional investors and “the deep pool of private capital that exists in Quebec.” The bid date deadline is 5 p.m. EST on Wednesday, April 8.

Place Dupuis vendors

New York City-based and family-run JEMB was founded in 1990 as a real estate development, investment and management firm. 

In addition to a portfolio of six office, residential, mixed-use and hotel properties as well as one multiresidential development project in the United States, JEMB also owns two other Montreal properties: 

• a 24-storey building with 240,000 square feet of office space and 70,000 square feet of retail space at 1200 McGill College;
• and a three-storey, 10,000-square-foot-plus retail space occupied by Foot Locker at 900 Sainte-Catherine St. W.

BUSAC is part of JEMB and was formed in 1998. Its head office employees in the 800 De Maisonneuve Blvd. E. building provide administrative support and asset management assistance to the parent company.

Historic Apple Store building also for sale

CBRE is also representing another New York City-based vendor, ASG Equities, to sell 1251-1263 Sainte-Catherine St. W. The bidding process has closed for the three-storey, 35,834-square-foot heritage property which was built in 1896 and underwent upgrades last year.

The building is in a high-profile retail area at De La Montagne Street and is fully occupied by a flagship Apple Store under a lease with 14 years remaining. Apple has two renewal options in its 15-year lease.

“It’s a world-class trophy asset with an exceptional credit tenant,” Speirs said. “The building is located on the best retail corner in the city.

ASG’s only other Canadian property is a mixed-use office and luxury retail location at 100 Bloor St. W. in Toronto with tenants including Hermes, Barry’s and Van Cleef & Arpels.