Ottawa-based Colonnade BridgePort and an institutional investment partner have acquired a 93,381-square-foot mid-rise office building with four acres of development land in the city’s east end.
1900-2000 City Park Place was previously owned by Vancouver-headquartered QuadReal. The five-storey class-A building is located just off the city’s central Hwy. 417 corridor, in the area of Blair and Ogilvie Roads to the east of the downtown.
Financial details were not released.
It’s the first acquisition for Colonnade BridgePort’s private equity real estate fund.
“Despite the challenging conditions for new development across the country, we believe they are short-term in nature and that the fundamentals will improve throughout 2023 and beyond,” said Colonnade BridgePort CEO Hugh Gorman in the announcement.
“This is especially the case in Ottawa, where we have a strong local economy, positive net migration, and a significant shortage of housing.”
Residential plans for vacant land
That housing shortage will be the focus of Colonnade BridgePort’s plans for the vacant land.
A company spokesperson told RENX it is planning residential development for the site, which is a short walk from the Gloucester Centre shopping mall and Blair Station along the city’s light rail transit network, and is adjacent to a park.
“The team will be working through master-planning the site over the coming months, with the intent to design a mix of housing typologies,” the spokesperson wrote in an email exchange.
“The city needs more housing – especially in amenity-rich, established communities, in close proximity to transit,” Gorman noted in the announcement. “The City Park acquisition checks all these boxes and we feel we will be able to enrich and enhance the existing community by making it stronger, more vibrant and sustainable for future generations.”
The future development potential adds to Colonnade BridgePort’s existing $1-billion transit-oriented development pipeline, which it says “will have a meaningful impact on the sustainable growth of the City of Ottawa.”
The City Park Place office tower adds to Colonnade BridgePort’s 9.2 million-square-foot property management portfolio.
The building currently has five spaces available for lease, comprising about 45,000 square feet and ranging from 3,687 square feet up to 17,741 square feet.
“This is an exceptional suburban office, with a variety of available suites for tenants, that is situated on the light rail system and surrounded by great amenities," said Brent Arseneau, vice-president of leasing, in the announcement.
"We are looking forward to showing tenants the possibilities this building has to offer.”
Ottawa office sector
Colonnade BridgePort will be attempting to lease the property in an office market that continues to face challenges.
The overall vacancy rate in the region was 11.1 per cent at the end of 2022, according to CBRE’s most recent report, although suburban vacancy was slightly lower at 10.2 per cent.
The report does suggest that vacancy rate could rise in 2023, however, as the federal government plans to continue shedding space and amid the ongoing uncertainty of both the economy and back-to-office protocols.
The building has a BOMA Best certification and its floor plates average about 19,000 square feet.
Colonnade BridgePort is a full-service real estate company, offering property management and leasing services, acquisition, development, investment management and asset management for both commercial and residential properties.
The firm is headquartered in Ottawa, with offices in Mississauga and Toronto.