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Groupe HD and financial partner Fondaction have acquired the 72,000-square-foot site of a former Volkswagen automotive dealership in LaSalle, Que., where they plan to build a 155-unit purpose-built rental apartment development.
It is the latest in a series of such acquisitions for planned developments, both in the Greater Montreal area and other major Canadian cities.
The LaSalle property at 1855 Dollard Ave., near the intersection of Newman Boulevard, was acquired for $5.5 million from a private seller in an off-market deal. The dealership has moved to a new location and its former building will be demolished.
“The borough of LaSalle offers an urban living environment just minutes from downtown Montreal,” Groupe HD marketing and communications director Isabelle Drolet wrote in an email interview with RENX. “The location of the site is strategically advantageous as it is near a major commercial artery in LaSalle.
“Future residents will benefit from nearby services such as grocery stores, pharmacies, restaurants, public transportation and a variety of other shops. The presence of a hospital and numerous educational institutions also adds to the list of benefits associated with the site's location.”
1855 Dollard Ave. development’s elements
The five-storey apartment building will feature two levels of underground parking that will incorporate electric vehicle charging stations, bicycle storage and a pet-cleaning area. Common areas will include a large lobby, a collaborative space, a lounge, a workout room, a rooftop terrace with a swimming pool and a landscaped courtyard.
The building will have a mix of studio, one-, two- and three-bedroom units, most with balconies. Sixteen of the units will be offered at 20 to 30 per cent below market rates and be classified as affordable.
“This initiative aims to create a significant impact by addressing the pressing need for new, affordable, quality housing in the LaSalle community,” wrote Drolet.
The project is looking to deliver energy performance that surpasses the National Energy Code of Canada for Buildings standard by 40 per cent. It’s targeting a LEED certification through initiatives including:
- the reduction of heat islands;
- greening and adding vegetation to more than 25 per cent of the site;
- reduced water consumption measures;
- using sustainable construction materials and techniques;
- provision of the electric vehicle charging stations;
- and optimizing energy performance.
Converting automobile dealerships
The LaSalle site isn’t the only automobile dealership proposed to be converted to multi-residential use by HD Groupe or others.
HD Groupe, with financial partners Kastello Immobilier and Société Financière Bourgie, acquired the site of the Fortier Ford dealership at 7000 Louis-H.-La Fontaine Blvd. in the Montreal borough of Anjou earlier this year.
It’s proposing to develop almost 1,000 residential units on that site, which is less than 250 metres from the terminus of the Montreal Metro's Blue Line extension that’s under construction.
Leader Lane Developments recently acquired 1156 The Queensway in Etobicoke, Ont. (Toronto), a site which housed a Mercedes-Benz dealership. It plans to build a nine-storey purpose-built rental apartment and five stacked townhouses, creating from 213 to 220 units, on the property.
An affiliate of Dilawri, Automotive Properties Real Estate Investment Trust’s largest shareholder, is in the process of acquiring the six-acre Markham Honda dealership site in Markham, Ont. from the REIT for $54 million. It’s considered a prime future multi-family redevelopment site.
“It's not the vocation of the business that makes a lot attractive, but rather its location,” Drolet wrote when asked what makes automobile dealerships good candidates for conversion to residential uses.
“Each opportunity is evaluated based on various criteria to determine if the site has interesting real estate potential. Location, zoning and density potential are among the elements studied during the site evaluation.”
The LaSalle project’s partners
The LaSalle site has received municipal approval for residential zoning and construction is scheduled to start in January.
NEUF Architect(e)s is the architect and BC2 will oversee landscape design for the development, which is anticipated to cost $55 million.
Montreal-based Groupe HD specializes in residential real estate investment, development, construction and management. The company is involved in developments totalling nearly 4,000 units, divided between condominiums and purpose-built rental apartments, with a value exceeding $1.75 billion.
“Construction Praxis, a division of Groupe HD, will oversee the completion and execution of the work,” Drolet wrote. “With the strategic integration of Construction Praxis, we can offer our partners integrated and efficient services and, most importantly, meticulous financial and operational oversight.”
Quebec City-based Fondaction is an investment fund created in 1996 as an initiative of Confédération des syndicats nationaux, a trade union organization with nearly 2,000 member unions representing about 300,000 people.
It managed more than $3.77 billion in net assets as of May 31.
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