Brasswater Inc. has acquired a three-building, 290,000-sq.-ft. office portfolio in Ottawa from Crown Realty Partners. Crown announced the closing of the sale in a statement released this morning.

The properties are located at 1525, 1545 and 1565 Carling Ave. and mark Brasswater's entry into the Ottawa market with a strategically located portfolio along the Carling Avenue Corridor.

According to the announcement, Crown will continue to provide property management and will work with Brasswater on leasing, ensuring operational continuity for tenants and supporting the next phase of ownership.

“We are excited to acquire a premier urban asset that aligns with our long-term investment strategy and focus on high-quality real estate,” Ian Quint, founder and president of Brasswater, said in the announcement.

“The property benefits from strong fundamentals, an exceptional location, and a strong tenancy profile. Retaining Crown as property manager allows us to leverage their deep market expertise and longstanding relationships as we continue to grow our presence in Ottawa.”

Toronto-based Crown Realty Partners acquired the complex in 2019 for $56.5 million from QuadReal Property Group. It was Crown's first acquisition in the Ottawa area.

Improvements made to the portfolio

Crown said in the announcement the portfolio benefitted from a value-add strategy during its ownership, with more than $2.3 million invested in capital improvements. Enhancements included upgraded common areas, enhanced tenant amenities and the introduction of Crown’s tenant engagement and wellness programming.

Portfolio occupancy increased from 75 per cent to 85 per cent and annual NOI increased 65 per cent over the hold period, "despite the challenging leasing and economic environment," the company said.

“This transaction reflects the strength of Crown’s integrated platform and our hands-on approach to real estate,” Scott Watson, managing partner of Crown Realty Partners, said in the announcement. “Through targeted capital investment, active leasing, and a continued focus on tenant experience, we successfully enhanced the quality and performance of the portfolio. We are excited to work with Brasswater and continue supporting the asset with our Real Estate Services platform.”

Crown managing partner Emily Hanna added: “This sale is an important example of the liquidity our value-add strategy can create, even in a constrained capital markets environment. 

"By focusing on well-located assets where we can drive performance through leasing, operations and targeted reinvestment, we continue to demonstrate the power of the value-add model when it comes to generating market-beating returns for our investors.”

Marcus & Millichap’s IPA division, in collaboration with Avison Young, represented the vendor in the transaction.

RENX has requested further comment. We will update this article with additional information if it becomes available. 

About Brasswater and Crown Realty Partners

Brasswater is a privately held real estate investment, development and operating platform with a diversified portfolio across industrial, retail and office assets in Canada and the U.S. The firm has more than $3 billion in AUM with a portfolio of over 12 million square feet across more than 100 properties. The company, founded in 2014, was formerly known as Groupe Quint.

Crown Realty Partners is an integrated CRE investment and management firm with a strong focus on value-add opportunities throughout Canada. The company has over 12 million square feet of real assets under management.