Montreal-based Tidan Hospitality & Real Estate Group is spending approximately $50 million to acquire 1130 Sherbrooke St. W., a 17-storey, 230,768-square-foot, class-A office building in downtown Montreal from the family which developed it in the 1970s.

Built in 1976, the building is currently 71 per cent leased to tenants that include Public Works Canada and clean technology company Enerkem.

It was developed by Joseph Kracauer, who created a real estate portfolio under the name JK Investments. Kracauer died in 2023 and his family put the portfolio up for sale last year. 

The sale of 1130 Sherbrooke is expected to close by the end of the month said Scott Speirs, vice-chairman and practice lead for CBRE Montreal’s national investment team, the brokerage that handled the property sale.

“1130 Sherbrooke is strategically located in the heart of the Golden Square Mile,” Speirs said. “Tidan own several assets in the area, including the Mount Stephen Hotel, and therefore recognize the prestige and potential of this prime Sherbrooke St. address."

1130 Sherbrooke

According to CBRE, the building has been well maintained, with a robust capital expenditure program. 1130 Sherbrooke has 219,297 square feet of office and 11,471 square feet of retail space.

1130 Sherbrooke’s top five tenants carry a weighted average lease term of nearly six years.

CBRE says the building represents an exceptional value creation opportunity in the short-term through creative repositioning strategies, and in the medium to long term through a potential residential or hotel conversion.

Located near Stanley St., 1130 Sherbrooke is a five-minute walk from the Peel metro station and a 10-minute walk from the McGill REM light-rail station. 

The city of Montreal’s property assessment roll values 1130 Sherbrooke at $38.4 million, down from its 2021 assessment of $45.5 million.

Tidan's history and portfolio

Co-founded by Jack Sofer and Mike Yuval in 1970, Tidan Hospitality & Real Estate Group owns more than 40 revenue-producing properties and 12 hotels.

Tidan owns apartments in Canada and the U.S. and the company’s industrial, commercial and retail real estate portfolio totals approximately 2.75 million square feet. 

On the hospitality front, Tidan also owns the Montreal Marriott Château Champlain and Château Versailles, among others.

Tidan’s other downtown Montreal office holdings include the Edifice Tidan, which houses its head office at Sherbrooke St. W. and Robert-Bourassa Blvd., 2125 Crescent and 1234 de la Montagne streets.

Office revival underway

The sale is the most recent in a string of office transactions both in Montreal and across Canada as momentum has returned to the sector after several down years. He said the office market in Montreal “has really turned a corner and obviously that’s a theme you’re seeing across the country.”

The sale of 1130 Sherbrooke provides proof positive that investors have gone beyond looking only for best-in-class spaces in Montreal, Speirs said.

“The impact now is more broad. It’s not just the very best spaces that are outperforming; the market as a whole is now improving.” Investors are taking notes and “are well aware that the window of opportunity to buy assets at the low of the market is closing quickly."

Speirs said CBRE is seeing both traditional and user investors who are looking to acquire low-priced class-B and -C buildings and use vacancies for their own occupancy.

Strong Q4 in Montreal

According to CBRE’s Q4 2025 Canada Office Figures, Montreal had a strong finish to 2025, with downtown vacancy dropping to 17.8 per cent in the quarter. The downtown area saw 228,000 square feet of positive absorption of office space throughout the year. 

On the class-A front, Speirs says the sale of Cadillac Fairview’s 26-storey, 495,000-square-foot Tour Deloitte at 1190 Avenue des Canadiens-de-Montreal is imminent but was unable to provide further details. Tour Deloitte, completed in 2015, is certified LEED Platinum CS and has anchor tenants Deloitte and TMX Group.