Seven years after it purchased three properties in Montreal’s Griffintown neighbourhood, Mondev plans to begin construction in September on Phase 1 of a three-phased, 750-unit multifamily development at the site.

The property was originally zoned as commercial by the city and Mondev’s initial plan to build a residential development instead was rejected. But now, construction is slated to begin at 291 Young St. for a 15-storey, 115,000-square-foot building with 155 units at an estimated cost of $61 million.

It is to be followed in early 2026 by construction of 324 Peel St. As it now stands, that will be a 15-storey, 270,000-square-foot rental tower with 312 units, at a cost of about $135 million. 

Construction of each of the two projects should take about 30 months.

No date has been set for construction of the third building at 280 Young – currently the existing auto dealership’s service centre, which will have about 280 units. “We have no plan on starting that anytime soon,” says Jordan Owen, director and partner at Mondev. “It could be in five years.”

The sites are all on the same block and are currently home to a Volkswagen dealership and showroom (324 Peel), service centre (280 Young) and parking lot.

Mondev's efforts to rezone the property

Although the city of Montreal originally wanted Mondev to build an office building at 324 Peel, it was open to making a zoning change, says Owen.

“But then we went to the public consultation, since it was a change in zoning and we needed the approval of the neighbours. Unfortunately, it was blocked at that time” by area residents.

However, the city eventually amended the zoning on its own for the buildings on the sites, paving the way for a residential project. Mondev has now received a demolition permit for 324 Peel, conditional on the developer going ahead with its proposed residential plan.

324 Peel will include about 15,000 square feet of commercial space. Ten per cent of the units will be family-sized or three bedrooms. 

While Mondev founder David Owen (Jordan Owen’s father) began condo development in the early days of the firm and continued doing so for the next 15 to 20 years, Mondev’s buildings have been 90 per cent rental projects for the past 15 years. The developer has about 10 active construction sites on the island of Montreal.

Currently, “the condo market is tough,” Owen says, as interest rates are high, prices are high, and salaries haven’t increased enough to match rising construction costs. “People are looking for homes to live in, not necessarily condos to invest in.”

Other residential projects underway by Mondev

Mondev recently completed a 312-unit rental development on Fullum St., near the Jacques Cartier Bridge, similar in size to the planned 324 Peel development.

It is currently negotiating on an offer to purchase on the Ilot Voyageur Sud development on Berri St. and de Maisonneuve Blvd. E. in downtown Montreal, on what would be Mondev’s biggest project. Announced in January, it would have over 1,000 units: 500 market rate rentals by Mondev; 430 affordable and 100 social units by non-profit housing provider Utile. 

Owen says negotiations involve the transit commission, the STM, “and that’s a major undertaking. It’s going to take three years just to figure out what we’re doing with that.”

The project will likely not be completed until the 2030s, he says.

Recent apartment property divestments

Last November, Mondev sold three purpose-built rental properties constructed between 2016 and 2020 - with a combined 355 units - to CAPREIT for $144 million. The properties are at 1244 de Bullion St., 1255 St. Dominique St. and 1050 Rene Levesque Blvd. E.

“There are many reasons that pushed us to sell, and we’re not gun-shy to sell if it’s a good price,” Owen says.

In this case, the market was very difficult, the price was good, Mondev was looking to raise capital, and some partners wanted to cash out, he says.

Mondev is currently marketing for sale an 11-storey, 125-unit apartment building at 1200 Mackay St. downtown and Ava, a 10-storey rental development on Place de la Savane in the Côte des Neiges neighbourhood.

“The reality is the money is made in the development and the actual production and once you have it, it’s very slow growth,” Owen says. “If you want to build wealth, we keep the assets, but if you want to generate IRR (internal rate of return), you sell the assets.”

Ideally, Mondev’s strategy for the past 15 years has been to construct high-quality properties and then hold on to its rental properties.

“If we’re hoping to retain these assets, we’re going to take better care of them in terms of the construction," Owen said. "We’re going to make sure it’s high-quality materials. We’re going to make sure that the management is high quality.

"It is in everyone’s best interests for the developer to retain ownership.”