Avison Young announced the sale of a Montreal office building that will be converted into residential housing, and said it sees other opportunities for conversions in the city.
In a press release Thursday, Avison Young announced the sale of 1434 Sainte-Catherine St. West to 5AM Capital, saying the office building will be used for student housing due to its proximity to Concordia and McGill universities.
“Repurposing this property into a home for students will give it a new life and contribute to the continued revitalization of our downtown,” said Mark Sinnett, the principal and head of Capital Markets at Avison Young.
According to the release, the building has certain features that make it more suited for conversion. This includes its mixed-use and residential zoning, smaller size floor plates and a low occupancy rate.
“Avison Young is closely following the evolution of underutilized office buildings that meet the basic criteria for increasing asset value through adaptive reuse. Thus far, the firm has identified at least 20 potential projects in downtown Montreal,” the press release said.
The announcement comes amid increased interest in converting underutilized office space into residential units. However, experts say there are certain challenges involved in conversion projects.
Mike Williams, a managing partner and head of real estate development at Hazelview Investments, told BNNBloomberg.ca in August 2023 that developers need to consider many factors ahead of a conversion project.
He said office buildings are intended to be used differently, with fewer appliances running throughout the day. He added that other changes often need to be made like altering stair locations and upgrading HVAC systems.
As a result, he said many buildings are not suitable for residential conversions.