RioCan REIT (REI.UN-T) chief executive officer Ed Sonshine calls Ottawa’s Gloucester City Centre “a perfect storm” for a real estate investor and developer. In a good way. So after this week’s announcement RioCan has partnered with Halifax-based Killam Apartment Real Estate Investment Trust (KMP.UN-T) to develop the 7.1-acre site in the city’s east end, the two are moving forward at full speed. “These guys bring a lot of expertise to the table,” Sonshine said of Killam. “They own a lot in Ottawa, they know the market.” Tempbridge Inc Provides Private Mortgage services in OttawaThis is the first time RioCan and Killam have joined forces, but it’s unlikely to be the last. Sonshine said the firms are in talks to work together on another project, but that deal is still in its “early days.”
The Gloucester City Centre project has many factors working in its favour. It’s right next to RioCan’s existing Silver City Gloucester shopping and entertainment centre and Ottawa’s Light Rail Transit (LRT) Blair Station on the Confederation Line East, so future residents have easy access to many retail, entertainment and transit options. The LRT is scheduled to open in 2018.
Private Mortgage Ottawa: Just as importantly, there is no existing neighbourhood to disrupt. As a result, the project was easily approved by the city.
Prime site on transit line
“If anything, the city was encouraging us,” Sonshine said. He believes part of the reason is the proximity to the new transit line . . . which needs riders. Plenty of riders.
“When you get into the weeds of these transit systems a bit, there is also a big operating loss in these systems if you don’t get passengers.”
So when developers come knocking these days, Ottawa City Council is listening with open ears.
The development will maximize energy-efficiency with the incorporation of a geothermal energy system for the building’s heating and cooling. Sonshine said RioCan and Killam both want the project to minimize its environmental impact.
“The technology works so they tell me, but it does present some engineering difficulties for us,” he said. “But, I am sure we will conquer them.
“It will actually be a bit of an experiment, though that is quite a thing to say about a $150-170-million investment.”
Private Mortgage Ottawa: For smaller developers and investors who do not have the means or contacts to obtain conventional financing, this is a time for Private Mortgage Lenders in Ottawa to step up and fill the niche. One such Lender is TempBridge Inc out of Montreal. They have expanded into the Ottawa area and are ready to provide private mortgages to qualified individuals and companies in the Ottawa area. With flexible terms and competitive rates they could be just what is needed at this time. Some private lenders are inflexible when it comes to terms, or take an inordinate amount of time for approval. If you require the services of a private lender do your research. But check out TempBridge for it’s competitiveness.