February and March 2001
Produced by Juteau Johnson Comba Inc.
Editor John Comba
The appraisal industry in the Ottawa area continues to be very busy. As most of you are aware, there have been numerous announcements of layoffs since the middle of February by many of the local high tech companies which have resulted in approximately 600,000 square feet of office space becoming available. Most of this space is located in new buildings in the west end of the City. This should result in less construction this year and a decline in rental rates from the $22 per square foot levels that were done at the end of last year for west end office buildings. However, overall the office market continues to perform well with vacancy levels still below balance market conditions. In addition, the federal government continues to absorb office space in the region. As such, we are expecting a more stable environment over the next year where neither the tenant nor the landlord has the upper hand.
As it is already April, I have decided to summarize the sales for both January and February in this newsletter and skip the news. I will attempt to get back on schedule with the April newsletter by the end of the month and will include real estate related news in that letter.
Now onto the long overdue summary of sales that have occurred so far this year.
SALES
A two-storey walk-up OFFICE building was sold by Johnson Controls ULC to 891668 Ontario Inc. for $700,000 or $70/sq.ft.
Shenkman Corporation has sold the two properties they purchased last year when they were vacant. They leased both buildings to JDS Uniphase for five year terms. The properties are located at 1162 Cyrville Road, 2020 Walkley Road and 2935 Conroy Road and have a total leasable area of some 246,085 square feet. The purchase price was $16,620,000 or $68/sq.ft. The purchaser was Great West Life Assurance Co.
Not to be outdone, Canderel Management Inc. also sold the building at 365 March Road, Kanata that they purchased in November of 1999 for $7,750,000. The purchaser, 1430736 Ontario Inc. paid $11,100,000 or $157/sq.ft. of leasable area. The building is 100% leased to Cisco Systems for a eight-year term.
A two-storey retail/office building at 394-404 Bank Street was sold by Stuart Sadler Ltd. to Teresa & Domenicantonio Muccitto for $618,000.
228-230 Elgin Street, a three-storey retail/office building, was sold by Peter Dawson to M & F Falsetto and Sons Ltd. for $825,000.
Brewers Retail sold their RETAIL store and warehouse building at 1860 Bank Street for $1,800,000 to 356123 Ontario Ltd. The building is approximately 34,000 square feet in size.
A 20% interest in the South Keys Shopping Centre was sold by 802700 Ontario Inc. to South Keys Shopping Centres Ltd. for $13,680,000.
Two nine-storey APARTMENT buildings at 2025 & 2035 Othello Street were sold by 874058 Ontario Inc. to Othello Apartments Ltd. for $19,500,000 or $51,862/unit.
A three-storey, 10-unit apartment building at 710 Melbourne Avenue was sold by Ray Thomas to 1457449 Ontario Inc. for $535,000 or $53,500/unit.
Gino, Francesco, Severino & Ermindo Buffone sold a 99 unit apartment building at 1825 Russell Road to 1436961 Ontario Inc. for $3,950,000 or $39,899/unit.
A two and a half storey 18-unit building at 120-140 Tabor Street in the former City of Vanier was sold by Saverio & Teresa Cesario to 1437128 Ontario Inc. for $820,000 or $45,556/unit.
John Saikaly, in trust sold a 16-unit apartment building at 425 Elgin Street to 1278725 Ontario Inc. for $810,000 or $50,625/unit.
A very attractive 220 unit at 1330 Richmond Road was sold by a group of investors (398762 Ontario Limited) to Lincoln Park Towers Inc. for $14,200,000 or $64,545/unit.
Minto Developments also sold a 40 unit townhouse development in the west end of the city at 2155-2173 Elmira Drive to 2155-2173 Elmira Ltd. for $2,400,000 or $60,000/unit.
A 30-unit building at 700 Coronation Avenue was sold by Vera Glube, in trust to Domeron Inc. for $1,475,000 or $49,167/unit.
A 25,000 square foot INDUSTRIAL building at 3189 Swansea Crescent was sold by Balon Entreprises Ltd. to Cummins Ontario Inc. for $650,000 or $26/sq.ft. of building area. The building was purchased by the tenant.
A 14,680 square foot industrial building at 247-249 Westbrook Road in West Carleton was sold by 907525 Ontario Inc. to CU Soon Holdings Ltd. for $850,000 or $58/sq.ft.
An industrial building at 1550 Laperriere Avenue was sold by DRE Investments Ltd. to 1443738 Ontario Inc. for $1,100,000 or $34/sq.ft. of building area.
DM & M Realty Ltd sold an industrial building to 1455637 Ontario Inc. and 1455638 Ontario Inc. for $1,300,000. The property is located at 2448 Huntley Road in the west end of the City. The purchaser was the tenant in the building.
Although Nortel is laying off people they are continuing to assemble LAND in the area. Maybe, at these price levels we should be buying Nortel shares.
Donato & Erminia Catizzone sold a 16.47 acre site on Strandherd Road to Nortel for $3,489,600 or $211,876/acre.
Nortel also purchased a 23.79 acre site in the same area as the previous sale from Ormie Parks, Nyall Parks, Glenn Parks, Claire Know, Roma Baird, Robert Parks and Jean Parks for $2,955,150 or $124,218/acre.
The third parcel Nortel purchased in this area was from Devon Estates Ltd. The parcel is 7.19 acres in size and Nortel paid $1,400,000 or $194,715/acre for the property.
Nortel also sold a 2.3 acre site in the Terry Fox Business Park to 500 Palladium Portfolio Inc. adjacent to the new fibre optics plant that they constructed then sold to the same purchaser. The site was sold for $678,395 or $294,954/acre.
A 6.454 acre site, also in the Terry Fox Business Park, was sold by 764703 Ontario Inc. to Westeinde (FNP) Inc. for $1,339,200 or $207,514/acre. Westeinde is constructing a new 75,000 sq.ft. building for Volex on this site.
Trans-Northern Pipelines, in trust sold a 10.932 acre site to Uniform Developments Ltd. for $545,000 or $49,895/acre. The site is located along Hunt Club Road in the Merivale Industrial area.
Balys Holding Ltd. transferred a 3.4 acre site to March Road Ltd. Partnership for $1,500,000 or $441,176/acre. This site was purchased in 1997 for $382,000.
Richbeck Holdings Ltd. sold a 3.22 acre site at the corner of Robertson and Fitzgerald Roads to Westeinde (FGR) Inc. for $1,100,000 or $341,615/acre.
Cardinal Creek Developments Inc. assembled three sites in the east end of the City along Trim Road. Audrey Rivington sold a 27.79 acre site for $1,609,872 or $57,930/acre; Glen Edwards sold a 27.81 acre site for $1,639,854 or $58,966/acre and Stanley & Hilda Edwards sold a 24.307 acre site for $1,494,991 or $61,504/acre.
Kanata Research Park Corporation continues to assemble land in the area of the Kanata North Business Park. The most recent purchase was for a 93.4 acre site located on the north side of Klondike Road. The purchase price was $8,615,680 or $92,235/acre.
A 2.91 acre site on Aird Place in Kanata was purchased by Omni Health Care Ltd. from 977664 Ontario Inc. for $820,000 or $281,787/acre.
The National Capital Commission sold a 23.29 acre site to 938966 Ontario Inc. for $7,327,000 or $314,598/acre. The purchaser has sold 11.7 acres to 1427583 Ontario Inc. for $2,125,396 or $181,658/acre. A second parcel of some 10.4 acres was also sold to 3641406 Canada Inc. (Rona Inc.) for $5,016,569 or $482,362/acre.
A 167.16 acre site in the south end of the City was sold by the Ministry of Transportation for $792,300 or $4,740/acre.
It appears that the City of Ottawa is raising money by selling off some of their real estate assets to pay for the cost of amalgamation. They sold three parcels in the first two months of the year.
1) A 14 acre site on Cyrville Road was purchased by St. Joseph Printing Ltd. for $1,604,250 or $114,589/acre.
2) A 3.163 acre side on Rockledge Road was sold 520 Rockledge Road Inc. for $575,000 or $181,796/acre.
3) Lastly, Brewers Retail Inc. purchased a six acre site on Swansea Crescent for $750,000 or $125,000/acre.
Finally, Lithwick Corp. in trust sold a 19.372 acre site with frontage on Ogilvie Road and Cyrville Road in the east end of the City for $3,700,000 or $190,993. The purchaser was H & R Capital Developments Inc.