Immo Alliances acquires downtown office building for conversion to student housing
Immo Alliances and affiliated private investors have purchased a five-storey downtown building for $11.15 million from Gestion SIDEV to convert to student housing.
The 44,511-square-foot building located at 1434 Sainte-Catherine Street West sits on a primary retail artery near Concordia and McGill universities. Two Metro stations, the Réseau express métropolitain automated light rail system and three bus routes are easily accessible from the site.
A strategic acquisition
"This is the first $10-million building we are purchasing downtown, but it definitely sets the tone," according to Immo Alliances owner Denis Gallico. He noted that the firm is "already in the process of buying two more."
The building's attributes that make it suitable for conversion include mixed-use and residential zoning, smaller floor plates, U-shaped layouts, low occupancy, natural lighting, dual elevators, high ceilings, and indoor parking.
Conversion into 60 apartments
The 92-year-old building in Ville-Marie Borough's Museum District underwent its last major renovation in 2000. The new owners plan to renovate and create 60 rental apartments. Avison Young's Mark Sinnett, Sebastian Gatti, Guillaume Monast and MC Laflamme-Sanders served as advisors and agents for the sale.
Gallico expects to obtain a building permit within six months and has set a 12-month construction timeline to complete the project floor by floor.
Addressing the student housing crisis
"There is a high demand for residential units close to universities, with hundreds of thousands of students arriving each year and struggling to find places to live and study," he stated. The firm plans to create quiet spaces with amenities including a gym, possibly a vegetable garden, and weekly yoga lessons.
"In the past two years, we have focused on converting office spaces into residential units to address the rental crisis," Gallico explained. Converting existing office spaces is more affordable and allows creative flexibility on each project.
Original article published by RENx.
