The Crown Realty Partners CR V LP fund has acquired a portfolio of five small-bay industrial buildings in Ottawa, comprising 205,251 square feet, and plans a series of improvements to add value to the assets.
The portfolio includes 2660-2710 Lancaster Rd., 2750-2772 Lancaster Rd. and 1117-1141 Newmarket St. in the city’s east end. The Lancaster Road properties include three of the buildings and were acquired in partnership with Greater Toronto Area firm Ripple Developments.
The firms did not release financial information about the transaction.
The Ottawa East submarket has a vacancy rate of less than two per cent and is well-suited for a diverse range of businesses due to its immediate proximity to Highway 417 and other major arterial roads that service nearby communities.
The properties offer a mix of unit sizes ranging from 2,500 to 11,900 square feet, allowing flexible layout options for tenants with a mix of drive-in/truck-level shipping facilities available.
Crown plans to add value to the assets through improvements to the individual units on turnover, as well as upgrades to the exterior façades, landscaping and signage.
Crown also intends to make energy-efficiency upgrades by enhancing building HVAC and lighting systems “to ensure the buildings continue to maintain their value proposition in the market,” the announcement states.
Crown selling west Ottawa office complex
Ripple Developments is based in Concord, just east of Toronto, and specializes in small-bay industrial properties. This is Ripple’s first Ottawa acquisition, so Crown will oversee the management of this joint venture.
Crown has repositioned over 20 small-bay industrial/ flex office buildings on behalf of prior funds.
Crown is a significant investor in the Ottawa market, currently with over three million square feet of assets under management.
One of its properties, the three-building Carling Executive Centre, is currently being marketed for sale after Crown acquired the site in 2019 for $56.5 million.
The Carling Executive Centre, which is about 290,000 square feet across the three mid-rise towers, was its first Ottawa investment when it acquired the property from QuadReal.
It has invested several million dollars into upgrades since the acquisition and improved its leasing profile.
Located at 1525, 1545 and 1565 Carling Ave., the 4.16-acre site is on the border of the Carlingwood and Westboro Village neighbourhoods in west Ottawa.
One major attraction for the complex is its location along Phase 2 of Ottawa’s light-rail transit system, which is currently under construction.
Crown Realty Partners, Ripple Developments
Crown is a Toronto-based integrated commercial real estate investment and management firm founded in 2001. It is focused on value-add opportunities across Canada, with 10 million square feet of real assets under management.
CR V LP is Crown’s fifth value-add fund.
Ripple Developments calls itself an opportunistic real estate investment and development company.
Founded in 2018, it focuses on acquiring commercial and urban infill residential properties ranging from low-rise residential to large-scale industrial and open-air shopping centres.
