Morguard Corporation announced it will be selling its 181 Queen Street office property in Ottawa to Public Services and Procurement Canada (PSPC) for $125.3 million.
The 11-storey downtown building measures approximately 275,000 square feet with a three-storey parking garage below grade, according to engineering firm R.J. McKee Engineering Ltd.
The site holds the CBC Ottawa Production Centre, with the building designed to house the broadcaster on the first four floors with PSPC (formerly Public Works and Government Services) leasing the upper seven floors for the Information Services Directorate of the House of Commons.
Part of the proceeds from the sale will go to repay a first mortgage at $57.7 million, a release says. The transaction was carried out at approximately $500 per square foot.
Morguard says the sale was initiated by PSPC’s decision to purchase the property as outlined in a lease agreement.
The company’s other properties on Queen Street include the 305,210-square-foot 131 Queen St. and the 182,795-square-foot Heritage Place on 155 Queen St.
Morguard’s Ottawa presence
The Mississauga-headquartered real estate and property management company says it holds 3.3 million square feet of office properties in downtown Ottawa.
Morguard was bullish on the Ottawa office market in January 2023, seeing its economy growing and noticing increased office market investments in the capital city of Canada.
Its recent office acquisition in Ottawa is a 50 per cent interest in 215 Slater St. made in December 2022. The 109,208-square-foot building was taken over by Montreal-based Canderel.
In January 2024, it sold its Holiday Inn Express hotel in Ottawa alongside 13 other hotels in Ontario as part of a $410-million transaction.
Morguard said the move aligned with its “commitment to optimize its real estate portfolio” by focusing on its core real estate investments such as office, industrial, retail, and multi-suite residential properties.
As of Dec. 31, 2023, Morguard held $14.2 billion in property ownership, with $3 billion in office properties across 12.6 million square feet.