The companies behind the Zibi development say they’re looking to join forces with another real estate firm to build amenities that could include a hotel and convention centre in Gatineau.
Toronto-based Dream Unlimited and Dream Impact Trust – which are leading construction of the multibillion-dollar, 34-acre community straddling both sides of the Ottawa River just west of downtown – recently put 3.27 acres of land earmarked for the Zibi project up for sale.
In a news release announcing the move last week, the companies said the property, which is located near Gatineau’s Place du Portage complex and overlooks Parliament Hill and the Ottawa River, has room for up to one million square feet of development. They said they envision the site, dubbed the Capital View Lands, being developed with five separate buildings.
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In an interview with OBJ, Dream Unlimited senior vice-president of development Justin Robitaille said the move will allow a different company to bring “other interesting ideas” to the table as it works with his firm and Dream Impact Trust to accelerate development of the property.
Robitaille suggested a number of potential uses for the land, including seniors’ housing as well as more commercial-oriented facilities.
“We know there’s a need for convention centre space in the Gatineau region,” he said, adding a hotel could also “make a lot of sense” if there’s demand for it.
“So there’s sort of ideas like that that aren’t necessarily part of our core business, where we would like to be able to invite others that are in that space to be able to partner on developing and fulfilling that master-plan vision for Zibi,” Robitaille explained.
The announcement that the Capital View Lands were on the market came just a few days after the Ottawa Senators struck an agreement in principle to buy 10 acres of land just across the river at LeBreton Flats from the National Capital Commission.
While there are still significant hurdles to clear before any work can begin, the Senators say they hope to start construction of a new NHL arena at LeBreton Flats within the next couple of years.
Robitaille called the team’s potential move to Ottawa’s core a “game-changer” for the city, adding it could create a jolt of momentum for future development at Zibi.
“Especially in the next five, six years, if we see shovels in the ground (at LeBreton), maybe that sparks additional demand for housing, and we obviously think Zibi can be a big contributor to meeting some of that demand,” he said.
“We think it’ll spark a lot of investment in and around LeBreton. We think that there are some significant ripple-on effects that we think we can certainly benefit from.”
Mixed-use community
In the meantime, work goes on at the multi-phased, mixed-use community, which is expected to include about four million square feet of commercial and residential space once it is complete.
Robitaille said about one million square feet of office and residential space has already been constructed at Zibi, which is projected to eventually house 5,000 residents and employ 6,000 people. He estimated it will take “probably another 12 to 15 years, depending on market conditions” before the project is fully built out.
Dream’s current plans call for about 2,500 rental units at Zibi, at least 20 per cent of which are targeted for affordable housing, Robitaille said. About 600 units have been completed so far, and construction is expected to begin next month on another building with 244 units on the Ottawa side of the river, he added.
While Robitaille said falling interest rates are making a “big difference” in lowering financing costs, he said bringing on a development partner for the Capital View Lands will help Dream Unlimited and Dream Impact Trust pay down infrastructure-related debt the firms incurred while getting Zibi off the ground.
And although the bulk of the roughly 350,000 square feet of office space that’s already been built at Zibi was pre-leased to the federal government, he conceded it’s “been a challenge” to fill the rest as potential occupiers reassess their real estate requirements in a post-pandemic world.
“We’re starting to see a little bit more interest now in light of some of the recent announcements with the Senators, but I think that, in general, space requirements for a lot of office tenants have really shrunk in the last couple of years in the National Capital Region,” Robitaille said.
Landlords at many other marquee downtown office buildings are offering “a lot of incentives and very minimal rent in a lot of cases, so that’s tough to compete against,” he added.
Another 60,000 square feet of office space is expected to be ready for occupancy next month in a recently completed building on the Ottawa side of the project.
“We’re working through some deals right now to fill up some of that space, but we won’t have that filled up in the next six to 12 months,” Robitaille said.
Meanwhile, work continues at Dream’s other big-ticket development project in Ottawa, a 608-unit rental building at LeBreton Flats near the Pimisi LRT station and the new central library that’s expected to be completed in 2026.
Robitaille said Dream, which is partnering with the Multifaith Housing Initiative to provide 251 affordable housing units at the site, started construction of the building in April and is aiming to have it ready for occupancy in 2027.
“That’s a big project for us,” he said. “I think the Albert (Street) corridor will be quite active for many years to come, and we’re excited to play a big role in that.”
