LRT ‘totally changing’ Ottawa's east-end office landscape, broker says

Terminal Avenue building
BentallGreenOak has purchased an office building at 395 Terminal Ave. for $97.5 million. Photo courtesy Cushman & Wakefield

The Canadian branch of a global real estate investment company has purchased a government-occupied office tower at the Ottawa Train Yards in a deal worth $97.5 million.

BentallGreekOak’s Prime Canadian Property Fund bought the 240,000-square-foot office building at 395 Terminal Ave. from 2237800 Ontario Ltd., a local company, earlier this spring. The Canada Revenue Agency occupies the entire building, which opened about seven years ago. The federal agency has eight years remaining on its lease as well as an additional five-year option.

Cushman & Wakefield Ottawa managing director Nathan Smith, who helped broker the deal, said the previous owner had received several offers for the property, which is located near the Train Yard shopping complex and a couple of hundred metres from the Tremblay LRT station.

Smith said the building was at the top of BentallGreenOak’s list of properties it was targeting in Ottawa’s suburbs due to its proximity to light rail, the Via Rail terminal and other transit-oriented development projects. 

The east-end neighbourhood has recently become a hotbed of proposed new developments. 

Last month, Colonnade BridgePort said it’s partnering with investment firm Fiera Real Estate to acquire five acres of land at nearby 25 Pickering Pl., just east of the Via Rail terminal, with the aim of turning the current industrial site into a “mixed-use, high-density community hub” that will include rental apartment highrises, retail space, parkland and possibly a hotel.

Meanwhile, the federal government said last month it’s seeking a private-sector partner to develop part of its 26-acre property farther east at 599 Tremblay Rd., across from the St. Laurent Shopping Centre. Current plans call for a 1.6-million-square-foot office complex and a mixed-use development with residential units, parks and shops.

“All of the stuff that’s happening in that area you could argue is a direct link to the LRT,” Smith said. “That totally changed the landscape in the east end from an office standpoint.”