According to a new listing on Realtor.ca posted Wednesday, the block of Bank Street between Nepean and Lisgar streets is being marketed for an asking price of $14.5 million.
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A Centretown property containing four heritage buildings that were slated to be demolished and replaced with a controversial mixed-use development is for sale.
According to a new listing on Realtor.ca posted Wednesday, the block of Bank Street between Nepean and Lisgar streets is being marketed for an asking price of $14.5 million.
The half-acre parcel of land at 178 Nepean St. and 211-231 Bank St. is “being sold on an ‘as-is, where-is’ basis under power of sale provisions,” the listing says, adding the site “offers an opportunity to develop a mixed-use community near major downtown Ottawa landmarks.”
Power of sale is a legal process that allows lenders to sell a property to recover outstanding debts when a borrower defaults on a mortgage.
In Ontario, lenders can begin the power of sale process 15 days after a missed payment, and property owners typically have 30 to 40 days to cover any arrears. If the amount owing still hasn’t been paid, the lender has the right to evict occupants and sell the property.
The Bank Street site became the focus of controversy when the company that owned it, 211-231 Bank Street Holdings, sought to evict tenants who lived in rent-controlled apartments in the existing buildings.
About a dozen tenants fought the eviction, but the province’s Landlord and Tenant Tribunal ultimately ordered them to vacate their units last year.
In an email to OBJ Thursday afternoon, Bank Street Holdings spokesperson Sharon Kuzminski said the project is owned “by an independent group of professional investors and stakeholders.” A listing for 211-231 Bank Street Holdings on canadacompanyregistry.com identifies its director as Tamer Abaza of Ottawa.
Kuzminski said the current ownership group “is being supported and represented” by a Toronto-based developer as it navigates “an increasingly challenging and volatile real estate environment.”
Kuzminski said developers face a growing list of hurdles as they try to get projects off the ground, including tighter lending practices, rising construction costs and dampened demand for condos.
She said developers are also grappling with “high development fees and lengthy, costly approval timelines” that further stymie construction in Ottawa.
“As a result, lenders are often compelled to seek repayment or initiate sale processes in order to recoup their investments, particularly in cases involving land or early development,” Kuzminski added.
“In the current climate, most lenders are not prepared to advance additional funds, especially for ground-up construction, given the elevated risks and uncertain timelines associated with project completion.”
She said the Bank Street ownership group is considering a number of options, “including a potential acquisition of the property by existing investors or proceeding with a sale in a market where transactions are limited and pricing remains under pressure.”
Another Ottawa firm, Smart Living Properties, was also involved in the project. But Kuzminski said Thursday the company “has no ownership interest, financial stake, or decision-making authority” in the proposal.
Smart Living “was engaged solely in a consulting capacity to assist in advancing the project through the site plan approval process,” she said, adding the company “has had no involvement with the project for over a year.”
