- What Kadus Capital and Y Street Capital entered into a joint venture on a mixed-use, midrise complex in Ottawa
- Why The partners want to bring more rental housing supply to the market to alleviate the housing crisis
- What next Kadus is planning to raise the balance of the equity needed for the project
Kadus Capital and Y Street Capital have entered into a joint venture to develop a mixed-use, midrise apartment complex in one of Ottawa’s most desirable neighborhoods, Green Street News can reveal.
The project, at 255 Richmond Road in the Westboro neighbourhood, is expected to be worth $84m once stabilised.
The nine-storey purpose-built-rental building will have 131 residential units, three ground-floor retail spaces and two levels of underground parking. The parking stalls will be equipped with car-charging capacity. Above-ground gross floor area is 129,000 sq ft.
Of the 131 units, nine will be studios, 36 will have two bedrooms and the remainder will be a mix of one-bedroom units and one-bedroom units with a den.
The property was acquired for redevelopment in 2022 and zoning is in place to permit the intended use.
Kadus has brought $5m in equity to the project and Y Street has raised almost $7m to date. Kadus is planning to raise the balance of the equity needed for the project before construction can kick off.
The opportunity is also open to accredited investors. Kadus expects one or two big-ticket investors to take the opportunity with the remainder being smaller-scale investors. Kadus has already received a strong response from investors who want to participate.
Kadus Capital chief executive Justin George said the project checks off several of the company’s priorities, namely:
- Bringing more rental housing supply to the market to alleviate the housing crisis
- A compressed timeline with completion expected in 2028
- Midsize scale
- A dependable partner in Y Street
- Building in a prime location
Kadus is looking to replicate this strategy in Ottawa and other secondary markets in Ontario outside the Greater Toronto Area.
“The key for us is to make a positive impact by partnering with best-in-class firms that are aligned with our mission to make the world a better place,” George said.
Kadus will jointly run and manage the project with Y Street.
Kadus Group is a development firm specializing in the execution of complex real estate and construction projects. Y Street Capital is a privately owned company specializing in residential and commercial multifamily real estate developments in Canada and the United States.
