- What Mercer Group is selling a historic mixed-use building in Old Montréal
- Why The property has retail and short-term rental units in a prime location
- What next Avison Young has the marketing assignment
Mercer Group is floating a landmark greystone property in Old Montréal for $12m, Green Street News can reveal.
Avison Young has the marketing assignment for the 11,700 sq ft building at 101 Rue Saint-Paul Ouest and 404-406 Rue Saint-Sulpice. The asking price translates to a capitalization rate of 6%.
Built in 1870 and renovated in 2017, the property has 3,900 sq ft of retail space across the basement and ground floor, with short-term rental units occupying the four storeys above. The building’s historic architecture was maintained during renovations.
The property, on a 2,300 sq ft corner lot, has 80 ft of frontage on Rue Saint-Sulpice and 30 ft on Rue Saint-Paul.
Ground floor and basement retail tenants include Restaurant Le Mignon and Bar Le Negroni Room, operated by Tomahawk Group, with Negroni occupying 1,050 sq ft and Le Mignon taking 1,800 sq ft. Chocosina, a boutique chocolate shop, rounds out the retail roster.
The short-term rental units are managed by Bakan Group. The arrangement is notable given recent changes to Québec’s short-term rental laws, making permitted Airbnb properties rare in the city.
The property generates $820,000 in annual gross rent. The retail portion has a weighted average lease term of 3.5 years with 3% annual rent increases set out in the lease agreements.
Recent improvements include an elastomeric membrane roof renovation completed in 2023. Upgrades since 2017 include a new concrete staircase with maple flooring, a new steel lobby staircase, and enhanced wall and ceiling insulation. The building also has a new Allard elevator and central air conditioning.
The property is near the Notre-Dame Basilica, a major tourist attraction in Montréal.
Mercer Group, a Montréal-based real estate management company, has been active in acquiring and retrofitting properties in the Montréal and Miami markets.
