- What Crown Realty Partners has put 3755 Riverside Drive on the block
- Why The two-building complex is 94% occupied
- What next CBRE has the assignment
An office complex in a suburban portion of Ottawa is on the block for nearly $60m, Green Street News can reveal.
Crown Realty Partners has given the assignment for 3755 Riverside Drive to CBRE. Guidance for the 280,000 sq ft complex is around $60m. Based on initial NOI, pricing translates to a first-year capitalization rate of approximately 8%.
The firm acquired the property from IBM in 2021 through its Crown Realty IV Limited Partnership fund for $49m. Created in 2017, the fund is now in its disposition phase.
3755 Riverside Drive comprises two office buildings and a four-level parking garage on 6 acres. Tower I was completed in 1985 and retrofitted in 2001. PCL Construction occupies space in the six-storey building. Net rent for available space is $19.50/sq ft, according to leasing materials. Tower II, rising 10 storeys, was completed in 2000. It’s fully occupied by IBM.
Together, the buildings are 94% occupied with a weighted average lease term of 7.2 years. Crown has spent approximately $4.1m on capital improvements since 2022, including upgrades to the lobby and conference centre. Amenities include volleyball and basketball courts, patios, a cafeteria and a fitness facility. There are 1,008 parking stalls.
Near the intersection of Riverside Drive and Uplands Drive, the complex is within a kilometre of Ottawa Hunt and Golf Club and Ottawa International Airport, within 4km of Greenboro light rail station and within 9km of downtown Ottawa.
3755 Riverside Drive is zoned GM – general mixed-use – and designated as Neighbourhood within the Outer Urban Transect Area under Ottawa’s Official Plan. Permitted uses include mixed-use, office, commercial and residential, and there is long-term redevelopment potential.
The office vacancy rate in Ottawa’s south submarket was 9.5% in Q1, CBRE said in a recent report, below the suburban average of 10.2%. The node reported over 35,400 sq ft of positive net absorption in the quarter.
Ottawa has seen an uptick in office listings in recent weeks, including 275 Slater Street, which LaSalle Investment Management is looking to offload for $45m, and 118 Sparks Street, which Canderel is marketing for $18m.
Crown Realty Partners acquires, leases, manages and redevelops commercial real estate properties across Canada. Les Miller is managing partner and chief executive.
Correction: This article was updated to correct pricing guidance
