A downtown Montreal office building will be converted into student housing by its new owner, Avison Young announced.

Gestion Sidev sold the property to 5AM for an undisclosed price.

The property is located at 1434 Sainte-Catherine Street West. The street is a iconic primarily retail stretch known for shopping and entertainment located near McGill and Concordia universities.

“We are proud to have worked with our client, Gestion Sidev, to identify a buyer who demonstrates an incredible vision for this property, given its ideal location in the heart of downtown Montréal, so close to some of the best post-secondary institutions in the country,” said Mark Sinnett, Avison Young principal who serves as the company’s head of capital markets in Quebec.

“Repurposing this property into a home for students will give it a new life and contribute to the continued revitalization of our downtown.”

The building stands five storeys and spans 44,511 square feet. Features that make the building desirable for conversion include its mixed-use and residential zoning; optimal, smaller floor plates and a low occupancy rate.

The building’s other draws include natural light, high ceilings, U-shaped floor plans and accessibility to the metro, REM public-transit project and various highways.

Montreal-based Gestion Sidev provides integrated development and management services for real estate investments. Also a local firm, 5AM specializes in revitalizing buildings in central Montreal.

Sebastian Gatti, Guillaume Monast, and MC Laflamme-Sanders served with Sinnett on the Avison Young team that represented Gestion Sidev.

Avison Young said it has identified at least 20 potential office adaptive reuse projects in downtown Montreal.

Potential office conversions to residential and other uses have become a hot topic across Canada. Investors are contemplating conversions more often as they grapple with office vacancy and availability; effects of the COVID-19 pandemic and the hybrid work movement on space demand; high interest rates and other factors.

Pictured (middle): Building in downtown Montreal purchased by 5AM Capital for office-to-student-housing conversion.

Photo: Courtesy of Avison Young