Morguard has sold a downtown Ottawa office building to the federal government for $125.3 million.

The 11-storey structure is located at 181 Queen Street near the Parliament buildings. Public Works and Government Services Canada (PWGSC) executed an option to purchase the property at fair market value as outlined in a lease agreement, said Morguard in a news release.

PWGSC manages the federal government’s procurement, operations and real property. The building houses CBC and Radio-Canada’s national headquarters and broadcast centre.

Morguard used part of the proceeds to pay a $57.7-million first mortgage. The $125.3-million purchase price equated to approximately $500 per square foot. According to McKee Engineering, the building comprises 275,000 sf.

Other federal groups also occupy spaces along with PWGSC, which is a major investor and trendsetter in the local office sector. The deal comes as Ottawa’s office market grapples with high vacancy and aging assets are becoming harder to trade.

Mississauga, Ont.-based Morguard said it “proudly” remains one of the largest office holders in downtown Ottawa with a portfolio that exceeds 3.3 million square feet.

Photo: Wikipedia