KRP Properties converting Kanata North office tower to residential units
David Sali, OBJ
June 5, 2024 1:52 PM ET
KRP Properties plans to convert a 10-storey office building near the Brookstreet Hotel into a residential complex as the firm tries to diversify its portfolio amid the ongoing shift to hybrid work. Kanata’s largest property manager says it has informed tenants of the tower at 535 Legget Dr. that the 140,669-square-foot building will be turned into rental apartments in the near future.
In a news release this week, the company says it is “looking at getting ahead of the curve” as the office-to-residential conversion trend gains momentum in the wake of the widespread move to remote and hybrid work during the pandemic. “This new residential tower would add essential inventory to the residential shortage in Kanata North and also offer an opportunity for companies looking to bring employees closer to office, and looking to attract domestic and international talent,” KRP said, adding the property “will soon undergo a refit to convert into an upscale residential apartment complex.” Officially known as Tower C, the building opened in 2000 and is the newest of three office highrises at 535 Legget Dr. in the heart of the Kanata North tech park.
The company said this week the building has a vacancy rate of 21 per cent.
KRP would not disclose the current tenant list, citing confidentiality agreements. The tower’s past tenants included fast-growing software firm Solace, which previously occupied several floors in the building before relocating to nearby 4000 Innovation Dr. earlier this year. In an email to OBJ on Tuesday, KRP spokesperson Jeremy Pimenta said the timeline for the project would be “revealed shortly.”
Pimenta said the tower’s “excellent location” near the Brookstreet Hotel and The Marshes Golf Club as well as its proximity to public transit, the Queensway and amenities such as shopping centres and grocery stores make it a viable candidate for conversion. He cited office downsizing in the wake of the pandemic as well as the “rising need for residential inventory in Kanata North” and the growing push for tech companies to offer “residential experiences close to office” as key factors in the property management firm’s decision to redevelop the building. KRP, which manages more than three million square feet of real estate in Kanata, is the latest Ottawa property owner that is opting to repurpose underused office space as apartments. Half a dozen such projects have been launched in the past year – most of them in the downtown core, where office vacancy rates have soared since the COVID-19 crisis.
KRP’s plan is the second conversion announced for a suburban property this spring. In April, Gatineau-based Devcore Group said it will redevelop most of a 230,000-square-foot office complex on Telesat Court in Ottawa’s east end into loft-style studio apartments. The Legget Drive project will be the first of its kind in Kanata North, which has traditionally not featured much residential development.
That’s changing, however.
Just a few blocks west of Legget Drive, telecom giant Nokia is preparing to tear down its existing campus on March Road and replace it with a new 500,000-square-foot office and R&D hub and as many as 11 residential highrises. Meanwhile, several developers are also planning to add more housing density to the neighbourhood, a trend that has accelerated since the City of Ottawa adopted a new Official Plan two years ago that allows for greater density along major corridors such as March Road and eliminates rules that require a certain percentage of dwelling types on such properties. Gatineau-based Brigil, for example, is ramping up a plan to build more than 1,900 residential units on 50 acres of land northwest of The Marshes Golf Club on March Road.
In addition, Toronto’s Main and Main Developments wants to transform a 13.6-acre site at the corner of March Road and Terry Fox Drive into a cluster of mid- and highrise buildings that would include more than 2,000 residential suites. Asked if KRP plans to convert any other office properties to residential use, Pimenta said the company would reveal more details about its long-term strategy “shortly.”
https://obj.ca/krp-properties-to-con...o-residential/
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