Montreal’s Office-to-Residential Conversions: A Growing Trend
Downtown Montreal is witnessing a significant shift as underutilized office spaces are reimagined as modern residential units. The most prominent example, Le Samuel, a 211-unit conversion at 1245 Sherbrooke St. W., demonstrates the potential – and challenges – of this evolving trend.
Le Samuel: A Legacy Asset Reborn
Developed by the Armoyan Group of Companies, Le Samuel transformed a former Standard Life Assurance Company headquarters, vacant for seven years, into luxury apartments. George Armoyan Jr. Notes that while the project may not yield the highest financial return, the “intangibles” and lessons learned make it worthwhile. The building, purchased in June 2023, benefits from a prime location in the Golden Square Mile.
The conversion cost was comparable to building a new multifamily building. Despite the lack of balconies due to city regulations, units are larger than average. Currently, one-third of the units are leased, with incentives including one month of free rent and a 24-month rent increase guarantee.
Beyond Le Samuel: Expanding Portfolio and Future Projects
The Armoyan Group isn’t stopping at Le Samuel. They previously built Le George, a 732-unit apartment building near the Bell Centre. Recent acquisitions include the historic Balfour Building and 4410 Saint-Laurent Blvd. In the Plateau Mont-Royal borough. Further expansion plans include 500-600 rental units in St-Jovite, near Mont Tremblant.
The company’s experience extends beyond Montreal, with hotel-to-apartment conversions completed in London, Ontario, and Saint John, New Brunswick.
The Rise of New Neighbourhoods: Quartier des Lumières and Quartier Molson
Alongside individual conversions, larger-scale neighbourhood redevelopments are underway. The Quartier des Lumières, built around the former Radio-Canada/CBC headquarters, aims to revitalize a previously disrupted area. Plans include 2,000 residential units, 500 social housing units, and 200 affordable units, alongside a 70,000 square foot public space.
The former Radio-Canada/CBC tower will be preserved, and its extensive underground space will house large surface stores with parking. Construction is slated to continue annually until 2034.
Nearby, the Quartier Molson, built on the site of the former Molson Brewery, will feature 5,000 residential units. Developers are committed to preserving key elements of the brewery’s history, including the tower, chimney, clock, and Molson sign, and providing public access to the riverfront. The project will also prioritize LEED and zero carbon building certifications, with 350 social and affordable units planned in collaboration with the Société d’habitation et de developpement de Montréal.
Challenges and Considerations in Office Conversions
Armoyan noted that the first office-to-residential conversion is always the most demanding. While Le Samuel benefitted from a steel frame and a large, rectangular floorplate, not all buildings are equally suited for conversion. Decontamination, as seen with the Quartier Molson project, can also add significant costs and complexity.
FAQ
Q: What is driving the office-to-residential conversion trend in Montreal?
A: Underutilized office space, coupled with demand for housing, is driving this trend.
Q: Is converting an office building more expensive than new construction?
A: According to George Armoyan Jr., the cost can be comparable.
Q: What are some of the benefits of converting existing buildings?
A: It can revitalize neighbourhoods, preserve architectural heritage, and reduce construction waste.
Q: What is the Armoyan Group planning for the future?
A: They are expanding their portfolio with additional conversions and new construction projects in Montreal and beyond.
Did you know? Le Samuel’s exterior features Porino pink granite, a rare and prestigious stone in Montreal architecture.
Pro Tip: When considering a rental property, location is key. The Golden Square Mile offers a unique blend of culture, commerce, and history.
Explore more articles on Montreal real estate and urban development to stay informed about the latest trends. Subscribe to our newsletter for exclusive insights and updates.
