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Cadillac Fairview | Soon a new tower in the city center

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While housing starts have dropped drastically in 2022, at least one developer is preparing to launch a major residential project downtown.

Cadillac Fairview, developer behind the Tours des Canadiens condos, plans to start construction of a 120-meter residential tower southeast of the Bell Center in 2023.

We have had our building permit since May 2022 for a 100% residential rental project of approximately 500 units in the Quad Windsor district. We continue with some elements to improve the project with the intention of moving forward soon.

Brian Salpeter, Senior Vice President, Development, Cadillac Fairview

Cadillac Fairview is building the Quad Windsor real estate project near the Bell Centre, an investment of 2 billion dollars in 15 years. The first building is the Deloitte Tower, which offers offices, in 2015. The most recent, the Tour des Canadiens 3, condominiums, was completed in 2021.

The next tower to be built will be located on rue Saint-Antoine, at the corner of Jean-D’Estrées, just east of the most recent of the Canadiens’ towers.

Originally, the tower was to include a basilica to accommodate a hotel on the first 10 floors. “We considered not to proceed with a hotel part for the moment”, specifies the vice-president of Cadillac Fairview.

“There are a number of uncertainties currently in the economy, continues Mr. Salpeter, but, considering what we want to create, we are convinced of being able to move forward in 2023.”


PHOTO ALAIN ROBERGE, THE PRESS

The Cadillac Fairview project will take shape southeast of the Bell Centre, at the corner of Saint-Antoine Ouest and Jean-D’Estrées streets, where there is currently a parking lot.

Sudden drop in housing starts in the city center

If so, Cadillac Fairview would be one of the few promoters to consider it. Large-scale residential projects launched since 2021 remain limited.

On the rental side, there is Canvar at 900, rue Saint-Jacques and Point Zero at 980, rue Saint-Antoine. Both saw the work begin. Also, Devimco is tackling phase 2 of Alexander Square Children, in the west of the city center.

On the condominium side, there is Square Phillips, phase 2, by the Brivia group, Le Sherbrooke, by Broccolini, at the corner of Guy, and Odea Montréal, by Cogir, in collaboration with the Cree Nation, on Robert- Bourassa.

Downtown housing starts have plummeted 60% in one year.

They fell from 5,073 units in January to September 2021 to just 2,003 units over the same period in 2022, according to Canada Mortgage and Housing Corporation data compiled by the Association of Building and Construction Professionals. housing in Quebec.

A chilly market

The rise in construction costs, by 15% over one year in the second quarter, the surge in interest rates and the high price of land make the equation between the cost of the project and its future profitability difficult. Result: promoters and bankers have become cautious.

“The fact that Cadillac Fairview has owned the land for a long time, it makes sense that its projected budget is coherent to build a project of this scale compared to other lands which have been paid much more expensively”, says Noémie Lefebvre, director of real estate and land development at the Altus Group.

The promoter proceeded to assemble the land south of rue Saint-Antoine from 2007 to 2015.

Downtown land prices last exceeded the $200 per buildable square foot mark in 2021. Since then, the number of transactions has dwindled.



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