2115-2125 De La Montagne Street Montréal, Québec
Investment opportunity 2115-2125 De La Montagne Street Montréal, Québec
Investment opportunity
The Opportunity
Avison Young is proud to present this exceptional 2115-2125 De La Montagne Street is located in opportunity to purchase and own a one-of-a- the Ville-Marie Borough of Montreal, on the east kind, historic property located in the heart of side of De La Montagne Street. The property is in Golden Square Mile in Downtown Montréal, steps proximity of the Ritz-Carlton Hotel, the Montreal from Sainte-Catherine Street West and high-end Museum of Fine Arts, both Concordia and retailers such as Ogilvy Holt Renfew and Escada. McGill Universities, along with several office and residential towers. It is also located at a walking Built in 1892, 2115-2125 De La Montagne Street is distance of the Peel and Guy-Concordia metro a historical gem with exceptional cachet. Carefully stations. The property is also easily accessible from maintained over the years, the property offers Highways 720, 15 and 20. three floors of office space, a retail unit in the basement and a rooftop terrace.
With a total leasable area of 8,972 square feet, this property represents an outstanding opportunity for an owner/occupant investor as the top three floors of the building can be delivered unencumbered by leases for a total of approximately 7,000 square feet. Conversely, as an investment, the property can be sold with the top three floors leased back to current ownership for a five-year period (see leaseback scenario on page 11).
2115-2125 De La Montagne Street | page 2
The Building The Site
Three-storey with basement Type Legal Description 1 338 848, Cadastre of Québec commercial building. Year of 1892, rear part extended in 2005. Site Area 3,126 square feet construction Quarry stone and mortar poured Foundation Configuration Regular concrete. Wood and masonry bearing walls. Frontage on de la 24 feet Floor structure Steel for the rear part, which was Montagne Street extended in 2005. Zoning 0079 Mostly built-up composition. Designation Roof Small portion in asphalt shingles in M.8C : Mixed-zone allowing dome shape. Permitted Uses commercial sales and services of Sandstone, brick and some metal Exterior walls medium intensity siding. Rear: 9.85 feet Minimal Setbacks Aluminum and wood-framed Sides : 8.20 feet windows. Openings Steel-framed doors and Permitted Heights Maximum: 45.93 feet (3 storeys) commercial-type wood-framed glass doors. Maximum Density 3 Gypsum and board plaster ceilings. Hardwood, ceramic tile and carpet Interior finishes floors. Gypsum board, plaster, Ground Coverage Maximum: 100 wood trim and exposed brick Minimum: divisions. Parking 1 space per 3,767 square feet Upper floors are heated and air Requirements Maximum: conditioned by a combined roof- 1 space per 1,615 square feet mounted electric HVAC system. Heating and There are also electric baseboards Acquired Rights No Air Conditioning for heating. The basement is equipped with a separate air conditioning unit. Main entrance: 600 amperes. Electricity Incandescent and fluorescent lighting. Automatic wet sprinklers with heat Security sensors and emergency lights.
Other Garage with two parking spaces.
2115-2125 De La Montagne Street | page 4 Building Area Condition
The building has been extensively renovated Basement 1,764 square feet over the years and is in very good condition. The building extension in 2005 adds 1,585 square feet Ground Floor 2,320 square feet of office space. Previously, major renovations had been completed around 1998 (roofing, HVAC, nd 2 Floor 2,320 square feet windows). Most recently, in 2015 and 2016, the roof was repaired, the entire second floor was rd 3 Floor 2,320 square feet renovated, the washrooms on all floors were updated and the commercial space was recently Sub-Total 8,724 square feet refurbished. Overall, the building is considered to be in good condition, with no need for major Garage & Storage 572 square feet repairs.
Total Gross Area 9,296 square feet
Total Above Grade 6,960 square feet
Leasable Areas
Commercial 1,700 square feet (Basement) Office 6,700 square feet (GF, 2nd and 3rd)
Garage & Storage 572 square feet
Total Gross 8,972 square feet Leasable Area
2115-2125 De La Montagne Street | page 5 Floor Description
The front portion of the basement currently consists of a retail space that is mostly open, with fitting rooms and a storage space in the back. The back Basement portion of the property, which was expanded and recently renovated, consists of a garage space for two vehicules. The front portion of the ground floor includes a small lobby with fireplace, a wooden staircase, a large room with a fireplace currently used as a meeting room and a living room with a third fireplace that connects to the front Ground Floor room. All components at the front of the building have original woodwork, brick walls and boast incredible cachet. The back portion of the ground floor comprises a small kitchen area, a meeting room, a closed office and a large area for 4 to 8 workstations. The second floor of the building includes large, closed offices in the front portion of the building, as well Second Floor as a large washroom with a shower. The back portion of the second floor includes a large office area for 6 to 10 workstations, as well as 4 closed offices. The third floor of the building includes large, closed offices in the front portion of the building, as well as a washroom. The back portion of the third floor Third Floor includes a large office area for 6 to 10 workstations, as well as another open office area for 4 to 8 workstations. The third floor also includes a beautiful skylight over the top of the staircase. The rooftop of the property includes Rooftop a beautiful terrace ovelooking Golden Square Mile from the 4th floor.
2115-2125 De La Montagne Street | page 6
2115-2125 De La Montagne Street Montréal, Québec
Investment opportunity
McGill University Hudson’s Bay Redpath Museum McCord Museum Promenades de la Cathédrale
MACTAVISH STREET MCGILL COLLEGE AVENUE
McGILL
MANSFIELD STREET Eaton Centre PEEL STREET
METCALFE STREET
STANLEY STREET Hotel Omni Mont-Royal Hotel Le Cantlie DRUMMOND STREETSofitel Montréal MAA Sports Club
Club Mount Royal Place Ville Marie DE LA MONTAGNE STREET
Escada
Ritz-Carlton PEEL Canada Goose DU MUSÉE STREET Maison Boulud Tiffany & Co H&M
Holt RenfrewSHERBROOKE STREET WEST Le Pois Penché Anthropologie REDPATH STREET Christofle Club Mount Stephen Mont Blanc ChâteauCRESCENT d’Ivoire STREET Montreal Museum of Fine Arts Four Seasons Lowes Hotel Vogue SIMPSON STREET Nespresso MarcusDE MAISONNEUVE BOULEVARD WEST
BISHOP STREET Ogilvy Holt Renfrew Urban Outfitters Sir Winston Churchill Complex Mackage Apple Store SAINTE-CAHTERINECOS STREET WEST MACKAY STREET La Queue de Cheval Hurley’s Irish Pub Rudsak
GUY-CONCORDIA Structube RENÉ-LÉVESQUE BOULEVARD WEST Concordia University Golden Square Mile
The shining beacon of central Montréal, the The Golden Square Mile is also known as an Golden Square Mile has been home to glitz and outstanding shopping destination, with luxury glamour since the 19th century. First established boutiques ranging from Holt Renfrew to Tiffany’s, during the late 18th century as a peaceful Swarovski and Escada, as well as Montreal Museum neighbourhood within reach of the Old Port, then of Fine Arts’ M Boutique and the numerous private considered “downtown”, the area owes its iconic designer studios along Sherbrooke Street West. Victorian mansions and commercial buildings to the 1850s, when it became the seat of Montréal’s The sector is also home to La Maison Ogilvy, which impressive wealth. In fact, 80% of Canada’s wealth includes a new luxury shopping concept, Ogilvy was concentrated in the Golden Square Mile at Holt Renfrew, as well as a Four Seasons Hotel the turn of the 20th century. The area’s inhabitants and world-renowned restaurant Marcus. Other included Montréal’s most famous families – nearby hospitality establishments include Hôtel industry leaders of mostly Scottish descent – Le Germain, Hôtel Omni Mont-Royal, Le Mount including the McGills, the Stephens, the Allans Stephen Hotel, Loews Hôtel Vogue, Ritz-Carlton and the Baggs. Montréal and Sofitel Montreal Golden Mile.
The Golden Square Mile is known to many as Quartier des musées, because of its illustrious cultural destinations. It is namely home to the McCord Museum, the Montreal Museum of Fine Arts and the Redpath Museum, drawing over a million visitors to the area each year – not to mention the dozens of private galleries along Sherbrooke Street.
The name, Golden Square Mile, comes from the area’s commercial prosperity, a trait that remains to this day. The area remains true to its namesake thanks to the top firms that have established along Sherbrooke Street, as well as the many luxury hotels and fine dining establishments in the neighbourhood.
At the foot of Mount Royal, the Golden Square Mile is home to McGill University, with Concordia University located a few blocks west. The neighbourhood is therefore home to two of Canada’s most renowned universities.
2115-2125 De La Montagne Street | page 9 3 floors (2005)
3 floors
Floor Plan
3 floors
main entrance balcony entrance basement
2115-2125 De La Montagne Street | page 10 Leaseback Analysis Asking Price
Potential Revenue Projection Asking Price $5,650,000
Basement @$40.00 NN X 1,764 sf $70,560
1st Floor, Front @ $50.00 NN X 1,183.2 sf $59,160 (60% of gross area - 15% common area) Evaluation & Taxes 1st Floor, Back @ $20.00 NN X 788.8 sf $15,775 (40% of gross area - 15% common area)
2nd Floor @ $20.00 NN X 2,320 sf $46,400 Assessment, Land (2020-2021-2022) $1,089,000
3rd Floor @ $20.00 NN X 2,320 sf $46,400 Assessment, Building (2020-2021-2022) $936,800
Garage @ $350/month X 2 spaces $8,400 Total Municipal Assessment (2020-2021-2022) $2,025,000
Total Net Potential Revenue $246,696 Municipal Taxes (2020) $65,554
School Taxes (2019-2020) $2,759
Purchase Price @ 4.5% $5,482,133.33 Total Taxes (2019-2020) $68,313
Purchase Financing @ 75% of P. P. $4,111,600.00
Cost of Money @ 3.5% $143,906.00
Cash-in @ 25% $1,370,533.33
Cash Flow $102,790.00
Leveraged Return 8%
Assumptions
Basement is released @$40.00 NN
Vendor leases back top 3 floors for 5 years
2115-2125 De La Montagne Street | page 11 2115-2125 De La Montagne Street Montréal, Québec
Investment opportunity
To plan a visit, obtain further information or learn more about Avison Young’s comprehensive range of services, please contact:
Thomas (Tom) Godber Principal Chartered Real Estate Broker [email protected] T 514.905.5440
Robert Emblem Vice President Real Estate Broker [email protected] T 514.360.3641
Avison Young Québec Inc. Commercial Real Estate Agency 1200 McGill College Avenue Suite 2000 Montréal, Québec H3B 4G7
T 514.940.5330 F 514.940.5331 avisonyoung.com