April 16, 2012
Marketing Supplement to Ottawa Business Journal
460 Hunt Club Centre
Why lease when you can own?
460 West Hunt Club Centre ready for fall occupancy
Ottawa’s Springcress Properties Inc. is providing retail, medical and service businesses with an alternative to the standard commercial lease with its new commercial condominium development at the corner of Merivale and West Hunt Club roads.
At 460 West Hunt Club Centre, business owners can buy their square footage and enjoy all the benefits that come with real estate ownership – asset appreciation, stable operating costs and the freedom to alter their space. The new retail and office development is Springcress’s first to also offer the ownership model to retail businesses, making it unique in the Ottawa market. Springcress had previously sold out to successful office condominium developments on Queensview Dr and on Terry Fox Dr. in Kanata.
“Over the years, many owners have come to us wanting to own their property and construct a custom building to their specifications,” said Springcress President David Spillenaar. “But it just doesn’t make financial sense for a business of 5,000 square feet or less. Why? Because the amount of land required and the lack of any economies of scale. However, when a number of owners are brought together in a condominium these obstacles are overcome and each owner can enjoy long-term stability and build their own equity rather than suffer rising lease costs.”
460 West Hunt Club Centre is located at one of the busiest intersections in the city. It is a premier location for businesses such as salons, health services, professional services, brokerages, cellular outlets and home improvement showrooms.
In today’s retail market, leasing costs in the area are around $30 per square foot. However, at current interest rates, businesses can pay as little as $19 per square foot to own their space. In addition, the maintenance costs of the condominium model are comparable to the operating costs a lessee must pay their landlord.
460 West Hunt Club Centre, to be built this summer by MP Lundy Construction Ltd. from a design by M. David Blakely Architect Inc., offers space on two floors. Buyers have the opportunity to take as much space they need, in whatever configuration and shape they want, and have that space fitted up from scratch. They can even buy extra space in anticipation of future growth and rent out that additional space to defray their mortgage costs.
More than 50 per cent of 460 West Hunt Club Centre is already sold for fall occupancy. On the second-floor only two of the office suites remain available. To learn more, visit www.springcress.com or call 613-225-6000 to make an appointment to visit Springcress’s homebuilder-style showroom at 6 Gurdwara Rd.
“I worked with two young dentists who were starting up a two-person family practice in Ottawa. We examined a variety of rental and purchase options across the city. In the end they decided, with their accountant’s input, that ownership made the best financial sense for the long term. The monthly costs of rental versus ownership were about the same, but with ownership they were investing in something. They decided on 460 West Hunt Club Centre because its location was ideal for their practice and Springcress Developments would provide them with a turnkey operation.”
– Tanya Wayne, Vice President, DTZ Barnicke
“We thought it was worth the investment to move into an ownership position rather than continue to pay significant monthly lease costs. Having the capacity to build our own equity by paying down the principal in our mortgage over time is important. With Springcress’s commercial condominiums, we also have control over the space to change it as we wish without having to jump through the hoops that are typical of a commercial lease arrangement.”
– Michael Arno, President, Realiza Group
PHOTO ABOVE: David Spillenaar, Springcress President
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