An Ottawa development that was placed under receivership in October 2024 due to over $80 million in debts is now being listed for sale by CBRE's Land Services Group on behalf of restructuring firm MNP.
The development site, known as "Eastboro Phase 2," is located roughly 20 minutes east of the City of Ottawa in the town of Orleans, "known for its family-friendly atmosphere and mix of residential, commercial, and recreational spaces," says the listing. Bounded by Renaud Road, Navan Road, and Mer Bleue Road, the 67.7-acre site is approved for a 958-home subdivision that has yet to come to fruition.
Current land owner and developer behind the envisioned project is Ashcroft Homes, a long-time Ottawa-area homebuilder that was recently forced into receivership itself.
While the Eastboro project went off without a hitch at first, an unforeseen obstacle in the form of poor soil conditions, discovered in July 2023, made installing the storm sewer more expensive and time consuming than expected. The setback also led to a dispute with the City of Ottawa over who would pay for the more expensive installation plan, which included running the concrete storm drains along the road, requiring new road closure permits.
In the end, the City reimbursed Ashcroft $30,213,280 for construction, land, engineering, and project-management costs pertaining to the stormwater sewer in July 2024, but in the meantime, the developer had accrued $80 million debt and RBC, who had advanced a $75 million loan in May 2021. In September 2024, RBC applied for the receivership, and it was granted by the Ontario courts in October 2024.
Specs:
- Address: 3323 Navan Road, Orleans, Ottawa
- Price: Negotiable
- Size: 67.7 acres
- Approvals: Draft plan, residential and mixed-use/commercial
- Sales inquiries: CBRE
Since January, MNP has been working with CBRE to flesh out a sale process, resulting in the listing going live late last week. Up for grabs is nearly 70 acres of draft plan-approved land serviced with internal roads and infrastructure containing 25 partially-built houses. Approved home types include single-detached, semi-detached, and townhouse units with medium density blocks, and in addition, the site includes 6.42 acres of land zoned for mixed-use/commercial blocks and 2.97 acres for a public park.
Though the storm sewer has yet to be installed, the listing includes an interim pond constructed to service the site once the upgraded storm sewer has been installed as well as the pipes required to complete the job, paid for by Ashcroft.
Zooming out, the site is part of the City of Ottawa's East Urban Community Design Plan, intended to develop the lands within and surrounding the site into a new region with a mix of complimentary uses. "The offering represents a significant opportunity to develop a complete community that will better connect the existing neighbourhoods and provide necessary housing stock for the community of Orleans," says the listing.
Currently, surrounding amenities include the Navan Medical Centre, Patrick Dugas and Eden Parks, Place D'Orleans Shopping Centre, and a number of elementary schools. The site is also easily accessible by several arterial roads.
