The ReStays Ottawa boutique luxury hotel in downtown Ottawa and a block of unsold ReResidences condos have officially been sold as part of a court-ordered sale, according to filings in Ontario Superior Court.
The ReStays Ottawa and ReResidences are located at 101 Queen Street and 108-116 Sparks Street, and consists of 111 hotel suites, 91 condo units, and just over 21,000 square feet of retail space across a six- and 17-storey building, all above an underground parkade.
The development sits on land that is subject to a ground lease with the National Capital Commission, the Crown corporation that owns and manages land in the capital region, that expires on November 30, 2076, according to court documents.
The project was developed by Ontario-based developer Choo Communities under its Ashcroft Homes brand — through Ashcroft Urban Developments Inc. — in response to a request for proposals by the Commission. ReStays opened in September 2021.
Several of Ashcroft Homes’ other projects have also become insolvent in recent years, and were similarly placed under receivership by various lenders, as previously reported by STOREYS.
The Receivership
The ReStays Ottawa and ReResidences proceedings were pertaining to a first-ranking loan in the principal amount of $65,000,000 that was registered in August 2021 by non-bank lender CMLS Financial, with Equitable Bank and General Bank of Canada identified in court documents as “participants” in the loan.
According to an affidavit sworn by a CMLS Financial representative, the loan matured on September 1, 2023 and CMLS issued a formal demand for payment on November 15, claiming they were owed $58,920,629.31 as of November 9.
However, the two sides entered into a forbearance agreement on February 23, 2024 to delay enforcement and give Ashcroft time to secure refinancing, in exchange for a $10 million collateral mortgage over 256 Rideau Street in Ottawa.
Interior and exterior photos. (ReStays Ottawa)
Ashcroft was unable to repay the loan during the initial forbearance period, but the forbearance was extended to September 30, 2024, so Ashcroft could sell 256 Rideau Street and use the sales proceeds towards repaying the loan, which it did.
The extended forbearance agreement expired and Ashcroft was still unable to repay the loan, but the two sides then agreed to a second extension to March 31, 2025, conditional on a $20 million collateral mortgage on 101 Champagne Avenue South. Ashcroft failed to provide that collateral, however, prompting CLMS Financial to initiate the insolvency proceedings.
According to court documents, Ashcroft initially secured creditor protection under the Companies’ Creditors Arrangement Act (CCAA) in December 2024, without the consent of the lenders. The lenders then pushed for an interim receivership before a full receivership was granted on February 24, 2025.
The Sales Process
In mid-March 2025, the Ontario Superior Court then approved the court-ordered sales process for the property, which includes the hotel component, the retail component, and 18 of 91 condo units that remained unsold.
The property was listed for sale by Ashley Martis, David Bloomstone, Jason Lay, and John Coates of TD Cornerstone Commercial Realty, alongside Nathan Smith, Scott Brooker, and Adam Freedman of Cushman & Wakefield Ottawa, on an unpriced basis. The brokers noted in their sales brochure that there is an opportunity to reposition the hotel as a luxury rental building.
Marketing began in early-April 2025, 37 parties signed confidentiality agreements, and the brokers led 13 tours of the property. Nine bidders submitted letters of intent, the brokers held a second round of bids, whittling it down to five bids. One of those bids was selected and the two sides entered into a purchase and sale agreement in June 2025. However, the purchaser “identified several issues” and asked for more time to do due diligence and waive their conditions. The due diligence period was ultimately extended several more times before the deal was terminated in September.
An overview of ReStays and ReResidences. (TD Cornerstone, Cushman & Wakefield Ottawa)
The brokers resumed the sales process, which drew a new round of bids that included a revised offer from the initial purchaser and one from CLV Group — the privately-held company founded by Mike McGahan that partnered with Singaporean sovereign wealth fund GIC last year to acquire InterRent REIT, whose Board of Directors was chaired by McGahan.
CLV Group submitted their letter of intent on February 2, 2026 and waived its conditions on June 19, save for the condition of court approval. CLV Group is acquiring the property through 1000747194 Ontario Inc. for a price that was redacted from court documents, but the court-appointed Receiver stated in a report dated July 7 that the debt owed to CMLS Financial would be approximately $59.2 million as of July 28, and that CMLS Financial would see a shortfall.
The transaction was approved by the Ontario Superior Court on July 14, and announced by the brokers last week.
