Montreal-area real estate companies Groupe HD, Kastello Immobilier and CPD Immobilier have partnered to redevelop a site in Montreal's Saint-Michel neighbourhood, planned to host a six-storey residential and commercial complex.

The residential component is slated as 380 rental units, joined by over 20,000 square feet of commercial space. Nearly 40 units will be affordable housing, Mathieu Colette, partner and vice president of real estate at Kastello, said in a press release.

Redevelopment of the site located at 2601 Jarry St. E. represents an investment of over $150 million. Montreal-based Groupe HD will be the developer, with Brossard-based Kastello and Pointe-Claire-based CPD as financial partners.

"By harnessing the potential of this evolving sector, Groupe HD is once again committed to creating sustainable living environments that align with the transformation of neighbourhoods and the people who live in them," Thomas Dufour, co-president of the Montreal-based investor, developer and manager of residential projects, said in the announcement.

The redevelopment will be part of a broader effort to increase density and introduce more housing to the neighbourhood. The project will be within walking distance of the Saint-Michel metro station and Frédéric-Back Park.

Construction is scheduled to begin at the end of 2025, to be done by Construction Praxis, the construction division of Groupe HD. An expected date for completion of the project was not provided.

About the partners

Groupe HD is an emerging developer in Montreal. Since its founding in 2020, it has been involved in projects totalling over 3,000 residential units, according to its website.

Other prominent Groupe HD project as of late include a joint venture with Fondaction for the acquisition of a property in Montreal's Mercier–Hochelaga-Maisonneuve borough to develop 1,200 housing units, and another partnership with Fondaction to develop a 155-unit purpose-built rental apartment building on the site of a former Volkswagen automotive dealership in LaSalle, Que.

The project in Saint-Michel is not the first time the company has collaborated with Kastello, a family-owned company founded by by the Fortin family which is involved with Alimentation Couche-Tard. Last year, the two firms announced a joint venture with Société Financière Bourgie to acquire and redevelop the Fortier Ford site in Greater Montreal as a three-tower project of 859 units and 118,400 square feet of commercial space.

Real estate investor Kastello is an active partner in over 20 real estate projects and has over 1,700 rental units in its portfolio, its website states. Its portfolio of residential, industrial and office properties includes the Solstice condo in Montreal, 480 Rue Perreault in Levis, Que. and Alstom in St-Bruno-de-Montarville.

CPD is a developer and manager of open-air lifestyle centres in the Greater Montreal, Ottawa and Toronto areas. Its properties include 61 Brunswick Blvd. in Dollard-Des Ormeaux, a suburb of Montreal, and 1515 North Service Rd. in Burlington, Ont. The company’s portfolio exceeds two million square feet of gross leasable area.