Former Office Building Transformed into 21 Rental Apartments

A former office building in downtown Owen Sound has undergone a significant conversion, transforming into a residential complex with 21 rental apartments. The project, named The Edgewater, offers mainly one-bedroom units, with the first tenants expected to move in on November 1, 2023. Located at 920 1st Ave. W., the building previously housed the Grey Bruce Health Unit before being leased to various commercial tenants.

The Edgewater features a total of 18 one-bedroom apartments and three one-bedroom plus den units. As of now, five units have been rented, with monthly rents starting at $1,950 for standard one-bedroom apartments and rising to $2,250 for the larger options. Each unit ranges from 600 to 850 square feet, providing ample living space for new residents.

Trevor Heathers, president of Northridge Property Management Inc., noted that the decision to convert the building stemmed from a market gap in high-end one-bedroom rentals. He anticipates interest from both seniors and younger professionals moving into the area. “They are built to a very high-end standard in comparison to what you would typically find in new construction in the marketplace,” Heathers stated.

The original three-storey building was constructed in the mid-1950s, with a four-storey addition completed in the 1970s. Historical records indicate that the building initially served as the headquarters for the Co-operative Insurance Association, known as the Co-operators. The health unit took residence in the mid-1980s, following its acquisition by the Grey County board of health.

With walls measuring two feet thick, the building was designed for durability, contributing to its quiet atmosphere. Heathers emphasized the quality of the renovations, detailing that units feature hardwood finishes, kitchen crown moulding, solid-cored doors, and acoustic insulation in every wall. Residents will also benefit from controlled heating and cooling, in-unit washers and dryers, and additional security measures, including cameras and controlled access.

Heathers has invested approximately $3 million into the redevelopment. He explained that converting the space from office use to residential rentals is a financially sound decision, given the current market conditions. “The financing vehicles out there are way more attractive, and the cap rate environment; the way you value a dollar of cash flow, multi-family residential is far more coveted than office space,” he remarked.

Owen Sound is witnessing a broader trend of increased rental developments. Heathers attributes this shift to demographic changes and a rising cost of living, which have made renting a more viable option compared to purchasing a home. With mortgage rates climbing to around 5 percent, alongside continuous increases in construction costs, the rental market is adapting to meet demand.

The city has several other notable rental projects underway. Among them is the beginning of construction on Harbour West, located at 1144 1st Avenue West, which will feature 224 rental apartments across six four-storey buildings. The first units are expected to be ready for occupancy in about a year. Additionally, the first three of eight planned Skyline rental apartment buildings, aimed at providing 267 units at the former RCA factory site along East Bayshore Road, are set to welcome residents in the next 18 to 20 months. The entire project envisions a total of 712 rental apartment units.

As Owen Sound evolves, the transformation of the former Grey Bruce Health Unit building into The Edgewater marks a significant step towards addressing the growing demands of the residential rental market.