Ottawa office-to-residential conversion placed into receivership

DOV (495 Richmond) Limited, the owner of a seven-storey office building at 495 Richmond Road in Ottawa, was placed into receivership on September 17, 2026, on application by secured lender Addenda Capital Inc., with Goldhar & Associates Ltd. appointed receiver. The property, which contained approximately 106,195 square feet of rentable space when it was acquired in 2019, was financed with a first mortgage loan of up to $30.95 million from Addenda.

The loan originally matured in December 2024 and was extended several times, most recently to September 7, 2026 to give DOV time to refinance. Approximately $25.64 million of principal remained outstanding in March. During the final extension period, DOV failed to make interest payments due in June, July and August, prompting Addenda to demand repayment of approximately $25.8 million plus costs and continuing interest. The debt remains unpaid.

The receivership was also driven by concerns over the condition of the property. According to Addenda, an inspection by Brentwood Restructuring Services found that DOV had begun converting the building from commercial office space to residential rental units without the lender's consent. The interior had been substantially demolished, leaving principally the concrete structure and building envelope intact. The inspection also identified unresolved fire and elevator issues, unpaid contractors and trades, and concerns that equipment and leasehold items had been removed or discarded. Addenda also said it had not received satisfactory confirmation that the property was appropriately insured or that municipal taxes were current.

DOV did not oppose the receivership, although its counsel advised the Court that it did not agree with all of the allegations in Addenda's materials. Justice Dietrich found that a court-supervised process was appropriate given the matured debt and condition of the property, and said the receiver will be able to secure the building, investigate the status of the demolition, construction, permits, taxes, insurance and potential liens, and conduct a realization process if necessary.

Reconstruct LLP acts for Addenda Capital Inc., Paliare Roland Rosenberg Rothstein LLP acts for DOV (495 Richmond) Limited, and MLT Aikins LLP acts for Goldhar & Associates Ltd. Cara Partners is financial advisor to Addenda.