Ontario Construction News staff writer
OTTAWA – The National Capital Commission has finalized a long-term lease agreement with Nesting Ground and Ottawa Community Housing (OCH) to transform a vacant 0.89-hectare federal site into a transit-oriented affordable housing hub.
The agreement provides a leasehold interest of up to 99 years for the property at 1460 Riverside Dr. and represents a foundational project under the federal Lands for Homes strategy. The development is being led by Nesting Ground in a strategic partnership with Windmill Developments and OCH.
The project is slated to deliver a minimum of 220 residential units near the Hurdman LRT station. Under the terms of the federal agreement, at least 30 per cent of the units must remain at below-market rents for the full century-long duration of the lease.
The site is currently zoned as Transit-Oriented Development, a designation that permits significant vertical density and eliminates traditional minimum parking requirements to encourage public transit use.
According to January 2026 filings with the Canadian Impact Assessment Registry, the construction scope includes soil remediation and site preparation on the vacant urban lot prior to excavation. Design specifications, guided by Nesting Ground’s sustainability focus and Windmill’s development expertise, are intended to meet or exceed federal net-zero ready standards. This includes high-performance building envelopes and integrated municipal servicing upgrades to support the high-density residential load.
While a final budget has not been publicly released, industry benchmarks for mid-to-high-rise construction in the Ottawa market place the estimated hard costs between $95 million and $120 million. The project is moving through a streamlined approvals process following a February 2026 framework agreement between the City of Ottawa and the NCC aimed at reducing planning delays.
Federal authorities and the Canada Mortgage and Housing Corporation initiated a final project assessment earlier this year. The development team is currently finalizing the site plan for municipal submission. Major structural construction is tentatively scheduled to begin in late 2026, with a projected occupancy window for 2028.
By utilizing a 99-year lease rather than a land sale, the NCC ensures the property remains a public asset while providing the development partners with the long-term security required to secure low-interest financing through the federal Affordable Housing Fund.
The Riverside project is the first of 10 NCC properties listed in the Canada Public Land Bank, which federal officials estimate could eventually yield nearly 7,600 new units across the capital region.
