Longueuil Gets $200M Boost with 525-Unit Rental Project

LONGUEUIL, QC – December 19, 2025 – A consortium of prominent real estate firms has announced a $200 million investment to construct a 525-unit purpose-built rental project in Vieux-Longueuil, a significant development aimed squarely at the region's critically undersupplied housing market. The project, led by developer Groupe HD with financial partners Capital Property Developments (CPD) and Kastello, will rise at 550 Roland-Therrien Boulevard, promising to reshape a key local artery and deliver a substantial number of new homes.

Construction is slated to begin in 2026 on the site, which boasts a buildable area exceeding 450,000 square feet. This large-scale redevelopment is poised to inject much-needed supply into a market grappling with soaring demand and record-low availability.

A Response to a Market Under Pressure

The announcement comes as Longueuil and the entire South Shore face a severe housing crunch. According to the latest data from the Canada Mortgage and Housing Corporation (CMHC), the rental vacancy rate in Longueuil plummeted to a staggering 0.3% in October 2025, far below the 3% threshold widely considered to represent a healthy, balanced market. This extreme scarcity leaves tenants with few options and puts immense upward pressure on rents.

With nearly half of Longueuil's households—47.7%—being renters, the lack of available units is a pervasive issue affecting a large segment of the population. While average rent increases in the city have been modest compared to the Greater Montreal area's 7.2% surge in 2025, the underlying problem is a dire lack of listings. This project, with its 525 units, represents one of the most significant single infusions of rental supply for the city in recent years, directly addressing the supply-side of the housing equation.

"This project is built on a clear vision: to create an ambitious, well-anchored residential complex aligned with real market needs," said Alexandra Kau, President of Capital Property Developments (CPD), in a statement. The sentiment was echoed by Kastello, which aims to play a meaningful role in enhancing the local residential offering.

"Kastello is committed to developing innovative and responsible projects that reflect the vitality of the region and contribute to its long-term growth," stated Éric Fortin, President of Kastello.

A Strategic Alliance of Real Estate Powerhouses

The project's strength lies not only in its scale but also in the combined force of its backers. The partnership brings together three distinct but complementary players in Quebec's real estate landscape.

Groupe HD, the project's lead developer, is a major force in the province, managing over $3.5 billion in assets and a portfolio of more than 9,500 residential units across various project types. The firm will also leverage its in-house construction division, Construction Praxis, as the general contractor, ensuring integrated oversight from conception to completion.

"This site reflects our ambition to develop projects on high-potential locations that offer strategic positioning and a dynamic urban context," noted Thomas Dufour, Co-President of Groupe HD. "This approach allows us to deliver sustainable developments that create lasting value for communities."

Capital Property Developments (CPD) brings over 40 years of experience, evolving from a retail business into a diversified real estate developer and investor. Operating as a real estate family office, CPD's strategy emphasizes strategic investments in multi-residential projects with a long-term, legacy-driven approach.

Kastello, founded in 2018 by the well-known Fortin family of Couche-Tard fame, specializes in residential real estate investment with a focus on long-term management. Their involvement signals a commitment to stable, lasting value rather than short-term speculation. The project's financing is secured by MCAP, one of Canada's largest independent mortgage finance companies.

Urban Renewal on Roland-Therrien Boulevard

The development is a cornerstone of the residential transformation envisioned for this part of Longueuil. It aligns directly with the City of Longueuil's Special Urban Planning Program (PPU), a municipal framework designed to guide the revitalization of strategic sectors. Longueuil's municipal administration, under Mayor Catherine Fournier, has been actively fostering collaborations with developers to accelerate housing construction.

The location at 550 Roland-Therrien Boulevard is particularly strategic. It sits in close proximity to major employment and knowledge hubs, including aerospace giant Pratt & Whitney Canada, which employs over 5,000 people, and Cégep Édouard-Montpetit, with a daily population of nearly 7,000 students. This proximity is intended to foster a sustainable, well-connected living environment where residents can live closer to where they work and study, reducing commute times and reliance on cars.

Infrastructure in the area is also being upgraded to support growth. The city is investing in modernizing traffic lights along Roland-Therrien Boulevard and has included sections of the artery in its 2025 repaving program, signaling readiness for increased density.

Questions of Affordability and Community Impact

While the addition of 525 units is a clear win for housing supply, it also raises questions about affordability and the project's broader community impact. The press release highlights the creation of "modern, well-designed living environments" but makes no mention of designated affordable or social housing units within the complex.

Housing advocacy groups like FRAPRU have repeatedly called for new developments to include a significant portion of non-market housing to prevent gentrification and ensure that new supply benefits residents across all income levels. With a quarter of Longueuil households already struggling to find housing they can afford, the rental rates of these new units will be a key point of interest for the community.

The scale of the development will also place new demands on local services, from public transit to schools and healthcare facilities. While the area is already a major activity hub, the arrival of hundreds of new households will test the capacity of existing infrastructure.

Despite these considerations, the project represents a decisive step forward in addressing Longueuil's housing deficit. As construction gears up for 2026, all eyes will be on this partnership of real estate titans to see how their ambitious vision for urban renewal materializes and shapes the future of Vieux-Longueuil.