A vacant stretch of Bank Street in downtown Ottawa, boarded up after tenant evictions, is now listed for $14.5 million. The block, between Nepean and Lisgar streets, once housed Wallack's Art Supplies for 50 years and artists whose works are in the National Gallery of Canada. But after developers bought the four heritage buildings in 2022, eviction notices followed in 2023, displacing about two dozen tenants, many at risk of homelessness.
Evictions and Financial Troubles
John Bergeron, 68, lived in apartment No. 10 at 178 Nepean St. since 1981, paying $500 a month. In January, he says the sheriff gave him 10 minutes to leave. Manuel Cuá, 60, a former Canada Post worker who cares for feral cats, was out feeding cats at the time. Their building and the block are now empty, with the property offered under power of sale due to mortgage default.
A review of court filings by the Ottawa Citizen reveals that the development group behind the evictions—associated with Smart Living Properties and businessmen Tamer Abaza and Rakan Abu Shaar—was fending off creditors seeking over $65 million in loans and debts. The group's lawyers stress most lawsuits are resolved or near resolution, and the Bank Street project may be revived with talks with Arab Gulf investors.
Creditor Pursuits and City Oversight
Court documents show numerous creditors pursuing the group, including the City of Ottawa, which was owed $500,000 in property taxes on a different project, Dwell Hintonburg. Despite this, council approved Smart Living's zoning and heritage applications on Dec. 11, 2024, allowing evictions to proceed. Councillor Ariel Troster, who voted against, questioned: "If we're approving zoning for companies in financial disarray, is this leading to tenant displacement with no realistic prospect for building?"
The timeline raises questions about the city's power to assess developer financial capacity before approving tenant-displacing projects. Troster negotiated a memorandum of understanding requiring Smart Living to offer tenants $20,000 plus moving expenses, or $30,000 if they forgo the right to return, but many tenants objected.
Investor Losses and Legal Battles
Dr. Chamoun Chamoun, a cardiologist, loaned over $2 million to the group after being assured by Abaza of personal guarantees. In an affidavit, Chamoun said he was told "his personal wealth was more than sufficient to cover any amount borrowed." Abaza denies being guarantor. Chamoun's lawsuit seeks to recover $1.75 million, alleging the transfer of Abaza's Rockcliffe home to his wife was a fraudulent conveyance to shield assets. Abaza and his wife deny this, saying it was for estate planning.
Interest payments stopped in December 2024. Chamoun wrote to Abaza and Kuriakose: "I feel betrayed." He received no reply.
Tenant Resistance and Aftermath
Tenants formed the Bank Block Tenants association, staging protests outside Abaza's home. In August 2024, the Landlord and Tenant Board ordered tenancies terminated, with the vice-chair stating: "The financial viability of the project is not for this Tribunal to determine." Bergeron, who refused the MOU, found a new apartment but his rent tripled. He said: "We are living through the end of the world if this continues."
Asif Khan of Verona Urban Developments, now working to salvage the project, said tenant resistance caused 18-month delays that scuttled financing. The group is in talks with potential capital partners in the Arab Gulf states.
