archited
Senior Member
All of the real estate market activity in downtown is probably scaring them or maybe they see a way to turn a fast buck without any risk.
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Downtown Real Estate
- Thread starter Daveography
- Start date
Kaizen
Senior Member
4 Edmonton Office Towers Just Sold for Surprising Prices
Posted on April 6, 2017 by Edmonton Commercial
When a large, national Real Estate Investment Trust decided to offload their Alberta assets, they wasted little time disposing roughly $200 million worth of office buildings. These sales come on the heels of writing down $748 million for their portfolio in Q2 of last year.
The decision to sell was likely driven by the large amount of office vacancy in Calgary. Jane Gavan, the REIT’s CEO, thinks the vacancy problem will persist for awhile still:
HSBC Bank Place: 10250 – 101 Street. 324,767 square feet. Sold for $35,000,000. Previously sold in December 2010 for $83,400,000.
Enbridge Place: 10130 – 103 Street. 263,660 square feet. Sold for $25,000,000. Previously sold in April 2010 for$90,850,000.
HSBC Building: 10055 – 106 Street. 118,747 square feet. Sold for $12,250,000. Previously sold in August 2011 for$28,570,000.
Milner Building: 10030 – 104 Street. 177,645 square feet. Sold for $7,500,000. Previously sold in August 2011 for$40,170,000.
Those four buildings alone declined $163,240,000 in a matter of 6 – 7 years. It must be distressing for owners of similar properties, however, we do not believe these recent sales to be indicative of the market as a whole. This was a case where a seller decided they wanted to lower their exposure to a particular market and did so in quick order. It will undoubtedly distort the market for other downtown office towers, but we do not believe it will spill over into smaller buildings or other asset classes.
Source:
The Network
Posted on April 6, 2017 by Edmonton Commercial
When a large, national Real Estate Investment Trust decided to offload their Alberta assets, they wasted little time disposing roughly $200 million worth of office buildings. These sales come on the heels of writing down $748 million for their portfolio in Q2 of last year.
The decision to sell was likely driven by the large amount of office vacancy in Calgary. Jane Gavan, the REIT’s CEO, thinks the vacancy problem will persist for awhile still:
While much attention has been drawn to Calgary’s vacancy rate and the foreseeable challenges in that market, the REIT also elected to include a number of office buildings in Edmonton into the disposition. Data has started trickling in from a few of the recent transactions and the prices are quite startling.
HSBC Bank Place: 10250 – 101 Street. 324,767 square feet. Sold for $35,000,000. Previously sold in December 2010 for $83,400,000.
Enbridge Place: 10130 – 103 Street. 263,660 square feet. Sold for $25,000,000. Previously sold in April 2010 for$90,850,000.
HSBC Building: 10055 – 106 Street. 118,747 square feet. Sold for $12,250,000. Previously sold in August 2011 for$28,570,000.
Milner Building: 10030 – 104 Street. 177,645 square feet. Sold for $7,500,000. Previously sold in August 2011 for$40,170,000.
Those four buildings alone declined $163,240,000 in a matter of 6 – 7 years. It must be distressing for owners of similar properties, however, we do not believe these recent sales to be indicative of the market as a whole. This was a case where a seller decided they wanted to lower their exposure to a particular market and did so in quick order. It will undoubtedly distort the market for other downtown office towers, but we do not believe it will spill over into smaller buildings or other asset classes.
Source:
The Network
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Member Bio
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Looks like Aurora is also moving in.
https://www.linkedin.com/feed/update/urn:li:activity:6532349904780693504/
https://www.linkedin.com/feed/update/urn:li:activity:6532349904780693504/
Kaizen
Senior Member
^ Great news!
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Saw some images of proposed improvements to the front of what's now called the 103 Street Centre. Can't share them unfortunately but looks like they're adding two patios fronting 103 Street, at least one of which will be for a restaurant/coffee shop/etc. I'm guessing La Prep would get first dibs on that space as they are already a tenant. The second appears to be a more private amenity space for an office tenant but looks like it could easily be used for another food service if they could find one more.
Member Bio
- Joined
- Sep 22, 2015
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- 23,075
- Location
- Edmonton, Alberta, Canada
Member Bio
- Joined
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- Messages
- 10,218
- Reaction score
- 23,075
- Location
- Edmonton, Alberta, Canada
OverheardatYEG
Active Member
Woah that will leave some major space to be filled. They have lots of time to fill it.
Kaizen
Senior Member
Positive growth, should work out well I would think.
KyleBlanchett
Active Member
Jobber is relocating to the former Enbridge tower on 103 street and Jasper ave
KyleBlanchett
Active Member
First Capital is looking for a development partner to take a section of Longstreet shopping centre on 104 Ave to build a residential tower where currently is gravel parking lot
OverheardatYEG
Active Member
@KyleBlanchett It’s half a parking lot half a red robin on 104ave. They have very basic renderings available I’m not opposed to the style they are proposing.
KyleBlanchett
Active Member
Avison Young will be moving out of Bell Tower.
OverheardatYEG
Active Member
@KyleBlanchett I saw their space go up gorgeous space! Where are they moving too? Any idea?