Despite the woes of these two retailers, there’s a lot to be optimistic about in Edmonton’s downtown. Its population of residents is growing, the Ice District continues to develop into a legitimate entertainment district and the Valley Line LRT to Mill Woods will come online next year, easing up on the construction and making downtown that much more accessible. The western leg of the line is in the procurement phase and is expected in five or six years. And a change of ownership may also be a welcome harbinger. Chicago- based Lasalle Canada Property Fund (LCPF) bought Edmonton City Centre and the three office towers that rise above it — TD Tower, Oxford Tower and Centre Point Place — from Oxford Properties last November for more than $300 million. The LCPF did not return requests for comment, but in an interview CEO John McKinlay gave to Real Estate News EXchange at the time of the purchase, he said the mall provided strong tenant depth, long-term liquidity and a diversified income stream. And it’s already been through the wringer. “Given what’s transpired in the global economy, and particularly in Alberta over the last 10 years, we very much consider this asset stress-tested more than most,” he said.
Patterson says the real prizes were the three towers, which are almost full and are all in the eastern half of the complex. He wouldn’t be surprised to see the new owners tear down the low-density western half, the one that houses the old Bay, and make a street-facing, pedestrian- friendly, engaging stretch of downtown.
