Calgary’s First Tower has been purchased by U.S. investors Hines and Oaktree Capital Management in a $105 million deal said to be the second-largest commercial transaction in Canada in the second quarter of this year.
The two U.S.-based firms announced the acquisition in September – Oaktree on behalf of a “subsidiary of real estate funds” it manages.
“We are pleased to acquire this office asset where we have the ability to provide a compelling value proposition to our tenants,” Hines managing director Syl Apps said in a prepared statement. “As a firm, we believe in, and are committed to, the City of Calgary with First Tower being Hines’ second office acquisition during the recent energy downturn.
Previous owners H&R Real Estate Investment Trust and Dream spent $17 million upgrading the 27-storey office, Class B tower.
The new owners plan on investing significant capital into the building to bring it up to a Class A standard, according to a Hines statement.
The 708,354 square feet tower is 51 percent leased to tenants such as Encana, TransCanada and Telus.
Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 201 cities in 24 countries. The company has approximately $111 billion of assets under management and 108 developments currently underway around the world.
From | HM Commercial Group, Macdonald Realty Kelowna. HM Commercial agents Jeff Hudson and Marshall McAnerney report the following sales:
DEAL | Waterfront RV Park and agricultural land parcel totalling 44 acres. Landry Crescent, Summerland. Price: $8 million.
DEAL | Two apartment buildings totalling 26 units with adjoining 10,454-sqaure-foot lot. Bertram Street, Kelowna. Price: $6 million.
DEAL | More than an acre of development land located near Okanagan Lake. Lakeshore Road, Kelowna. Price: $4.9 million.
DEAL | 11,120-square-foot, one-storey retail building with 18 parking stall. Dougall Road, Kelowna. Price: $1.3 million.
From | Cushman & Wakefield, Vancouver. Cushman agent Harpreet Singh reports:
DEAL | 12.56-acre residential development site across two land parcels. Mt. Lehman Road and Cardinal Avenue, Abbotsford. Price: $26 million.
From | NAI Commercial Okanagan. NAI agents Mike Geddes and Jeff Hancock sold the following:
DEAL | 12,360-square-foot corner lot zoned for high-rise, mixed-use development, Water Street, Kelowna. Price: $1.9 million.
NAI agent Michael Marckwort sold:
DEAL | Two commercial buildings totalling 89,056 square feet, with potential to be redeveloped to residential upon rezoning. Victoria Street, Kamloops. Price: $1.8 million.
From | Nationwide Realty Corp., Surrey. Nationwide agents Ray Arneja and AJ Jaswal report:
DEAL | 40-unit motel situated on a 33,570-square-foot lot. Columbia Street, Kamloops. Price: $2.6 million.
From | Frontline Real Estate Services Ltd., Langley. Frontline agent Mike Harrison sold the following:
DEAL | 2.36-acre townhouse development site near Willoughby Town centre. 80 Avenue, Langley. Price: 8.07 million.
From | Varing Marketing Group, HomeLife Glenayre Realty. Agent Joe Varing reports:
DEAL | 261-acres of agricultural land with mountain views and assess to U.S. border. Bench Road, Chilliwack. Price: $6.1 million.
From | CBRE Edmonton. CBRE agent Bradley Gingerich sold:
DEAL | Residential development site totalling 45,800 square feet near the North Saskatchewan River. Clifton Place, Edmonton. Price: $9 million.
From | Avison Young, Vancouver. Avison Young agent Chris Wieser reports the following.
DEAL | 108-suite apartment complex of three buildings on 2.49 acres, Kelowna. Price: $16.6 million.