American real estate firm Hines and Oaktree Capital Management have purchased F1SRT TOWER, a 27-storey Calgary tower, for redevelopment.
The 708,354-square-foot Class B office building is only about 50 per cent leased. Hines and Oaktree plan to upgrade the building to Class A standards to provide current tenants (Encaca, Telus, TransCanada) more value for their rent.
“We are pleased to acquire this office asset where we have the ability to provide a compelling value proposition to our tenants,“ said Syl Apps, Hines managing director. “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.”
The upgrades will include a 34,000-square-foot redevelopment including a tenant lounge; café and food service area; an outdoor terrace; state-of-the art fitness and wellness centre; conference facility.
F1RST TOWER is located within the Downtown East submarket of Calgary, only to two blocks south of the upgraded Riverwalk. Neighbouring East Village will be upgraded with infrastructure improvements and private developments in the next few years.
Hines and Oaktree each invest in and manage upwards of $100 billion in assets and are headquartered in Houston, TX and Los Angeles, CA, respectively.