The market for distressed properties in Regina is tightening up.
Mitchell Developments Ltd. is finishing up the tenanting of a pair of underused downtown buildings that it purchased three years ago.
A 65,000-square-foot office building, which had a vacancy rate of more than 40 per cent in 2013, has had its main floor upgraded and turned over to a couple of restaurant tenants to “give it life.” Another floor is being renovated to suit a third tenant.
The adjoining property, the 40,000-square-foot home to Canada’s first Royal Canadian Legion, has had its auditorium and lounges converted into parking for its neighbour. The remaining space has been upgraded for the veterans and leased back to them at a cost of $10 per year.
Mitchell’s investment in the two buildings is about $5 million.
Company president Mitch Molnar said five years ago he would have had more than enough potential tenants, but the market is softening.