Stantec Tower is Canada’s tallest commercial building outside of Toronto. The mixed-use tower includes 29 floors of commercial space for tenants including Stantec, PwC Canada and Dentons Canada LLP, as well as a Rexall pharmacy and Alberta’s only licensed food hall.
The deal, reportedly worth about $500 million, is the largest office transaction in Edmonton’s history in terms of dollar value.
SKY Residences, which comprise 483 residential units and 21,000 square feet of amenity space occupying floors 30-66 of the tower, are not included in the sale.
“We are very pleased to find a world-class buyer such as Deka Immobilien for the commercial portion of Stantec Tower,” said Katz Group CEO Jurgen Schreiber, on behalf of ICE District Properties, in the release.
“The interest shown by a global investor is strong validation of our vision for Edmonton as a vibrant, dynamic and prosperous city with the world-class ICE District at its core.”
Deka Immobilien is real estate investments arm within Deka Group and one of the largest globally active real estate funds in Germany.
ICE District Phase One nearly complete
Schreiber said a portion of the proceeds from the sale will be reinvested into ongoing work at ICE District.
“With over $2 billion in development near completion in Phase One, and a similar scale of investment envisioned for Phase Two, ICE District has proven to be the transformational project for Edmonton envisioned by Daryl Katz more than 10 years ago,” he explained in the release.
“This transaction provides an attractive return on investment to date, and frees up capital for reinvestment in Phase Two, as well as other international sports and entertainment initiatives.
“While ICE District Phase Two remains at an early planning stage, we anticipate a significant residential focus anchored by a large, vibrant green space and promenade, along with additional commercial and retail elements pushing continued development north of 104 Avenue.”
CBRE and RBC Capital Markets facilitated the transaction.
“World-class cities need world-class developers with vision to attract world-class investors, and Deka Immobilien’s purchase of Stantec Tower speaks to this international firm’s confidence in the importance of ICE District and the positive impact it will have on the rest of this city’s downtown core moving forward,” said Dave Young, the managing director for CBRE Edmonton, in a separate release.
ICE District, one of North America’s largest mixed-use sports and entertainment projects, began development in 2014 with the construction of Rogers Place, the award-winning home of the NHL’s Edmonton Oilers.
Rogers Place, which is now Canada’s third-busiest venue, opened in September 2016, followed by the Grand Villa Casino, the Edmonton Tower (a LEED-Gold, 27-story commercial office tower), and public amenities that include the 33,000-square-foot Ford Hall event space, the Downtown Community Arena and an all-season LRT corridor.
Stantec Tower opened in 2018 and contains about 650,000 square feet of office space, as well as 62,000 square feet of retail.
The JW Marriott Edmonton Ice District has also opened recently. The luxury hotel features 346 rooms, wellness programs and fitness centre, dining and 22,000 square feet of meeting and conference spaces.
The Legends Private Residences, opening in late fall 2019, holds 262 condominium units on floors 23 through 54 of the JW Marriott tower.
Soon to open is the ICE District Plaza, a 50,000-square-foot central gathering place in the heart of ICE District with an iconic outdoor skating rink, all-season heating and seating elements, and fully wired infrastructure to host large international events and year-round community programming.
Phase Two, to be anchored by a vibrant public green space and promenade, will have approximately 4,500 residential units, more than 300,000 square feet of retail/commercial space, and more than 750,000 square feet of office space.
At completion, it will comprise about 4.5 million square feet of space spread across 12 towers, ranging from 15 to 40 storeys, including the historical MacDonald Loft Building.
“Katz Group and ONE Properties’ vision for ICE District has created a fundamental shift in how our city is being viewed, nationally and internationally,” said CBRE’s Young in the release
“Deka Immobilien’s acquisition of Stantec Tower is a strong endorsement of that fact.
“ICE District’s first phase transformed our downtown, creating a vibrant and dynamic sports and entertainment epicentre.
“Phase Two will be equally as exciting as it pushes development to downtown’s north edge and brings a significant residential focus to the heart of the city.”
About ICE District Properties
ICE District Properties is a joint venture between Katz Group and ONE Properties to develop ICE District.
ICE District will be the largest mixed-use sports and entertainment district in Canada, delivering diverse entertainment and lifestyle offerings. The mixed-use development includes residences, premium office space, a hotel, entertainment and retail as well as Rogers Place.