Upfield Capital and Arrowleaf Real Estate have started construction on a new industrial development in Acheson, Alta., adjacent to a Home Depot distribution centre which the two companies acquired last October for $55 million.

Upfield co-founder Peter Edgar said extremely low vacancy rates for industrial space in the area located about 20 kilometres from downtown Edmonton spurred the move.

“We designed this freestanding industrial building specifically to cater to the needs of heavy industrial users in the area,” Edgar said.

“Vacancy rates in Acheson for this type of product are extremely low, and there are many businesses, such as steel fabricators, civil contractors and equipment sales, in need of this kind of built-to-suit warehouse space.” 

The companies expect to complete the building, which represents an investment of $22 million, by March 2027 and pre-leasing opportunities are available. 

Designed for flexibility

The new industrial building will sit on eight acres of land, next to the 206,000-square-foot distribution centre leased to Home Depot.

The site is accessible by 279 Street and is well located for major transportation routes including Highways 16, 16A and 60.

Upfield co-founder Rob Greer said developing the building was a "natural next step" after acquiring the distribution centre. 

"We saw an opportunity to unlock the potential of the adjacent land to deliver high-quality, flexible industrial space in a market where well-located, functional product remains in strong demand," he said. "We’re excited to bring this project forward with Arrowleaf and add to the region’s growing industrial capacity.” 

The 61,050-square-foot building has been designed for one or two tenants, with feature units starting at 26,400 square feet. It includes dock doors, grade doors, drive-through bays and knockouts for multiple additional doors of each kind, including on the sides of the building. 

Other features available to industrial tenants include:

• 28-foot clear height and precast construction;
• fenced and gravelled dedicated yard space for each tenant with direct access to the building;
• 10-ton crane readiness for the building; and
• 5-per-cent office buildout included with the space.

York Construction Inc. was selected as the general contractor for the project.

"We have a long history in Acheson and a strong belief in the fundamentals of this market," Arrowleaf executive managing director Andrew Kurbis said. 

"We were among the early investors and developers in the area, and we’ve seen firsthand how it has evolved into one of Alberta’s key industrial hubs. 

"With continued investment and major users like Amazon establishing a presence, Acheson is well positioned for long-term growth. This new development builds on our commitment to the market and responds directly to the needs of today’s industrial users."

Other interests near Edmonton

Upfield and Arrowleaf bought a $60-million purpose-built rental townhouse community in Edmonton in June from StreetSide Developments Edmonton.

The 181-unit Cornerstone at Uplands offers townhomes ranging from 1,098 square feet for three bedrooms to 1,430 square feet for four bedrooms. Rents start at $1,665 a month.

The community is located at 1035 Uplands Blvd. N.W. within walking distance of schools and grocery-anchored retail.

It's being developed in three phases. "We are 75 per cent leased in Phase 1 and look forward to getting started on Phases 2 and 3," Upfield co-founder Rob Greer told RENX.

About Upfield and Arrowleaf

Upfield Capital is a Vancouver-based real estate acquisition and asset management firm focused on building a long-term, diversified portfolio of high-performing real estate assets across Canada. Co-founded by Peter Edgar and Rob Greer, Upfield has a portfolio that spans industrial, rental housing and mixed-use developments. Upfield is backed by a network of high-net-worth and institutional investors.

Arrowleaf is a real estate investment firm managing over 2.2 million square feet of multifamily, industrial, retail and office properties across six provinces. With roots dating back to 1953, the firm is the real estate investment arm of a Vernon, B.C.-based private family enterprise that includes operating businesses in the domestic and international automotive/tire and the moving/logistics sectors (Kal Tire and BigSteelBox).