This graphic shows the location of the Longstreet Redevelopment Opportunity in Edmonton, which would be a partnership with First Capital Realty. (Courtesy IPA)

Institutional Property Advisors (IPA) is brokering deals for four Edmonton properties that have been drawing plenty of interest from investors.

The “Core Edmonton Portfolio” is comprised of three high-rise apartment projects containing 832 suites in five concrete towers: Oliver Place, Grand Central Manor and Riverside Towers. They also include more than 38,000 square feet of main floor commercial space.

Bidding is open for the portfolio until 3 p.m. MDT on June 12.

“We expect a lot of activity on them,” IPA senior managing director of investments Bradley Gingerich told RENX. “It’s a rare opportunity to purchase something like this.”

The other site, part of a separate transaction, is a redevelopment opportunity in partnership with First Capital Realty (FCR-T) at a retail site in the Oliver neighbourhood.

“Core Edmonton Portfolio”

Oliver Place is an 18-storey building on a 1.84-acre site at 10130 117 St. NW that was constructed in 1968. It includes: 234 suites; a four-storey above-grade residential parkade; surface commercial parking; and approximately 37,788 square feet of main floor commercial space. Tenants include Shoppers Drug Mart and Liquor Depot.

Grand Central Manor II & III is located on a 1.6-acre site at 10904 102 Ave., 10904 109 St. and 10903 103 Ave. NW. It features two 17-storey apartments constructed in 2002 that have 306 suites along with underground parking and a separate three-storey above-grade parkade.

Riverside Towers was built on a 2.3-acre site at 8610 and 8620 Jasper Ave. NW in 1971. It features: two 21-storey buildings with 292 suites; underground and surface parking; excess lands above the underground parkade; and an approximately 914-square-foot main floor commercial space occupied by a convenience store.

All three properties are within walking distance of the Brewery, ICE, Financial and Government districts in Edmonton’s core that offer an abundance of employment opportunities, retail, dining, entertainment and public amenities. There’s also immediate access to city-wide transit.

Gingerich said he can’t reveal the vendor’s identity but shared that the portfolio is owned by a high-net-worth family, not from Edmonton, “that’s looking to do some restructuring.”

Value-add opportunities

All of the apartments are close to fully occupied and have in-house property management. Gingerich said “they’ve been up-kept, but there’s never really been a formal upgrade” on any of the properties.

“There’s been a real market fervour across the country for this type of product, which is centrally located and well-maintained but has value-add potential,” said IPA senior vice-president of investments Paul Chaput.

“They’re really well-located properties that have been owned and operated in excess of two decades by the same group, and they could use an update. I think someone could do quite well by doing that.”

Chaput believes there’s potential to add $200 to $400 to rental rates per suite through upgrades.

“Longstreet Redevelopment Opportunity”

IPA is also brokering an opportunity to participate in a joint venture partnership with First Capital Realty to develop a mixed-use site in the residential Oliver neighbourhood. The property at 11215 to 11525 104 Ave. NW is part of the Longstreet Shopping Centre.

“Our mandate has been to take this to market with the intention of finding First Capital a partner for both the development and operation of the finished product,” said IPA senior vice-president of investments Bradyn Arth.

“They appreciate that bringing in a partner with development expertise, as well as residential management expertise, would allow them to synergize their efforts and ultimately produce a better and higher quality asset.”

The “Longstreet Redevelopment Opportunity” site is approximately 35,250 square feet and is currently occupied by a Red Robin restaurant. It has immediate proximity to existing and future transit options, retail, services, entertainment, post-secondary institutions and Edmonton’s downtown core.

“You have all the amenities of downtown and the 104 Avenue corridor, but you’re not in the concrete jungle itself,” said Arth.

Price not most important factor

There’s an open bid process with no firm deadline for expressions of interest. IPA is introducing First Capital to potential partners and, while price is important, it isn’t expected to be the most critical factor.

“We’re not just bringing in offers,” said Arth. “We’re bringing in groups for meetings to start a relationship.”

While Arth anticipates First Capital making a decision “in the next month or so,” he said development would likely not start for at least a year.

A design has been drawn up that conforms to existing zoning and would support 150,000 square feet of mixed-use space that could accommodate approximately 175 residential units with main-floor commercial space. New zoning would have to be obtained if the partners desire increased density.

“You get to partner with First Capital, an exceptional retail operator that’s willing to stay in the deal and improve the brand reputation of your asset and can dangle the carrot of future developments as well,” said Arth.

He noted his client has numerous similar sites across Canada which could benefit from intensification.

First Capital owns 166 properties in Ontario, Quebec, Alberta and British Columbia. Its assets combine for a gross leasable area of 25.4 million square feet of grocery-anchored, retail and office space with a total enterprise value of $9.9 billion.