A class-A office tower in downtown Calgary which has basically sat vacant since 2019 is getting new life with the renovation of its two lower floors and new leases bringing tenants to 10 of its 37 storeys.

801 Seventh, formerly known as the Nexen building, recently went through a large-scale revitalization to transform it into a state-of-the-art, contemporary office destination.

Aly Lalani, executive vice-president and partner with Colliers in Calgary, which is leasing the building, said the more-than-600,000-square-foot tower offers a unique opportunity for tenants seeking quality space in the west end of the city’s core.

“We have no specific tenant in mind. It will be a cross-section of all tenants you see in the downtown core and suburban office market. That can be oil and gas producers, energy service companies, engineers, professional services or educational users. A wide range,” he said.

“Suburban tenants have taken some interest in this building and with the building being on the west side of the downtown core it’s an easy step into the downtown market. We’re finding from a lot of tenants that employees want to be in the mix and near amenities. Downtown is where you can find all that.

“As it pertains to tenants already in the core, congestion and traffic have picked up again. And so, tenants from the core are looking at the west end as well.”

Two tenants to occupy 9.5 storeys, Annex building

The building, which is connected to the city's +15 indoor pedestrian network, sits on the main downtown LRT line with stations for both directions right at its doorstep.

“We have completed two leases, one floor with a data centre, and another eight-and-half floors plus the full Annex building with another tenant. At this point, it’s an undisclosed tenant. We are now focusing on marketing the building from floor 14 up. There is approximately 450,000 square feet of available space,” Lalani said. “I believe we’ll be able to speak about the larger transaction we have completed towards the end of March.”

Lalani said the owner, Ursataur Capital Management, a private equity firm based in Toronto, bought the property more than a year ago from OPTrust and some private families in Calgary. Ursataur has also partnered with Aspen Properties in acquiring the Ampersand and The Edison from the Public Service Pension Plan.

The building became vacant in 2019 when energy company Nexen (now known as CNOOC Petroleum North America) moved to another downtown location in the core.

“After the building sold, the new ownership group wanted to put their stamp on the building and modernize it,” he said. “The building now has a more welcoming presence and environment for tenants.

"A prevailing trend employees are looking for while being at the office is flexibility in work, the building now has numerous areas where employees can work and meet that is outside of the four walls of their office space.”

The renovations to 801 Seventh

With the renovations, the main floor and +15 level are connected by a new freestanding spiral staircase. The main floor lobby includes an impactful digital Artscape, currently the largest 8K screen in Canada.

The 8th Avenue side of the building has seen the transformation of the winter garden into a treed space featuring a social staircase, amphitheater, seating areas, Harvard tables and two conference rooms for tenant use.

The building offers up to 622,170 square feet of contiguous office space, immediate access to the LRT line, an above-average parking ratio, 24-hour manned security and food services.

There’s also a 19,000-square-foot fitness facility with large locker rooms, three studios and extensive cardio and strength training areas.

A conference centre and tenant lounge are currently being constructed.

The food court has a coffee shop as well as four spaces for food vendors, two of which are leased.

“801 Seventh checks all the main boxes tenants are looking for right now,” Lalani said.

Tower an award winner for design

The 37-storey office tower, built in 1982 and winner of the Governor General’s award for architecture, is also situated right beside the recently renovated Century Gardens Park which includes a basketball court, a splash park and an amphitheater space.

“The market is fairly active. It’s the most active market in Canada," Lalani said. "A lot of movement from building to building is what we’re seeing. Buildings with amenities seem to get most of the attention. You are seeing tenants in the suburban markets looking downtown.

“You are still seeing tenants from other markets considering Calgary as well.”

Building naming and some signage rights are available to potential tenants.