Van. Exchange tower eyes partial hotel conversion

Van. Exchange tower eyes partial hotel conversion

Credit Suisse’s spec-built $200-million Exchange office tower in downtown Vancouver – now nearly complete and nearly vacant – will see a third of its space converted to a 202-room hotel if it receives city rezoning approval. “That could come at any time,” said Mark Chambers, executive vice-president of Jones Lang LaSalle (JLL), the commercial broker on the 369,000-square-foot tower.

Western Investor

False Creek Flats a lost opportunity: Developers

Vancouver city council unanimously voted to proceed with plans for the zoning and development of False Creek Flats, considered the city’s last frontier for high-density real estate development. But condo developers say the city “lost an opportunity” to allow more housing, with a plan they say will “build a suburban-style office park” in a prime city setting.

Business In Vancouver

16 York breaks ground in Toronto’s south core

A downtown Toronto office tower that broke ground at 16 York St. on Wednesday is the first to be built on spec by Cadillac Fairview since the company was purchased by the Ontario Teachers’ Pension Plan in 2000. CF is building the $479-million, 32-storey building in financial partnership with the Ontario Pension Board.

Property Biz Canada

Developers sought for K-W mixed-use transit hub

A request for qualifications has been issued for a large mixed-use transit hub in Kitchener, Ont., to play a major role in the evolution of the area and the “Toronto-Waterloo Region Corridor.” The Region of Waterloo will sell a four-acre property to the selected developer, which will then build both the transit hall and accompanying buildings.

Property Biz Canada – Property Biz Canada – Property Biz Canada

Zehr unveils plans for Kitchener’s ‘urban village’

Zehr Group has unveiled plans for a massive “urban village” that would add almost 1,000 residential units and one million square feet of new buildings just outside Kitchener’s downtown. The development would put up five buildings, including a 14-storey apartment, three condo towers ranging from 26 to 30 storeys, and a mid-rise office/retail building and is expected to cost up to $500 million.

Waterloo Region Record

SkyCity investors owed interest as bonds default

Investors who have put money into the startup costs of a massive downtown Winnipeg development are waiting on interest payments after finding out their bonds are in default, according to documents obtained by CBC News. There are also questions about the actual value of the land on which the proposed SkyCity Centre development is to be built.

CBC – Property Biz Canada

Crown’s first female partner discusses deals, NAIOP

Emily Hanna began her real estate career at Allied Properties REIT (AP.UN-T) in 2007 before joining Crown Realty Partners, where she’s been investments partner since July 2013. Hanna is the only female partner at Crown and just the second woman to serve as president of the Greater Toronto chapter of the Commercial Real Estate Development Association. 

Property Biz Canada – Property Biz Canada – Property Biz Canada – Property Biz Canada

Agellan buys eight Chicago-area properties

Agellan Commercial REIT (ACR.UN-T) is spending $28 million to expand its industrial property holdings in the Chicago area. The eight properties are spread throughout suburban Chicago and comprise approximately 314,000 square feet of gross leasable area. 

Property Biz Canada – Property Biz Canada

Limit overlap on TO real estate portfolio: Tory

City council could start untangling this week how it manages its $27-billion real estate portfolio. Mayor John Tory says the move would limit overlap between the 24 agencies that currently have their fingers in the city’s real estate pie. It would also help cut down on squabbles between departments that sometimes have competing interests for city-owned properties.

Toronto Sun

PIRET capitalizing on red hot U.S. industrial

In April, Pure Industrial Real Estate Trust (AAR.UN-T) of Vancouver closed an $85 -million deal on its purchase of the fully leased Cedar Port distribution centre in Houston, part of an acquisition binge PIRET has been on for the past year. PIRET is the only Canadian REIT specializing in U.S. industrial real estate, but it may soon have Canadian competition.

Western Investor – Property Biz Canada – Property Biz Canada

Slate Retail REIT purchases N.C. shopping centre

Slate Retail REIT (SRT.U-T) announced it has entered into a binding agreement to acquire Mooresville Consumer Square for US$51.3 million ($109 per square foot). The property is 97per cent occupied, is Walmart-anchored and is located in the Charlotte Metropolitan Statistical Area. Closing is expected to be completed in the second quarter of 2017 and remains subject to customary closing conditions. 

Marketwired – Marketwired

Sale-leaseback transactions on the rise

Commercial sale-leaseback arrangements appear to be rising, on the back of strong valuations for commercial properties. Avison Young has listed 1476 West 8th Avenue, home to the Girl Guides of Canada, and 1985 West Broadway, owned by Wawanesa Mutual Insurance Co., touting the properties’ proximity to the rapid transit line planned for Broadway from VCC-Clark station to Arbutus Street.

Business In Vancouver

Quartier DIX30 welcomes iA Financial Group

In July, iA Financial Group will open its new iA-VAG1 office in Quartier DIX30. Occupying two floors of the soon-to-be-completed 16-storey building in the dynamic Square, this new address will provide iA-VAG’s team of 200 professionals with a leading work environment in the sought-after and vibrant downtown that is Quartier DIX30 with 24 million visits every year.

Canada Newswire – Property Biz Canada – Property Biz Canada

Cineplex eyes smaller markets for Rec Rooms

Cineplex (CGX-T) is planning to expand its Rec Room complexes that include eateries, live entertainment and games, across Canada, including in smaller cities, as it continues to diversify its business. “We’ve gone from a movie company to an entertainment company,” said CEO Ellis Jacob. Cineplex plans to open 10 to 15 Rec Rooms over the next several years in major cities. 

Victoria Times Colonist

Phillips Edison entities to form mega-REIT

Phillips Edison Grocery REIT I (PECO I) is acquiring the real estate assets and third-party asset management business of its sponsor to create a pure-play grocery-anchored centre REIT with an enterprise value of $4 billion. The cash-and-stock deal for Phillips Edison Limited Partnership (PELP) is valued at approximately $1 billion, subject to closing adjustments.

GlobeSt.com – CoStar Group – Business Wire – Business Wire

Market Trends and Research

High rents stripping Queen Street West of its ‘heart’

Terry Ham bustles around his Queen Street West salon, Good Hearts Salon & Spa, with a wide grin as the music blares, even though just months ago he was locked out of his other storefront a block away. The 58-year-old small business owner saw his rent increase from around $8,000 a month in 2010 to about $14,000 in October 2016.

CBC – CBC

Bohemia returns to Winnipeg’s Osborne Village

Osborne Village fans will soon have a new place to grab a meal or drink, and somewhere else to work out. Little Goat Food & Drink, a new restaurant and lounge boasting a “bohemian chic” look, is scheduled to open in June or July in the former Black Rabbit Bistro & Lounge space at 135 Osborne St.

Winnipeg Free Press – Global News

Raise a glass to winery architecture

Visitors to Mission Hill Winery in West Kelowna pass under a massive archway that frames the courtyard and buildings beyond. Suspended at the apex of the archway is a 5,000-kilogram limestone cube, etched with the winery founder’s coat of arms. It’s an impressive welcome to the award-winning hilltop winery, a mainstay of B.C. wine production for 35 years. 

Globe and Mail

Real Estate Companies

AY brokers sale of D.C.-area industrial assets

Avison Young arranged the sale of two flex-industrial buildings in Chantilly, Va. Beckham Gumbin Ventures purchased the assets from CIM Group for the combined purchase price of $19.9 million US. The buildings totalling 245,888 square feet of office and warehouse space are situated within Sullyfield Business Park:

CP Executive

Home Capital draws further funds from line of credit

Home Capital Group Inc. (HCG-T) says it has drawn down a further $250 million this week from its emergency line of credit to repay deposit notes due Wednesday. That leaves the Toronto-based mortgage company with $350 million left from a $2 billion line of credit provided by the Healthcare of Ontario Pension Plan late last month. 

Winnipeg Free Press – Globe and Mail (Subscription required)

Firm Capital announces filing of final prospectus

Firm Capital American Realty Partners Corp. (FCA.U-X) announced the filing of a final prospectus for the public offering of units of the corporation, as previously announced in the corporation’s press release dated May 10, 2017. The corporation has filed a final prospectus in each province, other than Quebec, in connection with the offering at a price of $10.24 per offered unit. 

Canada Newswire

Real Estate Investment Trusts

Partners REIT announces rights offering

Partners Real Estate Investment Trust (PAR.UN-T) will issue to each of the holders of its outstanding units the right to subscribe for additional units of the REIT.  If all of the rights are exercised, the REIT expects to raise net proceeds (after deducting expenses) of $35,147,244.

Marketwired

PROREIT announces public offering; property acquisitions

PROREIT  (PRV.UN-X) announced it has entered into an agreement to sell to a syndicate of underwriters 8,900,000 trust units at a price of $2.25 per unit for gross proceeds to the REIT of approximately $20 million. The REIT has also entered into a binding conditional agreement in respect of four of its previously announced acquisitions of four retail properties in Québec.

Canada Newswire – Property Biz Canada – Property Biz Canada – Property Biz Canada

REIT INDEXPLUS announces normal course issuer bid

REIT INDEXPLUS Income Fund announced it has filed a notice with the Toronto Stock Exchange and received its approval to make a normal course issuer bid for its units through the facilities of the TSX.  This NCIB will commence on May 25, 2017 and will terminate on May 24, 2018.

Canada Newswire

Retail

Lowe’s results disappoint in contrast to Home Depot

Lowe’s Cos Inc (LOW-N), the No. 2 U.S. home improvement retailer, reported quarterly profit and comparable sales that missed analysts’ estimates, in contrast to the strong results reported by larger rival Home Depot Inc (HD-N) last week. Lowe’s shares were down four per cent at $79 in premarket trading on Wednesday. 

Reuters

Wal-Mart’s online therapy may revive ailing retail

Wal-Mart’s (WMT-N) online therapy may help revive ailing retailers. The $242 billion giant is starting to reap the benefits of embracing e-commerce while shares in digital laggards like Macy’s and J.C. Penney plummeted after poor results. Unless they follow the behemoth’s lead, they’re likely to hand more market share to Wal-Mart and internet megastore Amazon.

Reuters – Market Realist

Renovation and Restoration

Vancouver to revive Hogan’s Alley community

The City of Vancouver has hired Zena Howard, an architect at Perkins+Will in North Carolina who specializes in cultural facilities, to help revitalize Hogan’s Alley. Hogan’s Alley was a four-block dirt lane that formed the nucleus of Vancouver’s first concentrated African-Canadian community. Residents were gradually displaced in the city’s attempts to revitalize the area from the 1930s onwards. 

CBC

Infrastructure

Edmonton councillors push for full LRT buildout

Southwest Edmonton councillors lobbied to get LRT built in one shot all the way to the city’s south boundary Tuesday as officials promised a detailed look at southwest congestion. Heritage Valley is being planned as a high-density urban village centred on an LRT terminal, but city officials aren’t planning to get LRT there until at least 2039.

Edmonton Journal

Contractor to to turn over Confederation Line in one year

In exactly one year — May 24, 2018 — the city’s light-rail contractor, Rideau Transit Group, is expected to hand over the keys to Ottawa’s brand new, $2.1-billion Confederation LRT Line. Nearly five years in the making, it will be the busiest LRT line in North America on its first day of service, say boastful politicians and senior city officials.

Ottawa Citizen

High-speed train ‘an interesting project’ for CIB: Feds

“The proposed high-speed rail link between Toronto and Windsor is an interesting project which we will examine alongside our municipal and provincial partners to see how it may fit with our programs and as a project for the Canadian Infrastructure Bank (CIB) . . . ” said Brook Simpson, press secretary for federal infrastructure minister Amarjeet Sohi.

Financial Post – CBC – Toronto Star

Other

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