ONE Properties and Vestcor have partnered to acquire 41 Business Park, a property in Nisku, just outside Edmonton, where they plan to develop approximately one million square feet of industrial space.

The greenfield site, which has been used as construction company Ledcor’s fabrication and module yard, was acquired for an undisclosed price. Avison Young brokered the deal.

The first phase of development will be comprised of two modern logistics buildings of 295,500 and 339,900 square feet, each with 40-foot clear height warehouse ceilings.

There will be a focus on energy efficiency and both buildings will be targeting LEED Silver certifications.

“We are actively pre-leasing and will move ahead with a spec build if a tenant is not found,” ONE Properties president and chief executive officer Darren Durstling said in an email interview with RENX.

“Pre-leasing will not be a prerequisite for us to move forward.” 

The 41 Business Park

ONE Properties will act as the development manager and then property manager once development is complete.

Occupancy is anticipated in the second quarter of 2024 for the first phase of the property, which is just south of Edmonton and offers access to major highways and amenities.

Ledcor will remain on the north portion of the site until late 2024, when the second phase of the development will begin. It will include two buildings of 144,100 and 225,500 square feet, respectively.

Like most major Canadian centres, Edmonton's industrial market is continuing to see reduced vacancy (below five per cent) and increases in leasing rates, which have topped $9 per square foot.

“The leasing fundamentals are strong,” said Durstling.

“We are seeing growth across distribution and e-commerce industries and smaller industrial tenants as well as a resurgence in the oil and gas industry.” 

The most recent major announcement in Edmonton was in October from Qualico Properties, which is developing a 500,000-square-foot distribution centre for Leon’s Furniture Ltd., in partnership with the nationwide retailer.

Other recent projects include one of the country’s largest distribution centres, a multi-level, 2.9-million-square-foot facility for Amazon developed by Toronto-based Panattoni Development Corp.

Panattoni also recently announced the leasing of a new 548,000-square-foot Edmonton facility to MTE Logistix.

ONE Properties and Vestcor

ONE Properties is a privately owned, integrated real estate investment firm that has been developing and managing a range of multiresidential, retail, office, industrial and mixed-use assets across Canada since 1987.

It has offices in Edmonton, Calgary and Toronto.

Fredericton-based Vestcor provides global investment management services to 10 different public sector client groups representing approximately $21 billion in assets under management at the end of 2021.

It also offers administration services to 11 public sector pension plans and four employee benefit plans. 

The investment in 41 Business Park is the first collaboration between ONE Properties and Vestcor. The property is Vestcor’s first acquisition in the Edmonton area.

- With files from Don Wilcox