Winnipeg-based Shindico Realty Inc. has sold Pembina Crossing, a major mixed-use development in the southwest part of the city, to local investor and manager LS Properties.
The fully leased 280,981-square-foot property at 1910 Pembina Hwy., which includes a 51,357-square-foot Winnipeg Regional Health Authority building, was managed by Shindico on behalf of two unnamed Canadian pension funds since 1998.
The sale price has not been disclosed.
Major tenants include Save-On-Foods, Staples, Dollarama and Best Buy.
“We’ve managed it, redeveloped it, added to it, built onto it, built new buildings there, maintained it for 25 years,” Shindico president Sandy Shindleman told RENX.
Although Shindleman was not able to identify the buyer due to confidentiality requirements in the contract, RENX was able to verify LS as the new owner. Shindleman was able to note the purchaser is a “local syndicator who raises money from investors and needs to have their pipeline filled up with new product.”
“It was a time to recycle capital for the sellers. So happy seller, happy buyer,” Shindleman added. “I think pension funds are just trying to recycle some capital at this time.
"There’s no product available in Winnipeg like this, of this quality, that’s been actively listed for sale. People from across the country have seen it.”
LS Properties and Green Valley Management are headed by president and CEO John Stroich, who has over three decades of market experience. LS invests in the multi-tenant residential, retail and industrial sectors which offer good locations and nearby infrastructure as well as attractive rent roll with the ability to continue to improve cash flow.
Extensive changes to Pembina Crossing
Some of the changes at Pembina Crossing included retail expansion, two pad sites, a grocery store, new façade and the medical building.
“The property was fully leased and it was pretty well fully developed because of the additions that we’ve made to it," Shindleman said. "We added four buildings to it, one a major extension and of course a new Save-On-Foods we built in . . . a government office building . . . a long-term lease for health services, health action centre, three storeys.
“We built two service strips with the usual suspects, insurance and Dairy Queen, and medical, dental, optical, all that kind of stuff. Those were just finished in the last few months. So it was in a good position to sell and the new people don’t have anything that they have to do. It’s all done.”
Shindleman said new retail real estate is slow to come to market in Winnipeg because it can take time for a developer to get an entitlement.
“High interest rates are not helping anybody and the construction hasn’t been competitive. So it adds up to be pretty costly to build new property,” Shindleman said.
“But we are building new property. We recycled the capital right away. We’ve got several additions to our Grant Park Festival shopping centre underway now. They’re piling on all sides of it, expanding tenants.
“The service retail, medical, etc., has been very strong. QSR (quick service restaurants) that are well-run and good franchises are always expanding and looking for new space or upgrading some new space . . . the Popeyes of this world, and they’re doing well.”
The property had gone through a previous metamorphosis as well.
“It was built as an enclosed mall probably around 1980 and was de-malled in the '90s," Shindleman explained. "We’ve been managing it since 1998. So it’s gone through a couple of major renovations and expansions."
Shindleman said there are many multiresidential projects and housing development being built in the vicinity of the plaza — currently about 1,500 to 1,600 units.
“We want to thank all the tenants that we have worked with at this great development over the last 25 years. We are proud to turn this property over to the new owners in great shape with a full complement of strong and successful tenants.” Shindleman said.
- With files from Don Wilcox