Grosvenor Americas acquires office/retail building in Calgary
Grosvenor Americas has acquired 1520 Fourth Street in Calgary’s Beltline district through Avison Young Commercial Real Estate. This 10-storey, 106,000-sq.-ft. office building includes 24,000 square feet of retail space and a 34,000-sq.-ft. surface parking lot that can be developed in the future. This is Grosvenor Americas’ third acquisition in the last three months and its fourth for the year.
1520 Fourth Street was built in 1974 and was acquired in 2005 by Great West Life, which invested over $2.3 million in capital improvements. Grosvenor Americas plans to spend approximately $1 million more for additional upgrades.
The property is located at the intersection of 4th Street, a main arterial leading into the city centre from the south, and 17th Avenue, the Beltline’s main commercial corridor. It is just eight blocks from the central business district, with extensive public transportation options. The building is more than 90 per cent leased, with office tenants including government, accounting, oilfield services, education, and several restaurants.
“The acquisition of 1520 Fourth Street meets Grosvenor Americas’ strategic objectives of purchasing properties with value-add potential and opportunities for future development,” said James Delmotte, senior vice-president, Investments, Grosvenor Americas. “We were able to purchase this building at well below replacement cost in an improving office market cycle.”
Despite Canadian and global economic uncertainty, Calgary’s economy and commercial real estate market are thriving, with more than 86,000 jobs created in Calgary last year (according to Statistics Canada). Calgary’s unemployment rate of 5.4 per cent is well below the national unemployment rate of 7.4 per cent.