Articles from Connect CRE

The Canada Infrastructure Bank is financing a $100 million loan to Cando Rail & Terminals for the expansion of the Sturgeon Terminal in Alberta's Industrial Heartland. This project, expected to be completed by late 2026, will double the terminal's capacity by adding 3,700 new railcar storage and staging spaces. It will create up to 50 local jobs and boost the region's GDP by more than $22 million annually. The expansion will enhance Western Canada's supply chain by improving market access through connections to major ports.

R2 Capital Partners has acquired two Class A office towers in Calgary's northwest for $160 per square foot, a 59% discount from their previous market value. The buildings, constructed in 2006, have a total of 119,030 square feet and are fully leased to 14 tenants, including government agencies and multinational corporations. This acquisition is part of R2 Capital's broader strategy for Calgary, with plans for further purchases in the area. The towers are considered suburban but are located close to downtown Calgary, providing a cap rate exceeding 12%.

Prime Minister Mark Carney has inaugurated the Major Projects Office (MPO) in Calgary, aimed at fast-tracking the approval and financing of national infrastructure projects. Under the Building Canada Act, this office will focus on ports, railways, energy corridors, clean energy, and mineral developments while ensuring environmental and Indigenous considerations. A new Indigenous advisory council will contribute to equitable opportunities in these projects. Dawn Farrell has been appointed as CEO to lead the efforts aimed at diversifying Canada's economic prospects.

Edmonton city council has approved a master agreement for a new event park in the Ice District, with a 9-4 vote. The $408.2-million project will include 2,500 housing units and the demolition of the old Coliseum. Funding will come from the City of Edmonton, the Alberta province, and the Oilers' ownership group. The project is part of the Capital City Downtown Community Revitalization Levy, a financing tool extended by the council to support infrastructure developments.

The federal government and the city of Calgary are investing $75 million in an office-to-residential conversion project in downtown Calgary. The federal contribution of $64.3 million comes as a low-interest loan to Dream Office REIT, while the city is adding $10.5 million through its Downtown Development Incentive Program. The project will transform the former Barclay Centre into a 166-unit apartment building with various on-site amenities. The development is expected to be ready for occupancy by late 2027.

Strategic Group is transforming the former Chevron office tower in downtown Calgary into a residential building with 332 units. The developer purchased the 25-storey tower for $17 million but is not using the city's Downtown Development Incentive Program for the conversion. Originally built by Chevron in 1982, the building offers strategic advantages for residential conversion due to its excellent floorplate and location near key transit lines. The conversion is part of a broader trend of energy firms downsizing and repurposing office spaces in response to economic shifts and the pandemic.

Equiton has acquired the Central Tower Apartments in south Edmonton, expanding its portfolio in Alberta to over 700 units. This acquisition adds to the Equiton Residential Income Fund Trust's geographic diversification, enhancing operational efficiencies. The newly constructed property, which features 175 upscale rental units, offers amenities such as a yoga room and cycling studio. Equiton now owns 43 multi-residential properties across Canada and continues to look for new opportunities in Alberta and Western Canada.

The Calgary City Council has approved a redevelopment project in the Marda Loop area led by Calgary Co-op and Truman. The development will feature twin multi-residential towers, alongside a new grocery store, retail, and commercial spaces. The project, named Marc and Marda Block, will also integrate affordable housing options, reducing the original unit count and height plans to mitigate sunlight impact. This venture is seen as a significant urban development opportunity due to its inner-city location.

Truman and Marriott International will develop three new hotels in Calgary as part of a $1.47 billion investment. The project includes W Calgary, JW Marriott Calgary, and an Autograph Collection Hotel at Stampede Park, expected to open by 2030. These hotels will enhance Calgary's hospitality landscape, create over 9,100 construction jobs, and provide more than 2,000 long-term positions. The initiative is predicted to significantly boost the local economy through increased tourism and visitor spending.

Deep Sky has completed the construction of its Alpha carbon-removal facility in Innisfail, Alberta, marking the world’s first carbon-removal and commercialization centre. Completed in under a year, it demonstrates the accelerated pace with which critical climate infrastructure can be developed. The facility includes direct-air-capture units and aims to generate carbon-removal credits by the end of 2025, supported by partnerships with major firms like Microsoft and financial backing from Breakthrough Energy Catalyst.

Calgary has opened its first downtown office-to-hotel conversion, marking the transformation of a former Mount Royal University campus into the Element by Westin hotel. This project, developed by PBA Group of Companies and managed by Westin, is part of the city's Downtown Incentive Program (DIP) aimed at reducing obsolete office space. Notably, the hotel was opened in time for the Calgary Stampede, and developers received $60 per square foot in development incentives provided by the DIP.

The U.S. and Canadian leaders, Donald Trump and Prime Minister Mark Carney, are at odds over trade deal concepts, which could significantly impact Canadian commercial real estate. Differences in opinions revolve mainly around tariffs, with Trump favoring a straightforward tariff approach. Although differences remain, both leaders expressed optimism about reaching an agreement. The ongoing discussions could influence investment decisions, development projects, and leases across the Canadian CRE market.