All is not quiet on the Western Front for GWL Realty Advisors.
The firm’s new apartment project – which broke ground two weeks ago in Calgary’s Beltline district on behalf of Canada Life Assurance – will cost $100m-plus to build, Green Street News can reveal. And it’s just the start of what the real estate management and development company says it has in store for its regional footprint.
Targeting young professionals and helping older couples to downsize, the 219-unit tower is expected to take three years to build and will include a rooftop amenity floor and 6,000 sq ft of retail space. The development is touted as a major one along Fourth Street, a key corridor in the burgeoning Beltline section of Calgary’s downtown.
GWLRA has more than 1,500 homes in its Western pipeline, a sign of what it says is more openness to development than some cities farther east. Green Street News spoke to Geoff Heu, vice president of development for Western Canada at GWLRA, about what the tower means for Calgary, the company and westward expansion.
How does this latest project fit in with GWLRA’s push to expand its footprint in the West?
Calgary is important geographically in terms of our Western Canada strategy. We have been active in B.C., and we have been looking for the project and the right time to launch something in Alberta. We have both smaller and larger projects in the West. Our range is from more than 400 units on the larger side and then some projects as small as 90 units. We have different ownership groups that we work with, and each has their own specific needs. We are able to initiate smaller or larger projects to suit each owner, depending on the market and their investment strategy. This project would sit right in the middle in terms of size and is very appropriate for the Calgary market.
“Calgary is important geographically in terms of our Western Canada strategy”
In terms of size, 219 units seems pretty substantial for the area of Calgary it’s in.
For a residential tower in the Beltline, this is definitely appropriate and is a good balance. This size will allow the best operational efficiencies, timing for stabilization, and will allow economies of scale to get the best construction pricing for concrete construction.
Compared to buildings five years ago, are there any significant changes in the construction influenced by market forces?
To respond to what we are seeing in the market, we have included more social space, larger fitness facilities and added coworking space. Much of this will be uniquely located at the top of the building. One major element that we are focused on is the level of sustainability, carbon-reduction and green features that are included in all our new buildings.
It seems like the big prairie cities are a more hospitable place to tackle projects like this right now. What are the differences between building in Vancouver and Toronto versus Calgary and Edmonton?
“The planning department here focuses on the major issues and don’t get too caught up in the micro-details”
In Toronto or Vancouver, it could take a minimum of three years to get a project from acquisition of the land to the groundbreaking. The Calgary development environment, the planning department and the mayor are much more business-friendly and a lot more straightforward in terms of regulations, zoning and development permit requirements, and processes. The planning departments here focus on the major issues and don’t get too caught up in the micro-details.
We’ve got a condo crash in Toronto, and we’ve got court-ordered sales in Vancouver. Does that factor into decision-making when it comes to where GWLRA will expand?
Yes, we always look at the economic fundamentals, job creation, population growth, household income, demographics, and the City of Calgary certainly checks a lot of the boxes. Calgary has been identified as one of the major cities where our ownership groups would like to continue to build multifamily. Our owners are long-term investors and intend to hold the assets for decades. Thus, short-term changes to the market, although they are important, are less of a concern. We tend to focus on the macro-level fundamentals that could impact the market over time, and Calgary is well positioned.
Anything else in the pipeline right now out West?
In Calgary, we have another site on Eighth Street at 12th. And in Metro Vancouver, we have a few projects in the City of Vancouver and also in North Vancouver. We are also working on our first project in Victoria.
How many units combined?
We have over 1,500 homes in the pipeline.
Where do you see GWLRA’s footprint out West five years from now?
We want to continue doing what we are doing. We want to be one of the strongest institutional developers providing rental housing in each of the major markets in Western Canada, building wood-frame and concrete product. Over time we would like to expand our footprint, and this would include acquiring more sites and bringing on more homes to the market.
