- What The valuation for the 540,000 sq ft building is $86/sq ft
- Why The property last traded in 2005 at about $350/sq ft
- What next Armco plans to explore the possibility of building a residential tower at the site
A Class-A office tower in Calgary has traded for $46.5m, Green Street News can reveal.
Armco Capital bought the 540,000 sq ft First Canadian Centre from GWL Realty Advisors for $86/sq ft. Avison Young brokered the deal, which closed this month. GWL purchased the property from Bank of Montreal for $188m in 2005.
At 350 7 Avenue Southwest, the 41-storey building was completed in 1982. Tenants include Family Law Solutions, Outsiders Law and Troy Valuations.
The property is BOMA Best Platinum certified and has underground parking, a conference centre, bike storage and a Plus 15 connection. It’s on the LRT line and is adjacent to CORE Shopping Centre.
Armco will explore the possibility of building a residential tower at the site, which would leverage an existing foundation intended to support a second office building. The foundation was poured in 1981, but an economic downturn shelved the proposed 64-storey tower.
The office vacancy rate in downtown Calgary was 24.5% in Q3, according to Avison Young. The city has had the highest office vacancy rate in Canada for several years, with the figure rising consistently since the oil and gas crash in 2014.
Armco Capital develops and invests in real estate across North America. In October, the company purchased Bow Valley Square for $140m. George Armoyan is president of the Halifax-based company.
