In late-November, Halifax-based G2S2 Capital Inc. announced that it had acquired First Canadian Centre, a landmark office tower in downtown Calgary, continuing its investment in Alberta.
Constructed in 1982, First Canadian Centre sits at 350 7 Avenue SW, rises 41 storeys, and is home to approximately 540,000 sq. ft of Class A office and retail space. The property is located about one block west of Bow Valley Square, the four-tower office complex G2S2 Capital Inc. acquired in October from Oxford Properties and Alberta Investment Management Corporation (AIMCo).
Similar to the Bow Valley Square transaction, G2S2 Capital acquired First Canadian Centre through Armco Alberta, a subsidiary of Armco Capital Inc., which is itself a wholly-owned subsidiary of G2S2 Capital Inc., the privately-held investment holding company of George Armoyan, who is also the Chairman, President, and CEO of Clarke Inc. (TSX: CKI.TO) and Chair of the Board of Trustees of Slate Office REIT (TSX: SOT.UN).
G2S2 Capital announced the acquisition of First Canadian Centre in a press release on November 21 and did not disclose the vendor or purchase price, but the purchase price was $46,500,000, according to commercial real estate brokerage Avison Young, who brokered the sale on behalf of GWL Realty Advisors, which acquired the property from the Bank of Montreal in 2005 for a reported $188 million.
When First Canadian Centre was first conceived, the original plan was for two towers, with the second being located at the northwest corner of 2 St SW and 7 Avenue SW. The second tower was envisioned to rise 64 storeys, and work on the foundation began, but construction on the tower did not end up moving forward as a result of economic conditions.
In their LinkedIn post announcing the acquisition of First Canadian Centre, Armco revealed that they intend to revive the plan for the second tower.
"We're excited to share the potential for a residential tower on-site, leveraging the existing foundation originally designed for a 64-story structure in 1981," the company said. "If developed, this project could further enhance the property's position as a dynamic, mixed-use destination, integrating living, working, and retail spaces in Calgary's downtown."
"Very proud of our newest acquisition," added George Armoyan in a comment on the post. "I can’t wait to start the new residential tower on the existing foundations and underground infrastructure."
For Armco and G2S2, this is the third major office property in Calgary it has acquired in the past 14 months. Prior to acquiring Bow Valley Square in October for approximately $140 million, the company also acquired the 32-storey and 326,685-sq. ft Altius Centre at 504 4 Avenue SW for $20 million in a deal that was brokered by CBRE.
Colliers is currently serving as the property manager for both Altius Centre and First Canadian Centre and is handling leasing on all three properties.
Across the three properties, Armco's office portfolio in Calgary now exceeds 2.4 million sq. ft and the company said the acquisition of First Canadian Centre "strengthens our position in Calgary and supports our ongoing commitment to growth and value creation."
