Although it was completed relatively recently, the developers of the ICE District in Edmonton have put the Connect Centre retail complex next to Rogers Place on the market, according to a new commercial real estate listing that came online this week.
The ICE District is a $2.5 billion mixed-use sports and entertainment district being developed around Rogers Place, the home of the National Hockey League's Edmonton Oilers. The ICE District spans approximately 25 acres in the heart of downtown Edmonton and includes office buildings, residential buildings, a hotel, retail space, a public plaza, a park, and more.
The developers of the ICE District are Katz Group — the parent company of Oilers Entertainment Group, the owner of the Edmonton Oilers — and ONE Properties, with DIALOG designing most of the major components.
Completed components include the 29-storey Edmonton Tower, the 56-storey JW Marriott Edmonton, and the 66-storey Stantec Tower, as well as the Connect Centre, a two-storey commercial complex that is home to 113,776 sq. ft of retail space, anchored by a Loblaws CityMarket. Other tenants include CIBC, National Bank, the Real Canadian Liquorstore, the Edmonton Oilers Official Team Store, and The Canadian Brewhouse.
An overview of the ICE District in downtown Edmonton and the Connect Centre. / Avison Young, TD Cornerstone
The Connect Centre makes up a full block immediately south of Rogers Place and immediately west of the JW Marriott Edmonton and Stantec Tower. The northern side of the complex, however, was originally set to serve as a podium for a 16-storey office tower anchored by Canadian Western Bank (which was absorbed by National Bank last year), but was later cancelled.
The stratified development air rights thus remain available and is also being made available along with the Connect Centre, either together or separately.
The Listing
The Connect Centre and development air rights were listed for sale this week by commercial real estate brokerages Avison Young and TD Cornerstone Commercial Realty, which called the offering a "prime mixed-use asset with redevelopment potential in Edmonton's ICE District."
- Address: 10308 103 Street NW, Edmonton
- Gross Leasable Area: 113,776 sq. ft
- Current Occupancy Rate: 89%
- Zoning: AED - Arena & Entertainment District
- Price: Unpriced
- Listed By: Avison Young (Cory Wosnack, Reed Newnham, James Robertson, Mark Sinnett) and TD Cornerstone (Ashley Martis, Elliot Medoff, Alexandra Ivashenko, Massimo Lorusso)
"The Property features a diverse cash flow profile secured by strong covenant tenants that average a weighted lease term of 12 years, with contractual rental escalations," the listing team said in their sales brochure. "Loblaws accounts for 18% of revenues, while CIBC and National Bank represent each 29% and 11%, assuring a future owner of secure and long-term income security backed by investment grade tenants. The balance of the tenancy profile includes the corporately owned The Canadian Brewhouse (27%), Edmonton Oilers (12%), and Plantlife Cannabis (3%)."
As for the development air rights, the listing team notes that the site can accommodate up to 582 rental units / 500,000 sq. ft in a building with a maximum height of 195 metres (640 ft), based on the scope of a prior residential development permit. The Connect Centre was completed with 250 dedicated vehicle parking stalls earmarked to service future development, which now also provides significant cost and time savings for future construction.
The cancelled 16-storey office building (left) and an illustration of the current development potential (right). / Avison Young, TD Cornerstone
"Connect Centre is an integral component of ICE District — a vibrant ecosystem with residents, workers and visitors," the listing team concluded. "The restaurants, cafés, and daily-needs retail make ICE District a livable, walkable environment. Rogers Place, home of the Edmonton Oilers, has welcomed the Stanley Cup finals for the last two years, drawing over a million visitors annually to the area."
"Alongside Connect Centre, ICE District features landmark destinations such as Stantec Tower — Canada’s tallest office and residential building west of Toronto — and the JW Marriott hotel. With direct connections to the LRT, major bus routes, and Edmonton's downtown pedway system, ICE District stands as a premier example of transit-oriented development at the heart of one of Western Canada's most vibrant urban centres."
