Hines, Oaktree Acquire Canada Office Tower

The partners are set to invest significant capital into the 708,000-square-foot First Tower in Calgary to bring it up to a Class A standard.
First Tower, Calgary, Canada

Hines and Oaktree Capital Management have acquired First Tower, a Class B office building in Calgary, Canada.

Located at 411 First St., the 27-story property offers efficient floorplates, views of the Bow River and a +15 connection, Calgary’s extensive pedestrian skywalk systems. First Tower is situated two blocks from the recently updated Riverwalk and several transit options.

Totaling 708,354 square feet, the asset is 51 percent leased to tenants such as Encana, TransCanada and Telus. The partners plan on investing significant capital into the building to bring it up to a Class A standard. Renovations will include redeveloping the 34,000-square-foot +15-floor, which will offer tenants access to a new lounge, café, fitness and wellness center, collaboration area, food service hall and conference facility.

“We are pleased to acquire this office asset where we have the ability to provide a compelling value proposition to our tenants,” said Syl Apps, managing director at Hines, in a prepared statement. “As a firm, we believe in, and are committed to, the city of Calgary with First Tower being Hines’ second office acquisition during the recent energy downturn. We look forward to continuing to grow our downtown Calgary value-add office portfolio in the coming months and years.”

Earlier this month, a joint venture between Hines and New York Life Real Estate Investors topped out the Offices at Chandler Viridian, a 250,000-square-foot Phoenix-area office building.

Image courtesy of Hines