GWL Realty Advisors recently completed two large acquisitions pertaining to two landmark office buildings, joining a growing list of institutional investors that have shown a strong conviction in high-quality office assets.

Last week, GWLRA announced that it had acquired 123 Front St. W. in downtown Toronto, an office complex known as Citigroup Place that's named after the American bank that anchors the building. GWLRA completed the transaction on behalf of The Canada Life Assurance Company.

Oxford Properties put Citigroup Place on the market earlier this year, as reported by RENX in February.

Earlier this year, however, in Q2, GWLRA also bought out partner Hydro-Québec from the multi-tower Gulf Canada Square office complex at 401 9 Ave. S.W. in Calgary.

This transaction was not announced, but industry sources told RENX that GWLRA bought out Hydro-Québec’s 50 per cent ownership interest for roughly $68 million and has full ownership. A spokesperson for GWLRA said “I can confirm our participation,” without confirming or denying any of the transaction details.

Citigroup Place

Located at the bustling intersection of Front Street West, University Avenue and York Street, adjacent to Union Station, Citigroup Place was constructed in 1983 and is home to 344,393 square feet of leasable space, split between 332,298 sq. ft. of class-A office space and 12,095 sq. ft. of retail space, according to the listing brochure.

The listing team was David Tweedie, Nurit Altman, Keith Chan and Ryan Marino of RBC Capital Markets Real Estate Group alongside Peter Senst, Jaysen Smalley, and Kai Tai Li of CBRE.

Renovated in 2010, Citigroup Place rises 20 storeys and has a unique appearance that makes it look like three office buildings side-by-side with no separation. The building is also home to 128 parking spaces and is LEED Gold and BOMA Best certified.

According to the brochure, the 344,393 sq. ft. of space is 93 per cent leased to a diverse group of tenants and the weighted-average lease term (WALT) is 7.9 years.

Anchor tenant Citigroup uses the building as their Canadian headquarters, and extended their lease recently, according to the listing team. In Q2, Citigroup also acquired the office building they were leasing at 5900 Hurontario St. in Mississauga and an adjacent 7.80-acre parcel, from Orlando Corp. for $62.8 million and $18 million respectively.

Gulf Canada Square

Located about two blocks west of Calgary Tower, Gulf Canada Square is a similar building. It was built in 1979, also rises 20 storeys. It is substantially larger than Citigroup Place, however, with over 1.1 million square of space.

Building amenities include a food court, pharmacy, banking services, medical offices and 24/7 security. It is also part of the Plus 15 skywalk network in downtown Calgary and includes direct connections to a city-owned parkade, Bankers Hall and The Core Shopping Centre. Stephen Avenue and the Calgary Convention Centre are also nearby.

“Gulf Canada Square underwent some incredible renovations in 2024 creating brand new amenities, including a bright, open plan lobby, a modern tenant lounge and patio, a new conference centre, and a refreshed contemporary exterior entrance,” said GWLRA on their webpage for the building.

“GWL Realty Advisors recognizes the importance of investing in the building to maximize its ability to attract prospective tenants, as well as retain existing tenants. The exceptional standard of building amenities position the building as a leading competitor in the downtown core.”

GWL Realty Advisors also owns the 27-storey Watermark Tower at 530 8 Ave. S.W. in downtown Calgary — a short walk away from Gulf Canada Square. Last year, GWLRA completed a renovation of the Watermark Tower that saw shared spaces and building amenities upgraded.

High-quality office assets still in demand

In the press release announcing the acquisition of Citigroup Place, GWLRA called the acquisition “a rare opportunity to acquire an institutional-quality, core Toronto office asset in one of the country’s most important business districts” and said the location “places the property among the most transit-oriented office assets in North America, with access to regional, national and airport connections that support its appeal to leading employers.”

“This acquisition reflects our conviction that select office assets continue to offer compelling long-term value,” said GLWRA President Glenn Way in the press release. “We are encouraged by the growing depth of investment opportunities in the market and are committed to disciplined growth that is aligned with our investors’ objectives.”

In brief comments emailed to RENX, GWLRA EVP of portfolio panagement Steven Marino also commented on the competitive advantage of high-quality office assets.

“The transaction is a reflection of the growing strength of the City of Toronto Financial Core’s office leasing market,” he said.

“The combination of return to office mandates across both the public and private sectors, together with the prospect of no new supply on the immediate horizon, has and is forecasted to continue to tighten conditions. This is manifesting in a material increase in leasing activity across our investment portfolio, and we believe best in class assets will continue to maintain a distinct competitive advantage moving forward.”