Hines has acquired Life Plaza, located in downtown Calgary at 734 7th Ave. S.W., with Timbercreek Financial continuing as a strategic lending partner.

Life Plaza was previously owned by Toronto-based Slate Asset Management but it was placed under receivership in June after it failed to make loan payments to Timbercreek Mortgage Servicing Inc., an affiliate of Toronto-based Timbercreek Financial. Timbercreek was the primary lender and claimed it was owed close to $26.9 million in October 2023.

Slate was looking to sell other Calgary office buildings via CBRE and found purchasers for all of them except for Life Plaza, so Timbercreek took ownership after a process involving court-appointed receiver MNP Ltd. Hines worked with Timbercreek through that process to develop a path forward for the asset.

“The partnership brings together Timbercreek’s lending perspective with Hines’ investment and operating capabilities,” Syl Apps, Hines’ senior managing director and head of U.S. midwest and Canada, wrote in response to questions e-mailed by RENX.

“We see an opportunity to strengthen Life Plaza’s competitive positioning and support leasing momentum through active ownership, hands-on property management, fresh leasing capital and a targeted capital investment program.”

Hines will serve as Life Plaza’s owner, asset manager and property manager after acquiring it for an undisclosed price.

Additional details on specific improvements Hines will make to Life Plaza will be shared as plans are finalized, according to Apps.

Life Plaza details

The 46-year-old, 17-storey office building, with 225,983 square feet of office space and 10,331 square feet of retail space, was renovated in 2018. The average floor plate size in the BOMA Silver-certified building is 14,571 square feet.

Life Plaza is 68 per cent leased, with the major tenants including Tri Innovations, Manpower, Bank of Nova Scotia and Axiom Oil and Gas.

A fitness facility, a golf simulator, squash and racquetball courts are available for tenants’ exclusive use.

Life Plaza is centrally located along Calgary’s +15 network and is connected to AMEC Place and the Nexen Building. It’s on the city’s CTrain light rail transit system and numerous Calgary Transit routes are in close proximity. 

There are numerous retail and dining options in the area, including an A&W and a Bank of Nova Scotia branch on the main floor of the building.

Hines in Calgary

“The acquisition reflects our long-term conviction in Calgary and our belief that strong local operating capabilities can make a meaningful difference at the asset level,” wrote Apps. “Hines has been active in Calgary for nearly 20 years and has built a significant local operating platform over that time. 

“Today, we manage more than three million square feet in the market and have a local team of nearly 60 employees. That depth of local experience and relationships is central to how we approach Life Plaza and other opportunities in Calgary.”

Other buildings owned by Hines in Calgary are:

• One Park Central, a 32-storey, 462-unit purpose-built rental apartment at 510 12th Ave. SW;
• Two Park Central, a 40-storey, 531-unit purpose-built rental apartment at 1111 4th St. SW;
• and Arris East, a 24-storey, 190-unit purpose-built rental apartment positioned above 170,000 square feet of street-level retail at 505 4th St. SE.

Hines’ future Canadian acquisition opportunities

Houston, Texas-headquartered Hines established its Canadian operations in 2004 and has developed office, retail, residential and mixed-use properties since then. It has offices in Toronto, Edmonton and Vancouver as well as Calgary.

While Apps had nothing to share regarding potential future acquisitions, he said the Life Plaza deal builds on Hines’ long-standing commitment to Canada and its locally led investment and operating platform.

“We have long-standing relationships with institutional lenders and capital partners and are open to opportunities where our real estate and operating capabilities can help solve a business need,” wrote Apps. 

“Life Plaza is a good example of how Hines can work alongside a lender on a complex situation and bring an integrated platform to the next phase of an asset.”