204 new rental units being built in another Calgary office tower conversion project

A Calgary business tower is being converted into 204 rental units downtown.

The building that sits at 800 Sixth Ave. S.W. was once a downtown Calgary workplace known as Place 800, but now it’s being transformed into 204 rental units.

It’s the latest office conversion project meant to improve vibrancy in the core and increase affordable housing.

“It’s critical that Calgarians have safe, affordable, accessible places to live,” said Myke Atkinson, Ward 7 councillor, during a news conference on Wednesday morning.

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This project is estimated at $83 million, with $62 million from the federal government, through the National Housing Strategy’s Affordable Housing Fund.

“I think it will continue to be a real success story because there’s a real ‘get it done’ attitude,” said Corey Hogan, MP for Calgary-Confederation.

The City of Calgary has contributed $15 million.

Administration wants the newly elected council to continue commit to more projects like these.

It’s asking for $40 million to support its downtown strategy.

“Our goal is to remove six-million-square-feet [of vacant office space] by 2031,” said Thom Mahler, director of Downtown Strategy. “We are just under three-million-square-feet. We are getting there, so we have a ways to go.”

Atkinson says he will support it.

“These [projects] are the kinds of things that will make Calgary’s downtown continue to prosper, so I absolutely believe in Calgary’s downtown revitalization,” he said.

This is the third office-conversion project for Astra group, which relies on public funding for these projects.

“It’s difficult to create projects that create such an impact without that contribution, so I certainly hope it’s here to stay and more projects will come to fruition,” said Maxim Olshevsky, chief executive officer, Astra Group and PeopleFirst Developments.

Analysts say Calgary continues to lead the way in Canada by increasing the supply of rental units, and for creative solutions to the glut of vacant office space.

“The last three years have almost been record-breaking houses built each year in Calgary,” said Peter Harris, Prairies and real estate, PwC Canada. “We expect to see continued growth from a housing starts perspective.”

There are no signs of a slowdown in the recent data, according to Statistics Canada

The total value of housing permits nationwide was up 4.5 per cent in September.

The increase is 16 per cent just for Alberta, and residential construction grew nationwide by $335 million, with Alberta contributing almost $220 million.

Funding provided for 800 Sixth Avenue S.W. is as follows:

• $62 million from the federal government, through the National Housing Strategy’s Affordable Housing Fund;
• $15 million in contributions from the City of Calgary;
• $13 million in contributions from the Alberta government’s Affordable Housing Partnership program;
• $900,000 in cash equity from the Alberta Ecotrust Foundation; and
• $4.9 million in cash equity from Astra Group.