Calgary SSP Development Listing

[Ironhorse]

Originally Posted by ranchlandsselling

Cardel has listed their entire building for sale as a vacant. I'd guess they'd be looking for something around $43 million using a 6.5% cap rate on their estimated NOI.

Anyone know where they're moving to once the building sells? Times that tough at Cardel? Or completely unrelated.

I'm assuming you are talking about the Quarry Park building. Don't the owners keep all their Ferraris in the basement there? Time to downsize I guess.

[bizaro86]

Originally Posted by ranchlandsselling

What happened to the jpold thread?

Anyway,

Cardel has listed their entire building for sale as a vacant. I'd guess they'd be looking for something around $43 million using a 6.5% cap rate on their estimated NOI.

Anyone know where they're moving to once the building sells? Times that tough at Cardel? Or completely unrelated.

Interesting that they'd have an NOI forecast in this market, I think I'd take that with a bit of grain of salt if its vacant possession.

Of course, I'd be willing to pay a 1% cap rate on its vacant NOI...

[Bigtime]

Originally Posted by polak

Is that still being built?

Yes it is, they are still excavating out the pit, the deepest ever in the city.

[polak]

Originally Posted by Bigtime

Yes it is, they are still excavating out the pit, the deepest ever in the city.

That's good. I'd be more confident if they were already above grade though.

Hopefully they don't cap it.

[J pold]

Originally Posted by ranchlandsselling

What happened to the jpold thread?

Anyway,

Cardel has listed their entire building for sale as a vacant. I'd guess they'd be looking for something around $43 million using a 6.5% cap rate on their estimated NOI.

Anyone know where they're moving to once the building sells? Times that tough at Cardel? Or completely unrelated.

As it turns out my team and I are the agents who have been engaged to sell the building so I am very familiar with the offering. Basically the building is ~100,000 SF and right now Cardel occupies roughly half of the entire space and wants out. We would relocate them for ~20,000 SF in Calgary when the building sells. From an owner user perspective it's an amazing opportunity.

The full proprety brochure is here: http://colliersinternational.cmail20...ll-dhmdtdkh-k/

If you know anyone who would be interested let me know!

Also regarding my thread. I took it down as it didn't see the return to my business for the cost of keeping the thread alive. I'll revisit bringing it back in 2016 but I am still happy to chat the commercial real estate market on an informal basis.

[J pold]

Originally Posted by bizaro86

Interesting that they'd have an NOI forecast in this market, I think I'd take that with a bit of grain of salt if its vacant possession.

Of course, I'd be willing to pay a 1% cap rate on its vacant NOI...

The income valuation obviously gets us the biggest return and a $26.00 rate for Quarry Park is still a market rent, but yes from a vacant possession perspective take all that with a grain of salt.

[J pold]

Originally Posted by Ironhorse

I'm assuming you are talking about the Quarry Park building. Don't the owners keep all their Ferraris in the basement there? Time to downsize I guess.

No comment.

[cam_wmh]

Originally Posted by polak

That's good. I'd be more confident if they were already above grade though.

Hopefully they don't cap it.

What about TELUS suggests to you, that they would cap it?

[polak]

Originally Posted by cam_wmh

What about TELUS suggests to you, that they would cap it?

Half of it being rental? Are they even planning on using all of the office space to themselves?

[J pold]

Originally Posted by polak

Half of it being rental? Are they even planning on using all of the office space to themselves?

No. There is 430,000 SF of office there and Telus is taking 156,000 SF of it. There is 314,550 SF available for lease today and the building is set to be delivered for occupancy in October of 2017.

They are asking $43.00/SF for the space right now. To provide some context to that number, similar A class downtown sublease space is going for around $15.00/SF. Needless to say they are having serious trouble leasing what's left there.

http://telussky.com/floorplans/#floorplan-0

[jayswin]

Originally Posted by J pold

No. There is 430,000 SF of office there and Telus is taking 156,000 SF of it. There is 314,550 SF available for lease today and the building is set to be delivered for occupancy in October of 2017.

They are asking $43.00/SF for the space right now. To provide some context to that number, similar A class downtown sublease space is going for around $15.00/SF. Needless to say they are having serious trouble leasing what's left there.

http://telussky.com/floorplans/#floorplan-0

Crap, any chance they will downgrade from the original plan? I sincerely hope not, I'm really looking forward to this.

[polak]

Originally Posted by flameswin

Crap, any chance they will downgrade from the original plan? I sincerely hope not, I'm really looking forward to this.

Yeah, hopefully they build it to spec with low labor costs in the hopes that the market rebounds upon completion?

[I-Hate-Hulse]

Why did a homebuilder put a theatre in their office building?

[J pold]

Originally Posted by polak

Yeah, hopefully they build it to spec with low labor costs in the hopes that the market rebounds upon completion?

As far as I know they are going full steam ahead. From a new development perspective they earn income when the building is fully developed in 2017 and not in today's market. They still have to hope the market rebounds by 2017 but right now they are somewhat protected from the current market conditions.

[J pold]

Originally Posted by I-Hate-Hulse

Why did a homebuilder put a theatre in their office building?

The original Cardel building has a theatre as well. It's just their corporate culture. They lend the teatre to a number of charities at no cost and will host local film festivals there as well. Other tenants in Quarry Park use it quite frequently at a charge, it's been a fairly strong feature of the property.

[bizaro86]

Originally Posted by J pold

The original Cardel building has a theatre as well. It's just their corporate culture. They lend the teatre to a number of charities at no cost and will host local film festivals there as well. Other tenants in Quarry Park use it quite frequently at a charge, it's been a fairly strong feature of the property.

Does the NOI calculation include $26/foot for the theatre?

[ranchlandsselling]

Originally Posted by J pold

No. There is 430,000 SF of office there and Telus is taking 156,000 SF of it. There is 314,550 SF available for lease today and the building is set to be delivered for occupancy in October of 2017.

They are asking $43.00/SF for the space right now. To provide some context to that number, similar A class downtown sublease space is going for around $15.00/SF. Needless to say they are having serious trouble leasing what's left there.

http://telussky.com/floorplans/#floorplan-0

Well that would be $43 for basically a 10 year term and maybe a $50 TI allowance, vs. the $15 per sq. ft. as is but for what term? I mean, if it's a 1 year term and the going rate is $15 that's pretty high, but if it's for an equivalent 10 year term that's outrageous.

[ranchlandsselling]

Originally Posted by J pold

As it turns out my team and I are the agents who have been engaged to sell the building so I am very familiar with the offering. Basically the building is ~100,000 SF and right now Cardel occupies roughly half of the entire space and wants out. We would relocate them for ~20,000 SF in Calgary when the building sells. From an owner user perspective it's an amazing opportunity.

The full proprety brochure is here: http://colliersinternational.cmail20...ll-dhmdtdkh-k/

If you know anyone who would be interested let me know!

Also regarding my thread. I took it down as it didn't see the return to my business for the cost of keeping the thread alive. I'll revisit bringing it back in 2016 but I am still happy to chat the commercial real estate market on an informal basis.

So they were trying to lease out half their space as they downsized, I've seen the listings, then they want to reduce from ~50,000 sq. ft. to ~20,000 sq. ft. and sell the building they paid $37 million for in 2009.... That just reeks of trouble or just a bit of excess in 2009.

[J pold]

Originally Posted by bizaro86

Does the NOI calculation include $26/foot for the theatre?

The theatre is considered common area and we are using a rentable area calculation for the NOI so yes.

[J pold]

Originally Posted by ranchlandsselling

Well that would be $43 for basically a 10 year term and maybe a $50 TI allowance, vs. the $15 per sq. ft. as is but for what term? I mean, if it's a 1 year term and the going rate is $15 that's pretty high, but if it's for an equivalent 10 year term that's outrageous.

Most sublease terms are under 5 years but there are a handful that are very long-term and you could do a $15.00 deal on a 5+ term on a an as is basis.

Originally Posted by ranchlandsselling

So they were trying to lease out half their space as they downsized, I've seen the listings, then they want to reduce from ~50,000 sq. ft. to ~20,000 sq. ft. and sell the building they paid $37 million for in 2009.... That just reeks of trouble or just a bit of excess in 2009.

Probably a bit of both. When we sold them the building the residential housing market was going gang-busters and they had big visions. Basically since they've occupied it it's much harder to develop residentially and the business hasn't grown to the level they excepted.