A nine-storey office tower on Howe Street has been snapped up for $38 million as Artis Real Estate Investment Trust (TSX:AX.UN) expands its presence into downtown Vancouver.
The Winnipeg-based real estate company said Wednesday it had entered an agreement to buy 1045 Howe Street as an investment.
The building is the first property the company has purchased in the downtown core, although it owns a slew of commercial properties in the Lower Mainland.
The tower, which contains 101,145 square feet of leasable space and a number of tenants, will be financed with cash and the assumption of a $15.6 million mortgage.
Kirsty Stevens, Artis’ senior vice-president of finance and administration, said: “We like British Columbia and we love real estate in B.C., Vancouver particularly.”
The company has been actively seeking investments downtown, she said, but has been unsuccessful due to tough competition.
The deal follows $133.4 million in property acquisitions Artis had closed earlier this year on assets in Alberta, Manitoba and Minnesota.
Stevens could not comment on how the deal would affect the tenants of 1045 Howe, but she did say it was about 95% full and the company plans to have it at capacity this fall.