CALGARY’S BOW OFFICE TOWER SOLD IN $1.67B DEAL

Calgary’s Bow office tower will have new ownership under a $1.67-billion deal announced Tuesday. H&R REIT has sold the distinctive, 58-storey downtown property to affiliates of Chicago-based Oak Street Real Estate Capital. H&R will receive 15 per cent of net rent from the tower’s primary tenant, U.s.-based energy company Ovintiv, under a lease that continues until 2038. It will retain ownership of lands adjacent to the 2-million-square-foot tower. The value of the Bow tower sale is about $1.2 billion, or $608 per square foot, including a lease transfer to Deutsche Bank Credit Solutions and Direct Lending valued at $418 million. City of Calgary records list the assessed value of the 500 Centre St. S property at $681 million. The sale will reduce H&R’S office presence in Calgary to three per cent, from nine per cent.