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PROPERTYlines
Issue No. 2 – September, 2020
 
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Editor/Publisher, Mark Kolke
Contact me at your convenience: kolke@markkolke.com
PROPERTYlines ~ monthly re-cap of news, commentary, perspective – commercial real estate ~ for investors, property professionals, lawyers, lenders, accounting and insolvency practitioners; presented by Mark Kolke - publisher of FACILITYCalgary and HOUSING TRUTH
CLIMATE CHANGE, LEED & RENEWABLE ENERGY
+ Billy Bishop Toronto Airport Master Plan – Cleaner, Greener, Quieter – won Environmental Achievement Award
+ Boralex Inc. commissioned its 15MW Santerre Wind Farm in France
+ Canada: Government of Canada via Western Economic Diversification announced $3.0 million in funding for innovative green technologies in construction …; AND, reported in several media outlets that the Canada Emergency Commercial Rent Assistance program will be extended, and modified – the program has been criticized widely for being too difficult to access for Tenants and too onerous for Landlords … tic toc
+ concrete industry targets a carbon neutral future: 2050 Climate Ambition
+ PG&E and Tesla started construction of storage/dispatch facility with 730MW capacity in Monterey County, California
CONSTRUCTION & BUILDING INNOVATIONS
+ Alpine Building Maintenance Inc. acquired Domus Building Cleaning Company Limited
+ contractors shortlisted for $192.9 million Ottawa library project
+ demolition of the 70 yr. old Stampede Corral at Calgary Stampede Park has commenced
+ electric vehicle charging stations – SWTCH Energy Inc. venture raising capital for North America wide expansion
+ GFL Environmental acquiring WCA Waste Corporation from Macquarie Infrastructure Partners II for US$1.212 billion
+ Government of Canada via Western Economic Diversification announced $3.0 million in funding for innovative green technologies in construction …
+ fobs and keys may be giving way to facial recognition; it’s touchless and better security – Vornado has moved from experiment to portfolio-wide implementation
+ it’s budget season; property managers everywhere are developing their operating cost budgets for 2021, and it’s a strange landscape in ‘the time of COVID’ …
+ Johnson Controls launched its OpenBlue Healthy Buildings to ensure safer buildings as people return to work
+ Lowe’s Canada launched a VIPro program for contractor-customers of Lowe’s, RONA, and Reno-Depot operations
+ minimizing sound/noise in control-room environments; Evans Consoles advice
+ reopening offices safely strategies for Landlords and Property Managers
+ rooftop greenhouses; Lufa Farms doing their 4ththe world’s largest rooftop farm
+ Sash Corporation and Skyway Canada Ltd. are forming a JV; Mamawi-Sky
+ touchless office access – safety now translates to long-term value; download the free report
CORPORATE RESPONSIBILITY & ESG REPORTS
+ Air Canada published its 2019 Sustainability Report – Citizens of the World
+ Minto Group released its 2019 Sustainability Report
+ RioCan REIT released its 2019 Sustainability Report
COVID-19 matters ...
+ CPP Investment Board publishes a research paper: How COVID-19 is shaping the landscape for long-term investors
+ reopening offices safely strategies for Landlords and Property Managers
+ store hours, for malls, and for free-standing retail are returning to normal levels after retailers and their customers have adapted to COVID curtailments
+ Zoom calls have been widely adopted as a new ‘must-have tool’ for business; ZOOM founder Eric Yuan interview/webinar
DATA CENTER TRENDS
+ data centers enjoying net absorption during COVID; demand bodes well for the future
ENERGY
+ current energy prices; live link to current Bloomberg energy prices / OilPrice.com
+ Walmart Inc. and Schneider Electric Canada Inc. formed a venture to help Walmart suppliers better access renewable energy; the Gigaton PPA Program is focused on reducing one gigaton of carbon dioxide emissions annually
ENTITLEMENTS ~ REGULATORY
+ the City of Calgary started a concept that has spread; developers can now post surety bonds rather than cash security on projects …
+ the City of Calgary is considering alteration to the Airport Vicinity Protection Area (in place since 1979) which restricts development scope for 23,000 properties, a large portion of which are residential; the revisions are largely connected to newer/quieter planes …
+ the City of Edmonton is looking at rezoning its Station Pointe T.O.D. site on the Fort Road to stimulate development
FINANCING NEWS & INNOVATION
+ do you understand Libor? Well, whether or not you understood Libor or the financial industry scandals in recent years, you’ve probably heard about and wondered what SOFR is? The good folks at Walker & Dunlop put together a great webinar – I took copious notes and didn’t doze-off, though it is mind-numbing stuff for anyone who doesn’t deal with the institutional pricing of money all day, but if you are conversant in that lingo, or want to be, this webinar in LIBOR TRANSITION might be for you; if you want to learn more on this shift, check out the ISDA LIBOR transition page
+ HomeEquity Bank introduced its CHIP Open program for borrowers 55 and older; it’s a short-term reverse mortgage product
+ 25% of U.S. hotels at risk of foreclosure; Mortgage Professional American magazine article
GOVERNMENT ACTIONS / programs - ALBERTA
+ the Kenny government is fast-tracking its stimulus plan; great overview published by Osler
GOVERNMENT ACTIONS / programs - CANADA
+ Canada: Government of Canada via Western Economic Diversification announced $3.0 million in funding for innovative green technologies in construction …; AND, reported in several media outlets that the Canada Emergency Commercial Rent Assistance program will be extended, and modified – the program has been criticized widely for being too difficult to access for Tenants and too onerous for Landlords … tic toc
+ Natural Resources Canada is funding the Tidal Power industry with $9.4 million for four project initiatives
IDEAS ...
+ I want to explore running an op-ed section – looking for contributors, so if you have an idea you would like to share, send it to me: kolke@markkolke.com
INFRASTRUCTURE & P3
+ Alberta government gave the green light to exploring Calgary-Edmonton Hyperloop project; this notion has been floated before but it never made sense from a payback perspective right-of-way issues; but who knows, interesting times. A Transport Canada report says it’s not viable yet  … tic toc
+ Algonquin Power & Utilities Corp. agreed to acquire a 53.5% interest in Chilean Water Utility ESSAL for $92.3 million
+ Broadway Subway station in Vancouver; $2.8 billion capital budget, construction starting fall/2020
+ Connor, Clark & Lunn Infrastructure agreed to acquire a U.S. renewable power portfolio from EDP Renováveis, S.A. together with partner Régime de Rentes du Mouvement Desjardins and Desjardins Financial Security Life Assurance Company; five renewable power assets/560MW total capacity; terms not disclosed
+ contractors shortlisted for $192.9 million Ottawa library project
+ Government of Canada announced funding of $62.4 million toward $87.7 million in northern Alberta infrastructure projects and a $3.3 billion commitment to COVID-19 recovery by schools, colleges and universities reopening
+ Hydro One Limited completed its acquisition of Orillia Power Distribution Corporation
+ Vancouver Airport Authority (YVR) terminated its $4.5 billion multi-year redevelopment program due to COVID-19 impact on travel; they will complete the $300.0 million redevelopment project of Pier D International Terminal; notice to terminate given to contractor EllisDon Corporation
INSURANCE & RISK MANAGEMENT
+ Alberta’s insured natural catastrophe total for 2020 is already at $2.0 billion; flood and hailstorms the big-ticket items
+ Aon Plc released its 2020 Canadian Insurance Market Report [note: you have to volunteer your contact information to get their download]
+ the Risk Management Association announced its new RMA Dual Risk Rating, sold as a turnkey software solution; seems they have COVID-19 factors baked-in …
INVESTMENT/DEALS - development / re-development
+ Loblaw Companies Limited re-opened its West Block building in downtown Toronto
INVESTMENT/DEALS - hospitality
+ Four Seasons Tokyo at Otemachi is now open ; the 190-key facility has 285 staff, sits atop a 39-storey office tower
+ Hilton has permanently closed its 478-key Hilton Times Square location in Manhattan
+ rethinking hotel design in a post-pandemic world …
+ Sandman Group opened a new hotel in Saskatoon; Signature Saskatoon South – 230-key, full-service hotel will have two restaurants; Denny’s opening Sept./20, and Chop Steakhouse & Bar opening Nov./20
+ Sutton Place Hotel Halifax opened; 262-key waterfront location
+ Trump International Hotel in Vancouver has closed; no plans to re-open under the Trump flag
INVESTMENT/DEALS - industrial, storage, logistics
+ AIMCo teamed with Canmoor to acquire six UK Distribution warehouses from LondonMetric Property for  £57.3 million; going in IRR at 11% - sale to close in March, 2021
+ Blackstone sold an eight-building/1.2 million sq. ft. warehouse portfolio in Greenville, SC; terms not disclosed
+ Canada Pension Plan Investment Board extending and expanding its JV with GLP Japan Income Fund for building large scale logistics facilities in Japan
+ Canadian Pacific opening a new multi-commodity transload facility in Montreal; 118,000 sq. ft. facility of indoor/outdoor loading
+ Group Quint Inc. acquired two industrial assets in Quebec
+ industrial and logistics demand is shifting in response to COVID; increasing demand for cold storage as food products supply-chain adjusts
+ $190.0 million new development in Surry – 470,000 sq. ft. ‘World Commodity Trade Center’
INVESTMENT/DEALS - multi-res
+ ML Devco and main+main planning a trio of high rises (22, 28, 32 storeys) atop a two-floor podium in Ottawa; 1,003 rental units
+ ViveRE Communities Inc. acquired seven property portfolio (128-doors) in Moncton, NB for $14.7 million
INVESTMENT/DEALS - office
+ Arpeg Group of Companies re-working the Cardero Building in Vancouver; post-COVID thinking mixes uses, service, amenities …
+ in San Francisco – a big deal collapsed; Pinterest walked away (they paid a US$90.0 million cancellation fee) from a 490,000 sq. ft. lease, as a pandemic induced re-think of Pinterest’s future is reportedly the cause of the cancellation
+ Mohawk Asset Management acquired a medical/professional office building in Chicago
+ office use innovation in Houston; former Sears store + $US$100 million = 300,000 sq. ft. mixed-use building; Chevron is the first tenant signed up to be part of Rice University’s innovation hub
+ RGN-National Business Centers (dba Regus and IWG) got CCAA creditor protection; restructuring planned, KSV is monitor, and meanwhile, a Chapter 11 proceeding is underway in the U.S.
+ Shopify rationalizing its office space use in Ottawa – response to COVID-19 impact on its business; they will vacate 170,000 sq. ft. HQ to reduce its footprint
+ Starlight Investments planning a 12-storey office building in Etobicoke
INVESTMENT/DEALS - parking
INVESTMENT/DEALS - pension funds, insurance co.
+ Caisse de dépôt et placement du Québec and DP World expanding its ports portfolio by a further US$4.5 billion to total US$8.2 billion
INVESTMENT/DEALS - REITS
+ Artis REIT has decided to spin off their $819.3 million/42 properties retail portfolio into a separate REIT; subject to unitholder and court approval, the new entity will be called Artis Retail REIT
+ Automotive Properties REIT acquired a dealership in Laval for $13.5 million
+ Blackstone REIT investing $395.0 million in equity in Tricon Residential
+ CAP REIT acquired two properties in SW Ontario (301-doors in Sarnia and London) for $50.0 million
+ Flagship Communities REIT has filed a prospectus in support of its upcoming IPO for a newly established Ontario based open-ended REIT; initial holdings will be 45 income-producing manufactured home communities (Kentucky, Indiana, Ohio & Tennessee) / 8,225 lots
+ InterRent REIT acquiring 723 unit portfolio in Hamilton and London, ON
+ Nexus REIT acquiring 95,180 sq. ft./single tenant Calgary industrial property for $13.75 million
+ NorhWest Healthcare Properties REIT acquired a 4-hospital portfolio in London, UK for $454.0 million; planning JV
+ Slate Grocery REIT changed its name to Slate Retail REIT
+ will shopping center REITs fare better in the COVID era? … a Moody’s analyst chimes in
INVESTMENT/DEALS - retail
+ Brooks Brothers’ 200-yr. old brand will survive; bought out of insolvency for US$325.0 million; 125 of 500+ stores will remain open; the new owner is Sparc Group (backed by Simon Property Group) who also operate  Aéropostale, Nautica, and Lucky Brand stores
+ Cadillac Fairview is planning to breathe new life into its Galeries d’Anjou lands – residential/commercial project adjacent to existing development will involve a $2.5 billion capital cost of new development
+ The Caisse de dépôt et placement du Québec is now the largest shareholder of Tim Hortons; they’ve invested $200.0 million in Tim’s parent Restaurant Brands International
+ J.C. Penny Company, originally 860 stores before starting to downsize while in Chapter 11 bankruptcy has been sold; US$1.75 billion for retail and operating assets being paid by a partnership of Brookfield Property Group and Simon Property
+ J. Crew completed its restructuring and downsizing; has exited Chapter 11 bankruptcy process
+ Leon’s Furniture opening two new stores; Kelowna (20,000 sq. ft.) opened in August, Calgary (50,000 sq. ft.) store in October
+ Mall of America (Bloomington, Minnesota) owners Triple 5 Corporation entered into a forbearance agreement on US$1.4 billion in mortgage debt to forestall foreclosure
+ MEC (formerly Mountain Equipment Co-op) is transitioning to non-coop ownership under its CCAA insolvency process; Kingswood Capital Management LP is acquiring substantially all assets of MEC; currently, 22 stores across Canada – and Kingswood has plans to retain 17 locations
+ Neiman Marcus reorganization plan approved – will exit Chapter 11 by end of September
+ Pizza Huts are cutting back; 300 locations going dark, 927 are on the selling block; Yum! Brands unit NPC International, is Pizza Hut’s largest franchisee representing 20% of the U.S. chain’s operation
+ Starwood Capital Group lost five malls it acquired in 2013 after defaulting on debt payments
+ there is talk, and rumoured action too, about shifting dynamics in the bricks+mortar v. online retailers; as malls face closures and bankruptcies among tradition tenant types, online retailers are exploring a physical presence for stores; for example, online shoe retailer Zappos is setting up shop in Manhattan – they’ve leased space in the Union Square area of Manhattan – not as an outlet store (they are already pioneering that concept as well), but as a competitive fashion player on the retail landscape. Zappos is a unit of Amazon, so this is a lab-experiment to be sure --- and it might be a trend worth watching. The test will be how mall landlords respond/act proactively to woo online-retailers …
IoT (Internet of Things)
+ Amazon’s debuted its high-tech grocery store; Amazon Fresh lets you bag your groceries as you pick them, checks you out electronically – no cashier, minimal touch/interaction, along with using Alexa voice-activated tools … tic toc
NEW PROJECTS IN THE PIPELINE
+ Amazon announced two new fulfillment centres; Ajax (1.0 million sq. ft.) and Hamilton (855,000 sq. ft.), ON – will create 2,500 jobs when projects open in late 2021
+ CIBC Square, South Tower in Toronto; 49-storey 1st tower nearing final height – completion/occupancy in 2022
+ ELI condo project in Montreal; 81 units in Quartier des spectacles
+ KingSett Capital proposing a 61-storey mixed-use rental tower at Ontario Power Building site in Toronto
+ Le Newman – three-building mixed-use project in Montreal will have 950 residential units
+ Menkes Developments Ltd. and TD Asset Management Inc. topped-off its first building (690,000 sq. ft. / 25-storey) of its Sugar Wharf development; occupancy spring 2021
+ Okanagan Indian Band starting construction of Duck Lake Business Park supported by $2.275 contribution by the Government of Canada; 23 acres, 300,000 sq. ft. of commercial building development planned
+ Omicron working on a planned 81,500 sq. ft. shipyard plan for Seaspan Victoria Shipyards; development application calls for a $26.0 million budget
+ SmartStop Self Storage REIT announced a 1,050 unit facility for the GTA
+ TELUS is planning a 155,000 sq. ft. flatiron office building in Victoria on a 27,900 sq. ft. triangular site – on the east side of the Empress Hotel site
+ Westbank in JV to develop two San Jose projects – Park Habitat – mixed-use; office and retail
+ 3M Canada expanding production of N95 respirators; Canada and Ontario Governments and 3M each contributing $23.3 million for the facility; production of 25 million N95 masks/year for each government over 5 years
TECH Corner ...
+ Fengate Asset Management closed a JV with TowerCom LLC for build-to-suit multi-tenant wireless communication towers; terms not disclosed
WORK / ASSIGNMENTS WANTED:
+ listings – FOR SALE, FOR LEASE – Calgary, Red Deer, and Edmonton markets
+ foreclosure/court-ordered receiverships – commercial property Calgary, Red Deer, Edmonton, and Southern Alberta
+ commercial and residential property management assignments/tasks; lease enforcement, negotiation of renewals, single properties, and small portfolios
 
~ call me to discuss your requirements: Mark Kolke, 403-444-6939
~ or email me: kolke@markkolke.com

PROPERTY LINES - a monthly newsletter on happenings in the commercial real estate marketplace in Alberta and in other jurisdictions. This publication will be of interest to a wide audience of readers interested in the real estate industry and is particularly focused on issues of interest to:

- investment real estate professionals

- landlords, financial institutions and real estate lenders

- real estate lawyers, accountants, appraisers

- property managers and asset managers

- insolvency professionals, foreclosure services, service trades/contractors

- commercial, development, and income property investors

Commercial Agent | Property Manager /  Consultant | Office, Industrial & Education Facilities Specialist | Public-Private Partnerships (P3) | Commercial Property Sales / Leasing / Land + Residential Sales

Mark Kolke is an Agent/Realtor - licensed in Alberta for Residential, Commercial and Property Management ~ under contract to MaxWell Capital Realty
 
Property Lines is published monthly by MaxComm Communications, a unit of PLANDflex Corporation
Editor/Publisher: Mark Kolke
 
Q. - What is Property Lines, and why do I publish it?
A.1 - The what part: news of interest to commercial real estate investors, property managers, asset managers, lawyers, bankers, mortgage brokers, pension fund managers, accountants/insolvency professionals, and commercial real estate practitioners.
A.2 - The why part: I’ve been in this industry – finance, brokerage, leasing, property management, investment sales, litigation support, consulting – for a very long time. Our industry is shifting due to both economic and technology forces notwithstanding downturns, recessions, and COVID-19. For 21 years I’ve been publishing FACILITYCalgary on a weekly basis – and will continue, but readers have been asking for more background, detail, context, and trend information across the province, across the country and in other markets where we should be watching for change-leadership and trying to stay ahead of, or at least in step with, industry trends – so we better serve our clients and more professionally and effectively deliver our services.
Q. – How is Property Lines different from FACILITYCalgary?
A.1 – it’s not just Calgary focused, it’s about owning and managing, it’s about lending, it’s about income and valuation, it’s about what is going on around the commercial real estate industry in other jurisdictions beyond Calgary and Alberta
A.2 – it’s more depth; yes, the bullet points, but often more detail and information than we can deliver in the FACILITYCalgary format …. so, read both and you won’t miss anything!

CLICK HERE to sign up to receive PROPERTYlines free every month
PROPERTYLines - Copyright © 2020 , All rights reserved.
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PLANDflex Corporation -  Mark Kolke, President / Publisher
Agent/Realtor/Property Mgr. - under contract to MaxWell Capital Realty
 
→  6204B Burbank Road SE, Calgary, AB T2H 2C2
→ Phone: (403) - 253-2450 / (403) - 444-6939
→  Cell/Text: (403) - 312-8359
 
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