Los Angeles-based Hudson Pacific saw an excellent opportunity to invest in Canada’s growing retail CRE market at a time when Vancouver’s tech and innovation market is booming.
The real estate investment company quickly made plans for some significant renovations. While aimed to retain the building’s retailers and attract new tenants. The renovations are focused on providing a safe post-COVID work environment that will draw people back to downtown Vancouver.
Revitalizing the Four-Tower Bentall Centre Complex
Hudson Pacific Properties partnered with Blackstone Property Partners in May 2019 to acquire the legacy Bentall Centre office and retail complex for a whopping $1.06 billion.
Now in 2020, they are working on major upgrades at the Bentall Centre. The upgrades include constructing a big athletic centre with top-notch fitness equipment, showers, change rooms, towel service, and bike storage.
Tower Four will also feature a YWCA fitness and racquet club, and the Thurlow Parkade will get five murals on both the interior and exterior walls.
Another fascinating addition to the complex is a rooftop dog park for all the canine friends of the building’s tenants.
Hudson Pacific is also transforming the outdoor plaza overlooking Dunsmuir Street and the outdoor plaza facing Burrard Street. It plans to expand the area and construct a wooden deck where the tenants will spend time with one another at a safe physical distance. The company will also enrich the plaza with greenery and a canopy of programmable LED lights, like the ones found on both Tower One and Two.
Overall CRE investment groups like Hudson Pacific and Blackstone Property are not slowing down because of COVID. They are finding ways to improve their assets.
Retaining the Majority of Retail Tenants
The Bentall Centre enjoys 97% occupancy now, even with all the struggles that the retailers went through to overcome the pandemic storm.
Thanks to Hudson Pacific’s assistance and the government’s help, most retail tenants in the building have managed to keep their doors open.
They only had to pay 25% of the rent when their stores were closed, with the government covering 50% and the landlords forgiving the remaining 25%.
Chuck We, senior vice-president of Hudson Pacific Properties, Western Canada, genuinely wants to protect the Bentall Centre’s retail tenants and help them attract employees and customers.
“We believe in the retailers down there, lots of small, locally-owned family businesses. And being part of the community, it was important to us that we help in any way we could,” said We.
Canadian retail CRE market continues to grow, offering lots of new opportunities to investors.
Hudson Properties move into the Vancouver market is another example of how their investment will help get retailers back to work safely while simultaneously driving more foot traffic and increasing revenue. The company investment decision is a great model for retail CRE investors who are looking to expand into Canada.
It’s vital to seize such opportunities in these unprecedented times. Contact ReDev today to get started.