City Sells Once-Imperiled Tower

A LEED Gold tower built on spec by the City of New Westminster after a deal with a developer fell apart has been sold to another private developer. (There goes our big idea for a sitcom: My Landord--The Mayor.)

Merchant Square, the office tower under construction as part of the Anvil Centre, was sold to 777 Columbia for $36.5M. Another developer had partnered with the City in 2011 to build the office tower before backing away. In 2012, the City made the controversial decision to develop it on spec. Merchant Square will be a nine-storey, 137k SF Class-A tower. Based on this rendering, the tower will feature translucent ghost trees. So, don't make them angry.

777 Columbia is a company jointly owned by Kingswood Capital and Duke Holdings. Kingswood is majority-owned by noted Vancouver businessman and philanthropist Joe Segal. The purchaser assumes responsibility for tenant improvements and leasing. In 2012, we started building "knowing the many benefits that this project will bring to the city,” Mayor Wayne Wright says. Pictured: the mayor and Lynne Yelich, Minister of State for Western Economic Diversification.

Both the office tower and Anvil Centre should finish this spring. The City retains ownership of Anvil Centre—which includes a mid-sized conference facility, fee-simple land, ground-level retail space and a three-level underground parkade. Cushman & Wakefield did the office deal. C&W SVP Mark Chambers says the building “hits the mark” on key drivers for tenants—it’s on transit, environmentally conscious, amenity rich.