True North Commercial REIT agrees to sell Calgary office for $57.0M, below its 2019 price
Under the radar: True North Commercial REIT has agreed to sell a large Calgary office property for materially less than it paid for it in 2019, with proceeds directed to debt repayment.
On Nov 2, True North entered a binding agreement to sell 3699 63rd Avenue NE, Calgary, a 209,400 sq ft office property, for $57.0M. Closing is expected about Dec 14, and proceeds will repay credit facility debt after the existing mortgage.
The same property closed as an acquisition on Nov 4, 2019 at a $100.5M purchase price, as part of a two property buy. At that time it was 100% occupied by ATB Financial.
For office investors, the gap between the $100.5M acquisition price in 2019 and the $57.0M sale price agreed in 2026 is the repricing in one asset. Buyers should price suburban and secondary office on current occupancy, current tenancy, and debt repayment pressure from sellers, not on pre 2020 trade prices.
Source: True North Commercial REIT agreement, Nov 2, 2026.
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