COMMON BARRIERS TO OFFICE-TO-RESIDENTIAL CONVERSION
NE OM A
T H E C O R N E R ST O N E
70 6 7 Ave . S .W.
909 5 Ave. S .W.
n 2021, the HomeSpace Society acquired downtown’s Sierra Place for $4.7 million, with the purpose of transforming it into affordable housing. Long past its former days as the headquarters of Dome Petroleum, the 1958 building had sat fully vacant since 2019. But, like Strategic Group’s Stephenson Building, the features that made it unattractive as office space made it suitable for residential conversion. In the fall of 2021, conversion of the 10-storey building began, but so did the challenges inherent to co-ordinating design, demolition and construction — all at the same time. While the building had “good bones,” some components couldn’t be preserved, despite their heritage value. Sierra Place’s unique aluminium facade with granite-clad pillars had reached the end of its life and didn’t meet current fire ratings, so it was replaced with metal panel cladding. Using an innovative approach based on trauma-informed design, the architectural program of the building included 82 familysized and single-sized units plus 10 units of second-stage housing, as well as wraparound services for Inn from the Cold families. At a total cost of $20 million, in September 2022, Neoma was ready to welcome families in need — on time and on budget. The array of bachelor, two- and three-bedroom apartments offer safe and stable places to live for lowerincome Calgarians. Monthly rental rates range between $608 and $968 — about 37 per cent lower than market rate.
ormerly the SNC-Lavalin Building, The Cornerstone was part of the first round announcements of the Downtown Calgary Development Incentive. It is currently under construction, with substantial completion expected by the end of this year. Constructed in 1978, the building was purchased in 2021 by Peoplefirst Developments, just weeks after the City’s incentive was announced. “The moment it became clear that the City grants were coming to fruition, we decided to pull the trigger on the building,” says Maxim Olshevsky, managing director of Peoplefirst Developments. Although the amount Peoplefirst paid is confidential, at its peak in 2014, the building’s assessed value surpassed $40 million. After sitting vacant for nearly a decade, it was listed in 2018 by Colliers International for $18.5 million. With an estimated cost of $38 million, upon completion, the 10-storey building will feature 112 two- and three-bedroom units, with 40 per cent to be rented at below-market rates. The units will have in-suite laundry, marble countertops and stainless steel appliances — what Olshevsky deems “attainable luxury.” “Our goal is to find the perfect balance between cost and value,” he says. Olshevsky acknowledges the incentive provided by the City greatly reduces the risk for Peoplefirst to do these types of projects. In April, the company added the Petro Fina Building to its City-supported conversion portfolio, and has its sights set on Place 800, an 18-storey office building west of downtown.
P H O T O SG RBAYP SHT BE VY ET CK OTLKL ITNKS ; R E N D E R I N G S U P P L I E D B Y P E O P L E F I R S T D E V E L O P M E N T S
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The size and shape of a floor plate is key to determining the suitability of a building for conversion. If a floor plate is too deep, the long distance between the building’s envelope and elevator shaft can result in poorly lit units, undermining the livability of these spaces. Post-tension concrete is a type of structure that can jeopardize the conversion of a building, as the perforations required to introduce plumbing and electrical installations for residential units could cause irreversible damage to the structural integrity of the building. Many office building envelopes, especially in older structures, aren’t always conducive to residential use. Depending on the difficulty and cost to either preserve, upgrade or replace glazing to meet fire and building codes, as well as environmental standards, building envelopes can make or break a conversion project. In many cases, demolition, design and construction take place at the same time. This poses significant coordination challenges, especially for developers whose expertise lies in new construction. While not related to the buildings themselves, the presence of neighbourhood amenities — such as grocery stores, parks and schools — is key for the success of these buildings in attracting long-term tenants.
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