In this weeks’ post, we want to draw attention to 95 Crowfoot Crescent NW in Calgary, a feature listing that we feel particularly passionate about. The chosen listing is a sale offering for a two-tenant pad site, 100% leased within long-term commitments, situated within the Crowfoot Towne Centre retail node of Calgary, Alberta.
In large part, we identify with this offering because we think it provides for a very secure/stable income stream with protected downside, and long-term upside potential.
Key features include :
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Strong Defensive Needs Retail
The two tenancies consists of HSBC Bank of Canada and Crowfoot Crescent Dental Clinic. We recognize the dialogue surrounding banks and whether their same physical footprints will be required moving forward, but we take comfort in the fact that HSBC already downsized at this location, reducing their ground floor area to +/- 3,500 square feet, which is consistent with new bank pad sites today. Furthermore, the HSBC space is outfitted with a drive-thru, which lends itself well to a variety of uses should their space ever come back in the future.
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Long-term Lease Commitments
Both tenants have a further eight years of term remaining, one with an incremental step up in rent mid-term. As such, the offering provides for a very dependable stream of revenue for the foreseeable future, which will lend itself well to securing debt, if desired.
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Future Upside
Both leases offer considerable upside in rates upon their expiries in 2027. Crowfoot Towne Centre is an exceptionally strong retail node which is evidenced by the rates being achieved in comparable spaces. Based on a survey of comparable units within close proximity, our belief is that both spaces are 15-20% below current market rates.
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Carefree Investment
Given HSBC was historically a single tenant at this location, they previously self-managed, and continue to oversee a lot of these responsibilities directly today. Accordingly, we think the property lends itself well to a BC-based investor seeking a hand-off investment – even more so given the fact that a comparable asset in BC would likely transact at a cap rate 100 basis points less than the offering.
Click here to access a copy of the brochure for the offering, and contact any of the undersigned for additional information.
Curtis Leonhardt* / cleonhardt@form.ca / 604 638 1999
Jon Buckley* / jbuckley@form.ca / 604 630 0215
Jackson Safrata / jsafrata@form.ca / 604 398 3658
*Personal Real Estate Corporation
