Maroc - STOREYS.COM - A La Une - 29/Aug 15:47

Guardian Office Building In Edmonton Under Receivership Listed For Sale

After being placed under receivership in early-June, the Guardian Building in Edmonton is now looking for a new owner, according to the court-appointed Receiver and a listing.The Guardian Building is an office building constructed in 1971 that sits at 10240 124 Street in Edmonton, about midway between Stony Plain Road to the north and Jasper Avenue to the south.The property is owned by 1643680 Alberta Ltd. and a Summary Judgement issued by the Court of King's Bench of Alberta dated June 5 lists the company alongside Parmjit Nijjar, Harnek Matharoo, and Kulwant Singh Grewal as the respondents.A Notice of Receiver states that 1643680 Alberta Ltd. is in the business of owning and operating the Guardian Building, and is based in its own building. The receivership proceedings were initiated by Canadian Western Bank, who was owed $13,018,893.19 as of May 16. The Receiver also states that there are outstanding amounts owed to the Canada Revenue Agency and City of Edmonton, but the amounts were not disclosed. The company also owes $334,876 to various other unsecured creditors. The Guardian Building at 10240 124 Street in Edmonton.(JLL)The PropertySince the company was placed under receivership in June, the Guardian Building has been listed for sale by Jones Lang LaSalle Real Estate Services (JLL), without an asking price.Address: 10240 124 Street, EdmontonYear Built: 1971Floor Space: 82,502 sq. ftPrice: UnpricedListed By: JLL (Adam Kilburn, Andrew Simpson, Michael Seidel)"The Offering presents an investor with the opportunity to acquire a 82,502 SF office asset in the heart of the densely populated 124th Street sub-market," said JLL. "Currently 20.0% leased with a weighted average lease term (“W.A.L.T.”) of 6.80 years, the Offering provides an investor with a value-add opportunity well below replacement cost, with the ability to optimize, convert, or re-work an office tower unencumbered by leases."According to JLL, the Guardian Building has 11,200 sq. ft of street-front retail space and is currently home to 13 tenants. One of those tenants is Royal West Homes Inc., whose President is Harnek Matharoo, one of the listed respondents. Other tenants include an OEB Breakfast, Sip Liquor Market, and Shell Shock Cannabis Culture Shop, among others, according to Google Maps. The interior of the Guardian Building at 10240 124 Street in Edmonton.(JLL)JLL is marketing the property as one that can allow a buyer to "capitalize on the reemergence of the office market." "Similar to many North American cities, the Edmonton office market remains somewhat challenged; however, there are indications that a reemergence of the market is underway. Suburban office vacancy rates are dropping quarter-over-quarter which historically translates into increased activity in the core."Conversely, JLL is also positioning the property as a potential office-to-residential conversion asset."With floor plates measuring +/- 11,600 SF and an office tower nearly unencumbered by leases, the Guardian Building presents well for a potential multi-family conversion," said JLL. Between January 2023 and June 2024, 12 office buildings in Edmonton were sold and all 12 were sold to local, Edmonton-based investors, STOREYS previously reported. Time will tell if that trend extends to the Guardian Building.