It’s a prime piece of real estate in an area of Burnaby that continues to develop. Now Metro Vancouver has to figure out how it wants to sell its 4330 Kingsway headquarters and get the biggest return.
In about a year from now, some 900 staff at the regional district head office will be moving to their new digs a short distance away at Metrotower III in Metrotown Centre.
At about that time, Metro Vancouver hopes to sell the current office. Board chair Greg Moore said the regional district is still in the process of deciding exactly how it wants to sell the property, either by putting it on the market or through a request for bids.
He said the organization will be hiring a firm to help with the process.
“I think the process is extremely important,” Moore told the NOW. “[For] A project like this, that’s its open and transparent and people understand what we’re going through and how we’re positioning the building when we sell it.”
The property was assessed at $86 million, but the board chair suggested that would be on the low side and that a new assessment will be undertaken.
Moore believes the location of the current office will be a sought after property when it comes time to sell, pointing out the growth in the area.
In December, Metro Vancouver bought Metrotown III for $205 million from Ivanhoé Cambridge with plans to have all the staff moved in by 2017.
It’s expected Metro Vancouver will take about 13 or 14 of the 29 floors, while five floors are already taken up by long-term tenants. Moore said the district has hired a firm to help construct and design the offices for Metro Vancouver.
The district also made a business case for the building, suggesting it will save taxpayers in the long run.
The operating budget for the new building is $4.2 million, compared to $5.6 million in the current office, with the savings expected to continue for the next 20-plus years.
Part of the business case for the purchase includes finding tenants for the remainder of the floors. Again, Moore is confident in filling the building noting realtors working with the organization believe there is demand for office space, especially given the location near SkyTrain and amenities.
“We think there is going to be a good appetite for office rental space there,” he said.
Burnaby Mayor Derek Corrigan said the city will be working with Metro Vancouver on the sale of the old building and its future land uses before it goes on the market.
“This is to all of our advantages to make sure they’re maximizing the profit they can make out of the building, or at least making sure they’re able to recoup their money,” he said.
And Corrigan, like Moore, is confident the location will be a big selling point for the property.
While the mayor said the city has no interest in purchasing the building, he suggested in the long run it will probably become part of a bigger development.
“We don’t think it will sit there idle; it’s too big of an investment,” Corrigan said. “I think it’s such an important location in what is in essence a gateway to Metrotown.”
