G2S2 Capital and its Armco Alberta subsidiary announced they have acquired one of Calgary’s trophy office assets, the 1.4-million-square-foot, four-tower Bow Valley Square.

"We are excited and proud to welcome Bow Valley Square, its 200 tenants and all of our new employees into our portfolio. " Steven Darrow, the president of Atlantic Canada and Alberta at Armco Capital Inc., said in the announcement. "This acquisition is an important milestone in our growth strategy, and underscores our belief in the success of Calgary and Alberta. 

“We look forward to building upon the legacy of this landmark while upholding the standards that have established Bow Valley Square as a premier choice for businesses. "

The complex was acquired from Oxford Properties.

Financial details have not been released.

Bow Valley Square encompasses approximately 1.4 million square feet of mixed-use office, retail and commercial space in four towers standing 17, 32, 37 and 39 storeys. The majority of the space is for office, while about 100,000 square feet is dedicated to retail.

Oxford and Bow Valley Square

Oxford conducted extensive upgrades to the property in 2019, investing about $40 million into the towers.

The company's website lists about 22,500 square feet of direct space available for lease in the towers, though a current figure for its overall vacancy was not immediately available.

"Having acquired Bow Valley Square in 1995, this sale culminates our strategic long-term hold period and the successful completion of our asset management plan following an extensive renovation program in 2019 to drive occupancy and maximize value," an Oxford spokesperson told RENX in an exchange of emails.

It is the latest in a series of transactions by the investment giant as Oxford builds up equity to begin reinvesting in what it sees as a market currently at or near the bottom in the pricing cycle. Among its most recent Canadian deals was the sale of two Toronto apartment buildings comprising 618 units to Starlight Investments in September.

"This sale is part of our strategy to opportunistically recycle capital across our global portfolio to continue to build dry powder as we look to reinvest into what we believe is an increasingly attractive real estate market," the spokesperson wrote.

"This includes assessing new opportunities in Alberta, where our conviction in this market is supported by more than $3.7 billion of AUM across office, retail, industrial and hotel investments."

Features at Bow Valley Square

The complex acts as a “one-stop destination” according to G2S2, with its retail tenants including a range of services, banking, restaurants and dining options. The complex is directly connected to the city’s +15 skywalk system, providing access to Calgary's other key business hubs, retail destinations and essential services.

Bow Valley Square’s amenities include:

• Bow Valley Athletic Club: An athletic and social club offering access to fitness equipment, squash courts, steam rooms and wellness services.
• Fitness centre: A fully equipped facility exclusively for tenants, complete with an online booking system and a dedicated mobile app.
• HUB Lounge: A communal space featuring a rooftop patio, a communal green space and BBQs.
• Conference centre: A state-of-the-art meeting facility equipped with the latest audio-visual technology for presentations and events.
• Executive bike room: This facility includes secure bike storage, repair and wash stations, and executive lockers for tenants.
• Co-working space: A modern, flexible workspace ideal for entrepreneurs and freelancers looking for a collaborative environment.
• Childcare facilities: On-site childcare and early learning services for children ages 12 months to five years.
• 800 parking spaces.

About G2S2 Capital Inc. and Armco Capital Inc.

G2S2 Capital Inc. is a privately held investment holding company focused on creating value across a variety of businesses with a long-term horizon. Armco Capital Inc. and Armco Alberta are wholly owned subsidiaries of G2S2 Capital Inc.

Founded in 1982 by the Armoyan family, Armco Capital has evolved from a small family business into a diversified and dynamic group of companies. 

Armco Capital Inc. is among the largest Canadian organizations of its kind, managing a diverse portfolio of assets across North America.