Historic Hudson’s Bay building in downtown Calgary to be acquired by redeveloper

Calgary’s iconic and mostly vacant downtown Hudson’s Bay Building is on the verge of being acquired by a Calgary real estate firm known for property redevelopment.

Court filings indicate Astra Real Estate Corp. entered into a purchase agreement for the 114-year-old building on Feb. 18, with an outside completion date for the deal listed as May 30.

It joins agreements in place to purchase Hudson’s Bay buildings in Vancouver, Ottawa and Windsor that involve different buyers.

A spokesperson for Astra wouldn’t comment on the move “until we take possession.”

The company has been involved in a number of office-to-residential conversions of downtown Calgary, which have included a focus on affordable housing.

The impending Calgary deal could be a major step in preserving cherished elements of the structure in the heart of downtown, after its operations ceased last June with the financial collapse of the historic Hudson’s Bay retail empire.

The six-storey, Chicago commercial-style building with its terra cotta cladding was a model for the Bay’s western Canadian expansion, with architecturally notable stores following in Vancouver, Victoria and Winnipeg.

Since the store’s closure, concerns have arisen over its future, preservation and the deterioration of the aging building’s condition.

It lacks municipal or provincial historical designation, which would prevent demolition or significant alteration, and refurbishing its electrical, mechanical and structural integrity would cost many millions of dollars.

The National Trust for Canada included the building in its endangered places list last fall.

The Hudson’s Bay Co. had entered into a joint venture with RioCan Real Estate Investment Trust. After the Bay filed for creditor protection a year ago, RioCan indicated it wouldn’t invest any more into the site.

The news of the purchase was welcomed by downtown business and historical preservation groups.

“Astra Real Estate Corp. . . . have a demonstrated history of working with heritage properties and a strong track record of preservation and stewardship,” said Erika Topola, executive director of Heritage Calgary.

“Historic buildings are important anchors of Calgary’s identity, and it is exciting to see this landmark move into the hands of owners who understand the value of protecting architectural character while thoughtfully planning for its future. We look forward to seeing how this iconic building can continue to contribute to the vibrancy and story of our downtown for generations to come.”

The Calgary Downtown Association was similarly upbeat, saying it looks forward to discussions with Astra on how best to preserve the historically important and economically viable aspects of the “downtown landmark.”

“The building holds generations of memories for Calgarians, and its future will play an important role in the continued vibrancy and momentum of Stephen Avenue and downtown Calgary,” association spokesperson Bre Tighe said in an email.

In recent years, the building has become host to an events centre on its sixth floor and a restaurant on the bottom level.

Commercial real estate experts have said the downtown structure has considerable potential to be further subdivided for commercial and residential use, while ideally preserving its iconic facade.

The building has a rich history of expansion and redevelopment, undergoing changes in the 1930s and 1950s, and successive modernizations.

In its heyday, the downtown Bay boasted 40 departments, including a post office, telegraph station, men’s smoking lounge, nursery, library and medical clinic.