The City of Calgary says there are no permit applications yet for the Downtown Bay building.
“From the Downtown Strategy side, The City doesn’t share information on applications to the downtown incentive programs, only on projects approved to receive funding. At this time, The Bay building is not approved for funding under any downtown incentive programs,” said the City in response to an inquiry by Retail Insider.
The 115-year-old downtown Bay building was sold by CBRE’s National Investment Team – Calgary to local developer Astra Real Estate Corp., which has been active in recent years in repurposing older downtown office properties into residential conversions.
Astra has remained quiet about its plans for the iconic Bay property and have not spoken to the media about the acquisition.
CBRE said the 448,834-square-foot, six-storey property is clad in terracotta and was the model for subsequent Bay buildings in Vancouver and Victoria.
In a report on its website, CBRE said Calgary NIT lead Richie Bhamra brokered the sale of the building and said the marketing process resulted in six bids for the asset, three of them unconditional offers. Astra, a firm that specializes in office-to-residential conversions and adaptive reuse, proved to be the successful proponent.
“This could be a great redevelopment site,” said Bhamra in the article. “There is a real opportunity to make a significant impact on the downtown core.”
The Bay building was constructed between 1911 and 1913 as Canada’s largest department store, and was expanded in 1929 and 1956, noted CBRE.
“The expanded areas can be identified by the wider column spacing on the southern half of the building, which resulted in floorplates that are quite large, at 60,000 sq. ft.,” said Bhamra.. “So it took some creative conceptualizing from the groups that were looking at buying it.”
The building, which sits on 1.65 acres of prime real estate along Stephen Avenue, is “a key piece of our downtown core,” said Bhamra. “It’s a great area for tourism and business, with lots of restaurants and pedestrian traffic. So hopefully no matter what ends up happening with the property it remains an active site.
“Because no other repurposing project in the downtown core will have a bigger impact than this.”
Michael Kehoe, Broker at Fairfield Commercial Real Estate, said local attention is now focused on the future of the downtown Calgary flagship Hudson’s Bay Company building, which sits largely vacant under new ownership.
“Calgarians are eagerly awaiting the new owner’s vision for redeveloping this landmark property, a project that will undoubtedly present significant challenges. Modernizing the building’s mechanical systems, electrical infrastructure, and structural components will require a substantial investment. Even so, the property represents a remarkable opportunity to breathe new life into one of downtown Calgary’s most recognizable buildings,” he said.
“A variety of redevelopment concepts are likely under consideration, including residential housing, a boutique hotel, and ground-floor retail and food and beverage spaces. Similar adaptive reuse projects involving former Hudson’s Bay stores are already underway or being planned in other Canadian cities, demonstrating the potential these iconic properties hold for revitalization.”
The downtown Calgary landmark is awaiting a fresh vision for its next chapter, said Kehoe.
“Whatever ultimately takes shape will almost certainly become a legacy project—one that captures the city’s attention and makes a lasting statement about the future of downtown Calgary,” he said.
“Interestingly, the building is not protected by provincial or municipal heritage designation. Even so, I am optimistic that the new owner will respect its rich history while embracing an exciting future. I hope to see an adaptive reuse project that preserves the historic arcade and the beloved façade that generations of Calgarians have come to know, while thoughtfully incorporating contemporary architectural elements that celebrate the building’s next chapter.
“As someone who has long appreciated historic commercial architecture, I remain optimistic about what lies ahead. With the right vision, this iconic building can once again become a vibrant destination and an important part of Calgary’s evolving downtown story.”
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