R2 Capital Expands Office Portfolio with Calgary Acquisition
R2 Capital's Strategic Entry into Calgary Underscores Emerging Opportunity in Suburban Office Market
CALGARY, AB, Sept. 2, 2025 /CNW/ - R2 Capital Partners Inc. has expanded its portfolio with the acquisition of One & Two Executive Place, a pair of Class A suburban office towers located along Crowchild Trail, across from MacMahon Stadium in Calgary. The transaction was completed at a purchase price of $160 per square foot, well below replacement cost, for a total of 119,030 square feet of leasable space across 1.53 acres.
The two buildings were constructed by 2006 and stand four and seven storeys in height. They are fully leased to 14 tenants with government covenants accounting for 32 percent of occupancy. Supported by medical groups, multinational corporations, and government offices, the tenant base is long-tenured, averaging more than 10 years in occupancy, underscoring stability and durability of cash flow.
This acquisition reinforces R2 Capital's thesis that Calgary's suburban office market represents one of the strongest risk-adjusted return opportunities in Canada.
"While downtown Calgary continues to face elevated vacancy and investor caution, suburban assets remain highly resilient, underpinned by stable tenant demand and institutional-quality covenants, yet are trading at deep discounts to both historical values and replacement costs", said Brock Rogerson, Managing Partner at R2 Capital Partners.
"Over my investment career, and as a born-and-raised Calgarian, I have never seen an opportunity where the fundamentals align this strongly for a real estate investment in Calgary."
Financial performance is immediately accretive, with the stabilized asset delivering an in-place cap rate exceeding 12 percent. The purchase was completed at a 59% discount to the value it last traded in 2014, when it sold for $46.55 million.
Positioned just one block from the Banff Trail LRT station, the buildings offer tenants direct access to a 10-minute commute to Downtown Calgary and immediate connectivity to major arteries such as Crowchild Trail and 16 Avenue NW. The properties are also surrounded by key institutional and healthcare anchors including the University of Calgary, Foothills Medical Centre, the Arthur J.E. Child Cancer Centre, Alberta Children's Hospital, and North Hill Shopping Centre, further reinforcing the desirability of the location.
R2 Capital views this transaction as the beginning of a broader Calgary strategy designed to capitalize on the divergence between downtown and suburban markets, with additional acquisitions anticipated in the months ahead.
R2 Capital Partners Inc. is a privately held, real estate investment firm, offering investors diversified exposure to residential and commercial real estate. Utilizing a vast network of partnerships, relationships, and industry-leading technology to capitalize on emerging markets across North America. Learn more: http://www.r2capital.ca
SOURCE R2 Capital Partners Inc.
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