In a significant vote of confidence for Edmonton's core, a prominent downtown office tower has changed hands in a multi-million dollar deal just before the new year. Josan Properties Ltd. has finalized the acquisition of the Intact Building located at 10830 Jasper Avenue, with the transaction closing last week for a reported $24 million.
A Strategic Acquisition in a Rebounding Market
Raka "Rocky" Josan, the president and CEO of Josan Properties, described the purchase as an opportunity too compelling to ignore in a market showing clear signs of heating up. The 11-storey building is a well-known fixture on Jasper Avenue, housing major tenants including Intact Insurance, administrative offices for NorQuest College, and a ground-floor Rexall Pharmacy.
"We're still very bullish on office (buildings)," Josan stated, directly addressing the current climate. "Obviously, it's a depressed market, but that's a perfect opportunity for companies like ours to get in." This acquisition follows Josan Properties' previous major downtown investment: the purchase and renovation of Connect Tower (10020 101A Ave.), formerly the Phipps McKinnon building, which was completed in April 2024.
Local Investors Capitalize on Market Shift
Cory Wosnack, President and Managing Director of Avison Young Edmonton, who advised on the transaction, echoed the sentiment of a market turnaround. He pointed to the widespread implementation of back-to-office mandates across the region as a key driver reigniting activity in the commercial office sector.
"We're definitely through the bottom of the trough of the market," Wosnack assessed, referencing the severe downturn fueled by the COVID-19 pandemic. This shift has created a unique window for local and regional investors. Wosnack revealed a telling trend: over the past two years, 20 large office buildings in Edmonton (30,000 square feet or larger) have sold. Of those, 15 were sold by institutional investors, and the majority were subsequently purchased by private or regional investors using local capital.
Josan's latest purchase adds another data point to this pattern of local investment reclaiming downtown assets. He anticipates further strengthening of the market, noting that while a significant portion of the private sector has already returned to the office, the impending return of public sector employees in February could provide an additional boost to downtown vitality.
Looking Ahead for Edmonton's Downtown Core
The sale of the Intact Building on Jasper Avenue is more than just a single real estate transaction; it is a bellwether for investor sentiment in Edmonton's urban core. With strategic players like Josan Properties doubling down on their downtown holdings, it signals a belief in the long-term value and recovery of office space as hybrid work models stabilize and employers seek quality brick-and-mortar locations.
This deal underscores a broader narrative in the city's commercial real estate scene: a period of adjustment has given savvy, locally-rooted investors the chance to acquire prime assets, potentially setting the stage for the next chapter of growth and revitalization in the heart of Edmonton.
