Vancouver’s Reliance Properties is buying the historic Board of Trade Building in Bastion Square, betting that downtown Victoria is tipping toward prosperity.
“The underlying premise is that we feel very bullish about the future of the region, and downtown Victoria in particular, even though there are some signs of weakness and transition probably related to the mall at Uptown,” Jon Stovell, Reliance president, said Tuesday.
“What happens is there is a tipping point where enough people move into the downtown as a whole ... and suddenly the downtown just switches on and becomes more and more popular and more appealing from that point on. We feel like Victoria is kind of on the brink of that.”
Along with condominium projects in Reliance’s Northern Junk and Janion Hotel buildings in downtown Victoria, Stovell listed several other developments in the works that he believes will contribute to a surge of life downtown.
“Cities are where everybody wants to be now, not in the suburbs. It’s happening in the large cities in the world like New York, London and Paris. It’s happening a lot in Vancouver.”
Stovell is banking on Victoria booming for a number of reasons: it is a walkable city in a region that is continuing to grow, and it has an increasing number of young people as well as quality schools.
“I think the city is due for a really big comeback.”
The purchase of 31 Bastion Square closes at the end of this month. The four-storey building, with a basement, has 33,000 leaseable square feet.
Most of the space is filled. Tenants include a travel agency, surveying firm, college, high-tech company and consulting companies. Designed by architect Maxwell Muir, the 1892 Board of Trade Building is one of Victoria’s most notable structures. It was renovated and modernized in 1971. “The facade’s decorative elements illustrate architect A.M. Muir’s familiarity with both the High Victorian eclectic style and Richardsonian Romanesque,” according to the University of Victoria’s art collections arm.
As an investment property, the Board of Trade building is similar to the dozen holdings Reliance already owns in Vancouver. Reliance is a major developer of new buildings and redeveloper of older properties. Its Burns Block micro-loft project on Hastings Street won international attention.
Cosmetic improvements are planned for the interior of the heritage-designated Board of Trade building and the exterior will be cleaned up as well, Stovell said. “We do want to take a stake in the future of the neighbourhood.”
