The shuttered Hudson's Bay building on Granville Street in downtown Vancouver is subject to a pending sale to Onni Development Capital as part of bankruptcy proceedings, according to creditor documents filed in Ontario.
Onni's Pending Acquisition
The Hudson's Bay downtown Vancouver store, the once-proud B.C. western flagship of the department chain for over 100 years, has been sold to one of the province's largest developers, Onni Development Capital. While Onni has not confirmed the deal, the purchase agreement and sale document is included in the sixth and latest report into HBC's receivership released this week by FTI Consulting Canada in Ontario.
Details from Creditor Documents
The receiver's report indicates that the six-storey-plus-basement Vancouver store at the corner of Georgia and Granville streets is among four sales the receiver recommends the courts approve. The other three stores are in Ottawa, Calgary, and Windsor, Ontario. The purchase prices were redacted in the documents, a protection for partners RioCan Real Estate Investment Trust and HBC in case any deals fall through.
Future Plans for the Site
The store has been closed for almost a year, and real estate observers suggest it may be years before the public learns what is planned for the heritage-protected building. Susan Thompson, a commercial real estate analyst for Colliers Canada, noted, "I would think it would be a year or two before we even see a plan for the site, unless they went into this with a very big plan."
Potential Development
Onni, involved in residential, commercial, office, and mixed-use retail projects, may develop the landmark site into multiple uses. Thompson highlighted that density will likely need to increase, as vertical growth is the only way to expand in Vancouver. She added, "It's going to be a great site for commercial use, and there's a lot of potential to include street-facing stores that improve pedestrian culture."
Market Context
In her first-quarter overview of Vancouver's downtown, Thompson noted the office market faces a prolonged recovery, with vacancy rates expected to take 3.5 years to reach a balanced 10 percent. Meanwhile, the condo market has softened, and a glut of rental units is pushing rents down. Despite these challenges, Thompson believes Onni can take its time given the prime location.
Community Sentiment
Thompson emphasized the emotional connection to the site: "HBC holds a very big piece of everyone's heart and soul, and we all want to see something there that they can connect with." She pointed to the transformation of the nearby Canada Post plant into the Post as a successful example of adaptive reuse.
The sale is part of the liquidation of RioCan-HBC Limited Partnership's Canadian real estate assets. The receiver's report was first obtained by freelance real estate reporter Howard Chai.
