New article from Winnipeg Free Press about 127 Bannatyne:
New highrise labour of love
Alston Properties, Concord Projects making ‘emotional investment’ with 10-storey building in east Exchange
By: Martin Cash
Posted: 5:56 PM CDT Friday, Aug. 2, 2024
It was an on again/off again project for several years but construction at 127 Bannatyne is now well underway on the first high-rise building in the east Exchange in almost 50 years.
And were it not for the fact the 10-storey, mixed-use project was a labour of love for its co-developers — Alston Properties and Concord Projects — and that they are both seasoned practitioners with high-end construction expertise, the project would never would have got out of the ground.
For starters, the former surface parking lot wedged between two very old buildings would have made most construction companies take a hard pass because of the logistical challenges.
But both Bryce Alston, director at Alston Properties, and Nolan Ploegman, president and CEO of Concord Projects, have ulterior motives — they both sincerely want to do their part in the ongoing efforts to revitalize downtown.
Concord, which has had its head office on Henderson Highway for its entire history, will move its staff of 65 people into the second floor of the $30 million-plus, 100,000-square-foot building which is scheduled for completion in the spring of 2025. The street level will have retail and there will be 80 apartments on the top eight floors positioned at the higher end of the market.
For Alston, whose company has already redeveloped five other old buildings downtown, it is seen as a legacy project as well as providing some synergies with its other downtown residential properties.
For Concord and Ploegman more specifically, who bought the company from its founder Ted Paetkau 10 years ago, there is an up-front emotional motivation.
“An out-of-province developer would not take on a project like this,” said Ploegman. “The return on investment is quite a bit lower than what you would see on a typical investor-funded project. It takes a family like the Alstons and someone like myself with an emotional investment. We are not doing this one to maximize our returns.”
Alston acquired the surface lot in 2018 as part of its purchase of the old passport building on the southeast corner of Main Street and Bannatyne Avenue. It has since converted the top nine floors of that 14-storey former office building into residential units.
(Coincidentally, that was the last high-rise built in the neighborhood, completed in the mid-1970s.)
Altson has taken on a number of challenging downtown projects including the Pumphouse buildings, 165 McDermot Ave. and 316 Ross Ave.
“This one was always a bit of a coin toss as to whether we were going to proceed,” said Alston. “It is such a challenging project from a constructability point of view and from a (financial) feasibility point of view as well. The margins are extremely tight.”
The project has what’s called 100 per cent coverage. It’s being built from lot line to lot line, right up against each of the neighbouring buildings. There is no area for staging materials and equipment. Every delivery has to be just-in-time.
“Because there are two heritage buildings on either side, the foundation is very expensive and intricate. It is an extremely complicated build,” Alston said. “That’s why I am very happy that Concord Projects is building it. They are a very, very capable construction manager.”
A few years ago when Ploegman realized Concord had outgrown its existing office he contacted Alston, an industry peer, about the possibility of partnering on the project.
“Realizing we were going to have to sell our building and needed to move I thought about where in the city I would like to be,” he said. “I love the downtown and specifically the Exchange District. It’s a national historic site and it’s my favourite part of the city. I think it is the gem of Winnipeg. So, my own bias was kicking in.”
Ploegman was also attracted to the possibility of being a catalyst for others to take a chance on downtown.
“We all want the downtown to be great, he said, “We can show others that you can build a new building in one of the hardest areas of the city to build in. It is possible.”
The development of the project was paused during the pandemic. It was also shelved at another time when the financial projections deemed it impossible.
When they were told they would have to be responsible to replace and rebuild the ancient Hydro infrastructure in the back lane, that too was almost enough of an additional cost to call the thing off.
Some vocal opposition by neighbours because of its height, caused it to be downsized by a couple of storeys.
Eventually it was the recipient of tax increment financing from the city that was then matched by the province.
“It saved the project,” said Ploegman. “It was not going to happen without the support of the province.”
And it would likely not happen without the kind of partnership that has occurred.
David Pensato, the executive director of the Exchange District BIZ, said that while some neighbours may still not be happy with the height, it is within the zoning height restriction.
“It is definitely going to enhance the area,” Pensato said. “Alston Properties already has a great track record in the neighbourhood for really great, sensitive infill projects. I would love to see other people taking a page from this playbook.
That’s the kind of outcome Ploegman would like to see emerge as well.
“I tell everyone that I truly want to be a champion for the downtown,” said Ploegman. “This is my small contribution to bolstering downtown.”
martin.cash@freepress.mb.ca
https://www.winnipegfreepress.com/bu...labour-of-love
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