Goodman Real Estate plans to build a high-rise next to the historic building
Fiona Anderson
Sun
VANCOUVER SUN FILES The 12-storey Crowne Plaza Hotel Georgia was built in 1927. Goodman Real Estate wants to build a 47-storey high-rise next to it, dedicating the top 35 floors of the new complex to condos
The historic Hotel Georgia in downtown Vancouver has been sold for a reported $65 million to Seattle developers that plan to build a 47-storey high-rise next to the existing hotel.
Goodman Real Estate Inc., along with an undisclosed partner, purchased the 12-storey hotel, built in 1927, along with the adjacent parkade, from Allied Hotel Properties Inc. and its majority shareholder, Allied Holdings Ltd.
Goodman representative Steven Schneider refused to disclose the amount, but said the $65 million reported earlier Monday was close.
The current plan for the property, which is still in the concept stage, is to dedicate the top 35 floors of a new complex to condominiums, with the use of the bottom 12 floors still to be determined, Schneider said.
Previous plans by Vancouver architect Bing Thom, while attractive, were unworkable, Schneider said, so Goodman decided to go back to the drawing board.
Developing the site will be challenging given that the Hotel Georgia’s facade and parts of its interior have historical designations, Schneider said. But that won’t deter Goodman.
“We like historic buildings. We recognize the value to the community [and] we think we do a good job of protecting them while making them viable,” Schneider said.
Goodman is eminently qualified for the task. A few years ago it purchased and developed the Dexter Horton building in Seattle, a building designed and built by the same people who built the Hotel Georgia almost 80 years ago.
But before shovel can hit dirt, Goodman has to work with the city to define what the project will be and Schneider expects that to be a year-long project. Goodman hopes to start building in early 2007.
“We’re excited about it. We like the property. We’re excited about being apart of the history of Vancouver with the Hotel Georgia. and hopefully we can develop that into something that’s worthy of that corner,” Schneider said.
Allied Hotel Properties will continue to manage the hotel on behalf of Goodman, Allied Hotel’s president Michael Chan said in an interview.
Chan said Allied Hotel was happy with the deal.
“We think [Goodman] will do a great job on the development of that site,” Chan said.
Allied bought the Hotel Georgia eight years ago for an estimated $45 million and has spent more than $10 million refurbishing the hotel since then.
The sale will enable Allied Hotel to repay approximately $42 million of debt, the company’s Management’s Discussion and Analysis for the six months ended June 30, 2005 said.
Goodman has been in the real estate investment business for 25 years in the U.S.
It is a partner in the Royal City Centre mall in New Westminster and the Boitanio Mall in Williams Lake, its first forays into Canada.
“We like Vancouver a lot,” Schneider said. “I think it’s a real solid economy. I think it’s got a good future.”
© The Vancouver Sun 2005