Dream Office REIT and Pomerleau are partnering on a $70-million office-to-residential conversion project in downtown Calgary.

Pomerleau, an integrated real estate investment and development company making the investment through its financial arm, Pomerleau Capital.

The project is located at 660 Fourth Street S.W. and part of the city’s Downtown Development Incentive Program (DIP) whereby investors receive $75 per square foot to help reduced an abundance of underutilized office space. (Conversions of other assets receive less from the city.)

Plans call for the 135,000-square-foot former Barclay Centre to receive 166 new rental homes, including a mix of studios, one-bedroom, and two-bedroom suites. The project will contain a relatively large affordable-housing component that accounts for 27% of the units.

“Through our collaboration with Pomerleau Capital, this project showcases how innovation in design and development can redefine urban living,” said Jay Jiang, CFO of the REIT. “By thoughtfully adapting existing spaces, we’re creating distinctive homes that contribute to a more sustainable and connected downtown community.”

Philippe Adam, president and CEO of Pomerleau, said the conversion of unused offices into market and affordable housing offers a practical solution to Canada’s housing challenges. The country is suffering from what has been described as a chronic housing shortage.

Pomerleau’s wholly owned subsidiary ITC Construction will build the development.

Occupancy is slated to commence in 2027.

Pictured: Former Barclay Centre office building in downtown Calgary.

Photo: Dream Office REIT