CBRE national investment team in Saskatchewan was tasked with a challenging disposition assignment in the sale of the former Nutrien headquarters office tower at 122 1st Avenue South in downtown Saskatoon, according to CBRE broker Michael Bratvold.
“Nutrien had recently relocated their head office to the new River Landing development, resulting in some significant vacancy in this tower,” Bratvold explained.
Nutrien had been virtually the only tenant in the 156,000-square-foot landmark.
The seller of the tower, Potash Corporation of Saskatchewan, listed the Nutrien tower with CBRE for $13.5 million.
The challenge also included the high vacancy rate in downtown Saskatoon, which is pegged at 22.9 per cent, one of the highest in Western Canada and twice the suburban rate in Saskatoon. A key reason is the relocation of tenants from the downtown to new towers at Triovest's River Landing.
However, a local buyer and developer, Duchuck Holdings Ltd. saw a significant value-add opportunity by repositioning the asset and implementing an aggressive leasing strategy.
Duchuck paid the full list price for the 11-storey tower, (now known as the PCS tower). The deal closed on July 5, 2022.
CBRE has been engaged to lead the leasing program for the PCS Tower, Bratvold confirmed.
