The City of Burnaby got a bargain on two Metrotown office towers last month.
The city purchased the 350,000-square-foot complex for $65 million, which was about $22.8 million below the property’s assessed value.
The property at 4330 Kingsway, owned by Slate Asset Management, had fallen into receivership in June.
It was a deal too good to pass up, according to the city’s chief administrative officer Leon Gous.
“The price was reasonable,” Gous told the Burnaby NOW.
“We buy real estate where it makes sense – especially if we can get it at a price that’s well below market.”
The 19- and 10-storey towers, known for their golden sheen, have been vacant since Metro Vancouver moved out in 2017, according to Gous.
Gous noted the city also owns properties on Kathleen Avenue.
“So it’s contiguous to a whole bunch of properties we already own for consolidation,” he said.
Staff are preparing a report for council consideration on the future uses of the buildings.
One of the options will be to renovate the space to reuse it as offices for a temporary city hall while the current facility at Deer Lake is redeveloped.
Whether the city would consider using the Metrotown site as a permanent city hall has not been discussed yet, according to Mayor Mike Hurley.
If the city decides to demolish the existing towers, the property could potentially be rebuilt as a mixed-use development including residential, Gous said.
There will be costs whether the towers are renovated or demolished.
The city paid for the property with money from its corporate and tax sale land reserve fund, which can be used for property purchase and improvements, according to Gous.
He said staff expect to bring the options to council early in the new year.
After council gives its direction, staff will then go to a bidding process for next steps.
