A significant office-to-residential conversion project was announced in Calgary on Wednesday. The initiative is part of the city’s downtown development incentive program, which began in 2021. The program aims to convert six million square feet of unused office space by 2031 and has already approved 21 projects.

Calgary Confederation MP Corey Hogan revealed that the federal government will contribute $64.3 million through the National Housing Strategy’s apartment construction loan program. The City of Calgary will add $10.5 million to support the project.

The 606 Fourth building, owned by Dream Office REIT and developed by Dream Unlimited Corp., will be transformed into 166 rental housing units, including 45 affordable units. Once completed, the building is expected to accommodate approximately 266 residents. Construction is set to begin later this year, with the project anticipated to welcome residents by the end of 2027.

Hogan emphasized the importance of the project, stating, "Today’s announcement is a major step toward providing safe, affordable homes for new immigrants, students, and young couples in Calgary." He noted the challenges families face in finding affordable housing that meets their needs.

The converted building will feature modern studio, one-, and two-bedroom apartments, including 17 accessible units. Residents will also have access to co-working spaces, shared fitness facilities, common areas, and an outdoor patio with a barbecue area. The location is conveniently situated near two CTrain stations and the downtown Core shopping center.

Calgary Mayor Jyoti Gondek mentioned that while there is no finalized system for allocating leases for the affordable units, the city is in the early stages of developing one. "We’ll make sure that we’re very public about how people can apply," she said.

Gondek also addressed concerns regarding potential strain on water and sewer infrastructure due to the new residents. She highlighted the importance of partnerships between the city, federal government, and private companies to ensure Calgary receives adequate tax dollars to support its growth. "Council made the incredibly responsible decision last year during budget to reinvest in maintenance and upkeep, as well as replacement of major infrastructure — particularly when it comes to water," she added.

Dream Office REIT Chief Financial Officer Jay Jiang echoed Gondek’s sentiments, stating, "It’s a powerful example of how public-private collaboration can creatively address housing needs while transforming underused office space into vibrant residential communities downtown."