A long-vacant office building in downtown Calgary has been transformed into The Loft, a new rental project featuring 56 housing units. City officials and developers celebrated the launch of this initiative on 4th Avenue S.W. The conversion repurposed over 55,000 square feet of former office space into studio, one-bedroom, and two-bedroom apartments, with sizes ranging from 376 to more than 850 square feet.

The Loft is the fourth completed project under the City of Calgary’s Downtown Development Incentive Program, which was established in 2021. This program aims to revitalize a downtown area facing high vacancy rates and declining property values. City officials believe the program is beginning to positively impact the downtown landscape.

Thom Mahler, the city’s director of downtown strategy, stated, "We’re expecting that this will really help to activate this fairly high-profile corner. This building has been vacant for quite a few years, and so to get this building online... It’s really starting to change the character of this neighborhood."

The former KJM building was redeveloped by Institutional Mortgage Capital and P3 Properties, with support from $4.1 million in city incentive funds. The developers preserved the building's structure while completely redesigning the interior, which minimized environmental impact and expedited the renovation process. Additionally, street-level space has been allocated for a restaurant or café to enhance the area’s vibrancy.

The Downtown Development Incentive Program aims to eliminate six million square feet of surplus office space. So far, 21 projects have been approved, covering 2.68 million square feet and expected to deliver 2,628 residential units, along with 226 hotel rooms and a hostel. The city reports that every dollar of public funding has generated more than four dollars in private investment.

Mahler explained, "Our goal was to remove six million square feet of office, and in doing so, we would increase the value of the remaining office space... It just so happened that the housing shortage coincided. So, we have this dual benefit of reducing office and increasing residential, all within existing buildings."

Chris Hollinger, vice president of operations with Zen Residential, which manages The Loft, noted that new residents are already moving in and utilizing the amenities. "It has a state-of-the-art fitness center, which is already being utilized by a few people living here," he said. "It is the one main amenity, along with two brand-new elevators that will take you throughout the property."

Hollinger mentioned that leasing has attracted significant interest from younger tenants, particularly those coming from the university and interprovincial areas. He added, "(There’s) a lot of people coming from the university, a lot of interprovincial interest in the property, and it’s ready to go at any time."

Mahler also pointed out that these conversions can be more competitively priced than newly built rentals while still providing modern living spaces in desirable locations. "They tend to be more affordable than a new purpose-built rental," he said. "What people are getting is a brand-new unit in very well-located buildings close to all kinds of amenities and services. So, the price is actually very attractive."

Looking ahead, at least three more office-to-residential conversions are expected to be completed by the end of 2025. Officials are optimistic that this trend will continue to reshape downtown Calgary, making it a more livable area. The Loft joins a series of other residential redevelopments and significant public investments in Calgary’s west end, including the revitalization of 8th Street, upgrades at Eau Claire Plaza, and the University of Calgary’s office conversion project.