About the building

Located in the Golden Triangle of Washington’s downtown core near George Washington University and Washington Circle, 2020 K Street is an 11-story office and retail building originally built in 1974 and renovated in 2004. It has over 400,000 rentable square feet, with an additional area of nearly 11,000 square feet given over to various amenities, including a conference center/tenant lounge area, a fitness center, bike room and rooftop terrace.

Investment rationale

Washington’s downtown core is the fourth largest central business district in the United States, and 2020 K Street’s prime location in the west end of downtown is conveniently located less than four blocks from the Farragut North, Farragut West, and Foggy Bottom Metro stations, which provide access to four of Washington’s Metro lines (Blue, Orange, Red and Silver).

Like many downtowns in recent years, Washington’s Golden Triangle has seen a resurgence in the number of people living in the area as well as working there. This means that it not only benefits from having prime office space in a desirable location, but that its restaurant and retail outlets benefit from the daily working population as well as the increasing resident population.

2020 K Street is owned by one of LaSalle’s custom accounts clients.

Improvement works

In an effort to strengthen the building’s sustainability credentials and lower operating costs, LaSalle’s asset management team undertook a series of improvement works, which included:

• Implementing a comprehensive recycling program including e-waste disposal by a certified vendor
• Installing variable frequency drives on relief fans, cooling-tower fan and condenser water pumps
• Replacing chiller plant controls
• Reducing actual HVAC hours with tenants to lower energy consumption
• Installing wireless lighting control system throughout the building and in the parking garage
• Retrofitting light fixtures with energy-efficient light bulbs
• Installing efficient water closets in the restrooms

As a result of the improvement works undertaken, over 80% of the building’s total solid waste being recycled. Energy consumption has also been substantially reduced – by over 500,000 kWh per year – which has meant annual utility savings of over $150,000.

Recognition

2020 K Street achieved LEED for Existing Buildings Gold certification in 2013; and its ENERGY STAR score increased from 67 to 83. The building is also WELL Health + Safety rated.

About the building

Guildford Town Centre is highly productive, dominant super-regional mall of nearly 1.2 million square feet located in Surrey, British Columbia. In 2013, the mall underwent a major renovation and expansion with $280 million of capital investments which boosted mall traffic to 14.6 million visitors in 2019. The renovation included a Walmart Supercenter expansion, new parking structure and renovated 1,000 seat foot court. The mall is home to over 120 retailers, including many of Canada’s top brands. 

Investment rationale

The city of Surrey is the Greater Vancouver Area’s fastest growing regional trade area, with population growth of 300,000 forecast over the next 30 years. Surrey is set to surpass Vancouver as the most populous city in British Columbia by 2041. 

Guildford Town Centre has been ranked as one of the 20 most productive shopping centres in Canada with commercial retail unit (CRU) sales of C$906 per square foot.  

The LaSalle Canada Property Fund’s management team believes that the strong demographic trends in Surrey, combined with the desirability of the Guildford Town Centre for retailers means that it will be a strong core asset for the fund and provide reliable rental income for the long term. 

Recognition 

Following its 2013 renovation, the Guildford Town Centre was awarded LEED Gold status in 2015. 

About the property

Mission Junction Shopping Centre is a dominant, grocery-anchored shopping center in Mission, British Columbia, the second-fastest growing district in the province and approximately 75 kilometers east of downtown Vancouver.

Built in various stages between 1998 and 2006, the total footprint is just over 272,000 square feet.

Investment rationale and value creation

At the time of acquisition, the property had an expiring movie theatre lease and a 60,000 square feet food store looking to downsize, as well as several as-of-right pad development possibilities.

The LaSalle Canadian value-add investments team built and leased a new 23,000 square foot pad for a large retail tenant and 5,000 square foot food and beverage-anchored drive-thru. In addition, the team completed new, renewal and expansion leasing totalling in excess of 250,000 square feet including both the movie theater and grocery store on 10-year terms.

What we achieved

When the Mission Junction Shopping Centre was sold in Q4 2021 it was 96% leased with a weighted average lease term of almost five years. The agreed sale price represented a strong profit for our investors.

About the building

Rideau & Chapel is a mixed-use, 25-story retail and residential building on the corner of its namesake streets in downtown Ottawa. On completion, it will feature over 600 apartments for rent and 9,000 square feet of retail space. It is located on the eastern edge of the central business district near the Rideau Centre, the University of Ottawa, the Chateau Laurier, the Rideau Canal and Parliament Hill.

Investment rationale

As a mixed-use residential and retail development, Rideau & Chapel will have diversified income streams from the start. The building is located in a prime Ottawa position near local landmarks and within close proximity to the brand-new Rideau LRT Station along the Confederation Line. Construction is progressing on schedule with possession estimated for late 2022.

The LaSalle Canada Property Fund has purchased a 47.5% stake in Rideau & Chapel.

About the building

The San Jose Marketcenter, located at 543 Coleman Ave in San Jose, California sits in an infill location in highly sought-after retail trade area. The property is located less than one mile from Downtown San Jose, San Jose International Airport, and is generally surrounded by and has immediate access to regional freeways. Tenants include a wide range of popular eateries, retail stores, banks, hair salons and a veterinarian’s office.

Investment rationale

At the time of acquisition, the San Jose retail market has consistently achieved high occupancy rates and the city’s strict zoning laws and onerous development permitting process have helped to slow the pace of new construction. This trend has remained unchanged, and tenant occupancy remains at high levels. In addition, the San Jose Marketcenter’s prime location continues to generate high levels of traffic, making it a desirable place for businesses to locate. The LaSalle Property Fund’s management team believes that the property will continue to provide long term, reliable income streams for the fund.