Towering Ambition
More than three decades ago, the Regency Tower was considered to be very modern in design, but weather and time have taken their toll on the downtown high-rise. "Its going to need a lot of work and TLC to bring it into the 21st century," says Dominick Veliko-Shapko, president of Vista Group Inc. "But in the end, it will all be worth it." He recently closed a deal to purchase the 23 story building at the West end of 6th Avenue S.W. He plans to do a "major facelift" on the 35-year-old rental building before returning its 151 one-and-two bedroom units - in what will be called "Vista Towers" - to the severely undersupplied downtown rental market.
"We haven't even started any part of marketing campaign and we are getting 20 to 30 calls a day, some people wanting to rent a unit unseen", says the Vista President. "There is a huge need for upscale rental downtown and we are trying to respond to it". Month to month rent currently ranges from $650-$850 pre month, but as new leases are signed they will likely run from $850 to $1,100. Besides the residential aspects, there will also be 5,000 sq. foot of retail and office space in the tower. The majority of current tenants in the building are international students attending several educational facilities in the downtown" says Resident Manager Dave Elliot. "I think that'll all change and we'll see more professional people who work downtown living here".
"As many as 25 units will also be made available for corporate use," says Veliko-Shapko. Still another source of rental income will come from the parkade. "We have 151 stalls available and since many of our tenants have no need for them, they will also be rented out," he says. This is Vista's first foray into the high-rise rental sector of the housing market. For the past 5 years, it has made its reputation in the condo conversion industry, purchasing and renovating more than 350 former rental units in the several inner city communities. "Because of the amount of work required to refurbish this building, it will clearly be our biggest and most challenging project to date" says Veliko-Shapko.
The whole refurbishing process will begin with the from façade where the weather beaten brick and concrete will be torn down and replaced. The existing g retail space will be redesigned and reopened to house businesses more directly related to tenant needs, and all common areas will be upgraded. The building will also gave sauna and workout areas. Also planned, is a rooftop garden with gazebo and BBQ pits, trees and shrubs. Work on individual suites will begin as current leases expire. The suite renovations will include fresh paint, new carpeting, and modernized kitchens and bathrooms. "Getting this building into shape is going to be a long process" says Veliko0Shapko. "A lot of the work we do will be cosmetic because the mechanical systems and foundations are in excellent condition. But, overall this building will need a lot of work."
While Vista Group will maintain a high profile in the conversion sector, it will gradually become more involved in the rental market. The company currently has 100 condo conversion units and another 50 rental units being renovated - and Veliko-Shapko is on the lookout for other projects. "I bug real estate agents everyday looking for opportunities to buy properties," he says. "This tower is the offshoot of one of those phone calls." Besides its Calgary properties, Vista also has an extensive rental portfolio in Monterrey California. "But Calgary has an amazing number of real estate opportunities for investors because its still considered to be undervalued in comparison to other large markets in North America," says Veliko-Shapko. "Calgary has a huge potential for growth because compared to California, everything being sold here is considered inexpensive"
