Calgary's Downtown Development Initiative: 128 New Homes from Office Conversions

Calgary Transforming Spaces: Office to Rental Homes

In recent developments, the City of Calgary has recognized Bluevale Capital for its innovative approach in revamping urban spaces. This significant achievement centers on a $8.3 million funding allocation aimed at converting an office tower into residential units within the heart of Calgary. The initiative underscores the city’s commitment to revitalization efforts in the downtown area, particularly with the objective of eliminating six million square feet of unoccupied office space by 2031.

Project Overview

The project focuses on the building located at 510 5th St SW, a once underused office tower that will soon be home to 128 new rental units. The conversion is a crucial response to Calgary's growing housing demands, especially as urban living becomes increasingly desirable among residents.

This transformation does not just aim to enhance the residential landscape; it prioritizes community needs. The newly converted building will feature a variety of unit sizes—studio, one-bedroom, two-bedroom, and three-bedroom layouts—aiming to accommodate diverse residents. Each unit will come equipped with modern amenities such as in-suite laundry, high ceilings, and updated finishes designed for sustainable living.

Addressing Housing Affordability

In a city where new construction can often lead to inflated prices, Bluevale's approach emphasizes affordability. By repurposing existing structures, the project stands out by targeting underrepresented demographics, including young professionals, seniors, veterans, and families seeking multigenerational living arrangements. This deliberate strategy ensures that housing becomes accessible while maintaining quality design and convenience right at the city's core.

Additionally, the project is set to include features such as dedicated storage for residents, work-from-home spaces that align with today’s hybrid work culture, and secure bike storage to encourage sustainable transportation options. The strategic location provides easy access to public transport, educational institutions, and healthcare facilities, further fostering a connected urban lifestyle.

Collaborative Efforts and Sustainability

The project is a joint effort that engages various renowned architects and engineering firms, including Gensler, Bouthillette Parizeau (BPA), and Entuitive. Construction will be handled by EllisDon, a key player in the real estate sector. To facilitate the financing needed for this progressive development, Peakhill Capital—an established lender within the North American market—will be providing crucial support. With over $15 billion in loans managed, Peakhill is committed to promoting multifamily and affordable housing solutions crucial for urban communities.

Bluevale's Chief Executive, Pavel Abdur-Rahman, noted the importance of such adaptive reuse projects in Canadian urban environments. He emphasized how Calgary's incentive program, which grants priority project status and fosters collaborative permitting, presents a model for cities globally. The initiative not only addresses the immediate need for housing but also demonstrates a commitment to sustainable development and responsible urban planning.

A Trailblazer for Future Conversions

The 510 project is not Bluevale's first initiative in Canada; it marks the company's second office-to-residential conversion. Earlier in August 2025, Bluevale successfully transformed an office space in London, Ontario, into residential units within a year, showcasing its capacity to adapt and innovate.

Over the last three years, Bluevale has contributed significantly to urban housing by creating over 1,100 residential units throughout North America, illustrating how adaptive reuse can play a pivotal role in the real estate landscape. The current conversion project, alongside other recent initiatives under the Downtown Development Incentive Program, aims to repurpose 2.68 million square feet of office space into 2,655 new homes, thereby redefining the urban landscape and contributing to holistic community revitalization in Calgary and beyond.

Conclusion

As the City of Calgary continues to embark on this transformative journey, Bluevale Capital stands as a testament to the effectiveness of adaptive reuse in urban development. By turning vacant offices into vibrant communities, the project not only alleviates housing shortages but also enriches the urban fabric, paving the way for a more sustainable and inclusive future in downtown Calgary.