Edmonton company sells Kelowna Business Centre for $19.5 million

Photo: Contributed

An Edmonton-based real estate investment trust has sold a Kelowna business building for nearly $20 million.

Melcor REIT sold Kelowna Business Centre for $19.5 million, excluding closing costs, to an undisclosed buyer. The most famous tenant in the 71,600 square-foot building, a three-storey structure located at 1634 Harvey Ave., is Wentworth Music.

“This property sale enables the REIT to pay down our line of credit to free up capital for other opportunities while also achieving a good return on investment for unit holders,” Melcor chief executive officer Andrew Melton said in a press release

“We bought Kelowna Business Centre in conjunction with the REIT’s initial public offering in May 2013 and sold it for a premium to our purchase price. The property was cash flow positive while held by the REIT.”

The sale resulted in net cash proceeds of $9 million after mortgage repayment.