Uptown landmark, Brunswick Square, for sale

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A landmark in uptown Saint John is up for grabs on the real estate market. 

In a real estate flyer distributed by TD Securities Inc. and CBRE Limited, Brunswick Square, located at 39 King St., is lauded as “an opportunity to acquire a signature commercial centre in Saint John’s uptown core.” While the flyer doesn’t feature an asking price it does state Brunswick Square offers 515,779 square feet of office and retail space, the 250-room Delta hotel, and the nine-storey parking garage. 

“Additionally, the property provides an optimal location at the centre of the Inside Connection, Atlantic Canada’s longest indoor, climate-controlled pedway system, connecting to Market Square, the Saint John Trade and Convention Centre, Canada Games Aquatic Centre, and the Saint John City Market,” the flyer reads. “The core location is critical in attracting and retaining corporate tenants in the market. Key tenants include Service New Brunswick, Aliant Telecom, Cox & Palmer, McInness Cooper, Scotiabank, Grant Thornton, and Lawton’s Drugstore.” 

Brunswick Square, the flyer also notes, currently has a 54 per cent occupancy rate, broken down to 55 per cent offices and 52 per cent retail. 

The uptown facility is currently owned by Slate Office REIT, which told Brunswick News late last year it was “committed” to Brunswick Square. 

Asked for comment on the current listing, Karolina Kmiecik of Slate Asset Management told Brunswick News via e-mail there’s “nothing to share right now” and offered no further details. 

Regardless of the lack of information, Saint John Coun. David Hickey is happy to hear the uptown site is on the market. 

“The challenge with indoor retail has been significant, whether it’s at Brunswick Square or Market Square. I think we’re being put in a position where we need to rethink some of these large spaces we have in the heart of our city,” he said. “There’s no question Brunswick Square, in the state it’s in, is having an impact on our uptown. 

“When I hear Slate wants to sell the property? I’m excited because I think there’s an opportunity for new vision. I think there’s an opportunity for someone to come in and do something more significant with the space to try and make something happen because we need it there.” 

Whether that vision means sticking to the current use of Brunswick News with a mix of retail, office space and restaurants or something different, including residential, doesn’t matter to Hickey who said he simply wants to see the available space used to its potential. He said there’s a necessity for a permanent and long-term use for the property and, hopefully, a change of ownership may bring that to Brunswick Square. 

“I hope when it does sell there’s some new vision, some new excitement brought into it and, I think, that’s what most people are looking for because it has been such a sore point for the community, particularly in the uptown,” he said. 

In its third quarter report for 2023 Slate Office REIT hinted at its new “Portfolio Realignment Plan,” announcing it plans to unload a number of “non-core” Canadian assets, which it said at the time will come out to about 40 per cent of its total gross leasable area, in a process that will last until 2025. 

“We’re operating in a challenging macroeconomic environment,” said interim CEO Brady Welch during a November conference call that went over the third quarter results, noting the sale revenue would be used for debt repayment and “general liquidity of the REIT’s business operations.” 

“Interest rates remain elevated, we’re dealing with tighter credit conditions. And different regions and subsectors of office real estate are recovering at varying rates from the impacts of the lockdown,” Welch said. 

According to the report, Slate owns 54 buildings in Canada, the United States and Ireland with a total asset value of $1.8 billion. Its vacancy rate across all assets was 21.4 per cent as of September 2023.At the time, Slate had identified nine properties to sell, though they weren’t named.“ 

The REIT intends to retain as long-term holdings a continuing portfolio of assets that are similar in terms of their quality, occupancy, tenant profile, and cash flow and are located in markets with strong economic drivers and stable office demand,” Welch said in a letter to “fellow unitholders” that topped the report. 

There was no indication at that time Slate was considering Brunswick Square for the chopping block. 

“Slate remains committed to keeping Brunswick Square a vibrant place to work, shop and stay,” a statement Slate Office REIT provided to Brunswick News said. 

“We have an active pipeline of leasing opportunities for the spaces in Brunswick Square, which we are evaluating and discussing with prospective tenants, and we remain fully engaged in working with representatives from the city, Envision Saint John, as well as our partners in the private sector to bring new entrants into the Saint John market and ensure that existing businesses in Saint John are adequately supported.” 

– With files from Brunswick News 

More to come…