Two new purpose-built rental housing towers are set to be built in the East Village, adding more than 150 new homes to the neighbourhood by 2027.

The construction of the towers, which is set to begin in 2025, was announced by the Calgary Municipal Land Corporation and Bankside Properties on Nov. 25.

Each tower will be a six-storey wood framed construction, containing approximately 80 units per tower with one-bedroom, one-bedroom-plus-den, and two-bedroom configurations.

Although the purpose-built units are set to be rented at market value, Cole Richardson, Managing Principal at Bankside Properties, said that they are targeting an underserved non-premium market segment.

“We’re trying to target a certain band that’s still affordable to a majority of the population,” he said.

The development will take place on blocks E and Z, located on the east side of the Central Library next to the St. Louis Hotel building on the north, and the historic Hiller Block on the south.

CMLC previously owned both parcels.

“This is a really unique street, 8 Avenue in Calgary, and our ask of the developer partner was to make sure that we carry on that feeling along the street, right into the central library,” said Kate Thompson, CEO of CMLC.

“CMLC has been always looking at great partnerships, and to deliver on the vision that we created in 2007 and to meet and exceed the expectations of the master plan in this community. And that’s no different for these two properties.”

She said that there was added pressure to find the right developer for the two parcels, given their location next to historic buildings and next to the Central Library.

“We understand that, and we also know how important it is to bring residents into East Village and keep the momentum with the delivery of development opportunities. So, having this partner at the table is a really great fit for us, and they understand the expectations of design and delivery in terms of an urban context,” Thompson said.

Purpose-built rentals are part of a large growth in the number of East Village homes

Richardson said that Bankside was conscious of the fantastic architecture in and around the East Village, and said that the design philosophy for the residential towers would be to compliment current buildings.

"We'll allow the new Central Library to be the star of the show like it is today," he said.

Among the reasons for the development of the parcels was the changing market conditions that have led to improvements in getting financing for projects, Richardson said.

"It's no secret. It's been a challenging market for quite a while in Calgary, things have improved a lot over the last two to three years, and it goes back to the fundamentals... people want to live here. The secret's out. So, it's easy to see in the data, and you can show your investors 'if we build it, people will come.' So it wasn't a hard story to sell."

One of the unique aspects of the towers is the capacity to turn the first-floor rental units into commercial space if there is demand for that in the future.

"We always like to have a bit of flexibility in our assets, and we're planning to retain this asset for a very long time. So hopefully down the road, we might see a restaurant or two at-grade," Richardson said.

"We want to own this thing for decades to come, and we're really excited to kind of be part of what's going to happen, not only on our street and the surrounding streets, but in the [Culture and Entertainment District] with the new arena, with the BMO [Centre] expansion, with everything that's going on. It's a fantastic place to be."

Housing construction is set to be on the uptick in 2025 said Thompson, with an estimated 400 housing units starting construction in the new year.

"I think it's really important to know that investment is important to make this experiment work, and we're seeing it. We're seeing renewed investment in the area, and people wanting to build and partner, not only with CMLC, but the City."

Among the other projects that are set to begin, or are under work in the East Village include Alston Properties EV606, with its 44 rental units and commercial space and Minto Properties' 100-unit build, both on the Riverwalk, and ONE Properties with two mixed-use towers along Q Block.

Trico Homes has also submitted a development permit for a 255-unit rental housing building with three commercial units and a daycare along 4 Avenue SE and Macleod Trail SE.

Triovest is set to develop its privately owned parcel directly north of Studio Bell with two mixed-use towers with approximately 500 residential units, built over two phases.

Thompson said that as other projects come to completion, and certainty is provided by the province on new projects like a union station for rail near the East Village, there will be more interest from developers.

"I've said this before, but development seeks certainty, and so the more certain they are that something's going to come, the more excited they get about the opportunity and for great development and great communities to thrive," Thompson said.

"Connectivity is at the top of the list. That's connectivity for pedestrians, cars, cyclists, everyone in and out of a district, make it easy and make it enjoyable, and then the anchor projects in and around them become more successful. So, CMLC is very supportive of all connections, whether it be rail or pedestrian river or road, the more ways that people can access our neighbourhood, the more likely we are to be a vibrant success."