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More than four years after its owners said they would wait until “the dust settles a bit” to announce development plans for the former home of the Patricia Hotel, the downtown lots that housed the popular hotel and bar are up for sale for more than $6.2 million.
The hotel, which was for years favoured by thirsty university students, was torn down in 2013. The vacant lot at the corner of Second Avenue North and 25th Street East has been used for parking ever since — one of dozens of empty lots adorning the city’s downtown core.
A request for comment from David Bakonyi, who represents the Vancouver-based investors who purchased the land in 2013, was not accommodated.
Keith Webb, the Colliers International agent managing the sale, said he wasn’t able to comment on the reason for the sale, but described it as a “perfectly situated development site” with “great exposure and good traffic counts.”
“So the fellows ... put it to the market and if they can get what they’re asking for, then they would sell it,” Webb said. “If not, then they’ll hold it, and continue to enjoy the income that’s generated from the parking lot.”
A good location alone may not be enough.
ICR Commercial Real Estate partner Josh Walchuk said developers consider numerous factors if they’re preparing to build, including downtown commercial vacancy rates — which were hovering around 16 per cent in April — and demand for residential condos.
He noted developments like Canwest Commercial and Land Corp’s World Trade Center Saskatoon and a three-tower hotel condominium-office development at River Landing are proof Saskatoon can attract large projects.
While developers can opt for a mixed-use building with residential and commercial spaces, it’s likely demand for downtown office space will have to increase and vacancy will need to drop, he said.
“I don’t think you’ll see any other projects come out of the ground besides the two that have been announced,” Walchuk said.
I don’t think you’ll see any other projects come out of the ground besides the two that have been announced.