A private Seattle-based real estate investment company has purchased the heritage Hotel Georgia and neighbouring development site on Howe Street for $65 million from Allied Holdings Ltd. of Vancouver.

Goodman Real Estate Inc. of Seattle, a specialist in heritage renovations, says it will bring a new design for a possible

50-storey mixed-use hotel and residential development to one of the downtown's most prestigious property corners.

Steve Schnieder, spokesman for Goodman said in a phone interview from Seattle that the company already has property investments in Vancouver and says, "We really liked the location and, although it is a challenging site because of its tight confines, we intend to do it right and create a landmark for the city. It's an important corner and we want to do it right."

Schneider said the highrise will be completely redesigned and "we are not certain at this stage what will happen with the hotel, but we will probably complete its renovation."

He said the company would like to get into the ground by the end of next year with the object of getting it completed in time for the 2010 Winter Olympics.

The property already has approved zoning for a 375,000-square-foot tower.

Jim Mouzourakis of NAI Goddard & Smith, who handled the sale, said there was a great deal of interest from many parties and, although a complex project, it was perfect for Goodman.

Bob Rennie of Rennie Marketing said it is an excellent location and comes with the highest density allocation for the downtown.

"But the developer is going to have to be extremely creative to build on such a restrictive site."

Bing Thom, a well-known Vancouver architect, had designed a spectacular crystal tower for a parking lot adjoining the hotel for Allied.

© The Vancouver Province 2005