Allied Properties, along with Westbank, is set to acquire and redevelop an early 20th century building in downtown Toronto for $47 million.

Built for light industrial purposes in the early 1900s, the Class I property, including an adjacent laneway, will transform into a mixed-use complex, composed of retail, rental apartments and five floors of office space.

The joint venture plans to preserve most of the existing 61,911-square-foot structure situated on the southeast corner of Duncan Street and Adelaide Street West, while integrating it with the new construction.

Upon completion, Allied will manage the offices, while Westbank will oversee the residential areas once it fulfills its role as development manager.

Allied has previously teamed with Westbank in the TELUS Sky project—a 58-storey mixed-use high-rise in downtown Calgary.

“We’re delighted to be embarking on a second joint-venture with Westbank, this time right in the heart of our downtown Toronto target market,” said Michael Emory, president and chief executive officer of Allied.

The Duncan Street redevelopment will be neighbouring with a few other Westbank properties, including the Shangri-La Hotel, Soho House and Momofuku.

“We think the site is really interesting from a number of perspectives, but what we are most excited about is contributing to the area’s vibrant densification in an architecturally distinct and beautiful manner,” added Ian Gillespie, owner and chief executive officer of Westbank.

The acquisition is expected to close on February 10, 2015.