Perimeter Development Corporation says it has acquired 305 King Street West in downtown Kitchener for $6.5 million.
The deal was announced by the company on Tuesday.
In a statement, the company says it plans on transforming the aging office tower into a place where "people want to work."
Mike Rossi, the CEO of a local startup known as SweetTooth, says he and his team decided to move in earlier this year, and are looking forward to having more fellow startups in the tower.
"We can tell that the building hasn't been worked on that much in the past few years," said Rossi. "So we're excited there is new management and it should be, with some renovations, attracting more of the startup type companies."
MappedIn, a small tech firm currently housed in the nearby Tannery building, says it will be making the move on January 1st.
Stacey Tozer, the company's marketing director, says the ability to stay in downtown Kitchener was a big factor in the decision.
"Being close to Communitech and having other startups in the building was extremely important, to be able to continue with that collaborative environment we've been accustomed to," said Tozer.
Perimeter Development says about 67,000 square feet of office space is available for lease, and the company has plans to incorporate a restaurant and cafe on the main floor.