A Toronto-based real estate investment firm has acquired a Vancouver Class A office building for approximately $225 million – or more than $1,000 per square foot.
Crestpoint Real Estate Investment purchased the office and retail property at 800 Burrard Street. The firm also acquired a 53 per cent stake in a similar Montreal office property, at a value of $300 per square foot.
“The difference is liquidity. In downtown Vancouver, there is a limited supply of land, and it’s very attractive to foreign capital. There will always be an exit price if the market goes south. Right now the market in Montreal is great, but sometimes you can’t sell a building,” said Kevin Leon, Crestpoint president, commenting on the price discrepancy between the two markets.
The Vancouver property is 19 storeys, with five ground-level retail units. Canadian retailer Lululemon Athletics anchors the retail units, while the office space is fully leased by the federal government.
The site’s capitalization rate is placed at 4.25 per cent, mostly on par with the projected cap rate for office product in Vancouver – between 3.75 to 4 per cent.
“Some people think we got a pretty good deal,” said Leon. “This is probably one of the most prime retail corners in downtown Vancouver.”
From | Cushman & Wakefield, Vancouver. Cushman agent Harpreet Singh sold the following:
DEAL | Six-lot land assembly totalling 1.65 acres of development land. 138A Street, Surrey. Price: $11.8 million.
From | HomeLife Glenayre Realty, Abbotsford. HomeLife agent Joe Varing brokered:
DEAL | Two-acre single-family site with potential to be redeveloped into 16 separate lots. 197 Street, Langley. Price: $5.2 million.
From | William Wright Commercial, Vancouver. William Wright agent Cory Wright sold:
DEAL | A four-unit, 12,840-square- foot commercial building zoned for retail use. McCallum Road, Abbotsford. Price: $1.76 million.
From | Re/Max Excellence, Edmonton. Re/Max agents Dale James and Humaira Naikyar sold the following:
DEAL | 11,000-square-foot office building situated on a 13,150-square-foot development lot. 122 Street, Edmonton. Price: $1.75 million.
From | Macdonald Commercial Real Estate Ltd., Vancouver. Macdonald agents Stuart Wright, Nick Goulet and Eric Poon report:
DEAL | 18,154-square-foot development site in Mount Pleasant, with 8,500-square-foot industrial building. 3rd Avenue, Vancouver. Price: $18.52 million.
From | JLL Canada, Edmonton. JLL agent Samuel Dean brokered the following sale:
DEAL | 20-unit apartment building, sold at $87,500 per suite. Church Road, Spruce Grove. Price: $1.75 million.
DEAL | Collection of several land parcels zoned for both commercial and residential use. Golf Course Road, Stony Plain. Price: $4.5 million.
From | Colliers International, Edmonton. Colliers agent Brandon Imada sold:
DEAL | 15-unit apartment building totalling 15,000 square feet. 111 Street, Edmonton. Price: $1.62 million.
DEAL | 12-unit apartment building sold for approximately $122,500 per suite. 156 Street, Edmonton. Price: $1.47 million.
From | Colliers agents Amit Grover and Jandip Deal sold the following:
DEAL | 38-unit, recently renovated rental apartment building situated on a 1.52-acre lot. Sherridon Drive, Edmonton. Price: $4.2 million.