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Toronto Investment Firm Buys Vancouver Office Building for $225 Million
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(Posted on Oct 31, 2018 at 08:23PM by Michelle Bogle)
Toronto-based Crestpoint Real Estate Investment has acquired a Class A office building for approximately $225 million – more than $1,000 per square foot. The 19-story building with five ground level retail units, located at one of Vancouver’s busiest intersections at the corner of Robson Street and Burrard Street, was previously owned by Oxford Properties and CPP Investment Board. The office building is fully leased to the Canadian government while the retail component is leased to brandâ€name national and international tenants, including Lululemon.Â
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This deal follows after Crestpoint recently acquired a 53 percent stake in a similar office property in Montreal. That building sold for $300 per square foot, or less than a third of what they paid for 800 Georgia Street in Vancouver.
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According to Kevin Leon, President of Crestpoint, the price discrepancy between the two markets relates to liquidity. “In downtown Vancouver, there is a limited supply of land, and it's very attractive to foreign capital,†said Leon in an interview. “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.â€
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For more information or insight into this recent benchmark sale or to discuss office investment opportunities across the Lower Mainland, please contact us at Marcus & Millichap to speak with a commercial real estate advisor.
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