Simon Lim recently facilitated the off-market sale of two adjacent properties in Downtown Vancouver’s West End to a sophisticated purchaser for $83.5 million. The properties have a combined site area of 43,282 square feet and are currently improved with two mid-rise office complexes and one 20-storey apartment building built circa 1970. This attractive development opportunity encompasses an entire downtown city block, a rare occurrence in today’s market. Simon represented the Vendor in the transaction and quietly marketed the property to interested groups via personal presentations.
Although the present buildings provide income on approximately 54,000 square feet of office space and 129 residential units totaling 37,000 square feet, the current improvements are aging and would require continued capital expenditures to be competitive in the market. With the City of Vancouver’s adoption of the new West End Community Plan in November 2013, new developments in this area are designated for a maximum height of 500 feet.
The primary challenge in the sale was finding a sophisticated purchaser that understood the latent land value and development potential. Simon and his team calculated the property’s future earnings and compared them to potential development profits using residual value models that took the city’s long-term planning perspectives into account. After working with several potential groups, Colliers found a well-financed buyer with a deep understanding of the Vancouver market to step up the plate and complete the transaction. This off-market sale is a great example of the service excellence we provide to our clients to maximize the value of their real estate portfolios.