2021 was a bounce back year for land transactions in Metro Vancouver. Following two years of declining transaction value, a renewed interest in development across all asset classes fueled a significant number of sales throughout the region.
One of the emerging differences between the current activity and the previous hot market of 2016-2018 is the shift in focus toward suburban markets, and to asset classes including rental residential and arguably Metro Vancouver’s hottest asset class: industrial.
The days of speculative trades for Downtown luxury condo sites are largely gone for now; the pre-sales market for luxury has only recently started to thaw. Otherwise, the focus for many of the large local residential developers has been suburban markets and purpose built rental.
It is clear that both private and institutional investors continue to be bullish on the long-term fundamentals in Vancouver, and the expectation is that 2022 will be another active year in the market.
Here’s a look at each of the 10 largest land deals of 2021:
1. 5900 No. 2 Road & 6191, 6311 & 6751 Westminster Highway, Richmond
- Price: $300+ Million
- Site Area: 27 acres
- Vendor: Quadreal
- Purchaser: Keltic Development
The goods: For the second year in a row, the largest land deal in Metro Vancouver is in Richmond, though the transaction is much larger than in 2020. A press release from Keltic describes this deal: “Currently, the property is occupied by light industrial / commercial tenants. The company plans to create a vibrant multi-use destination including residential, commercial and industrial spaces that will add richness and vitality to the city. Twenty-three per cent of the land, or 6.4 acres, will be developed into green space and contributed back to the city for community use.”
The off-market sale was brokered by Goran Bucan.
2. 7000 Lougheed Highway, Burnaby
- Price: $151 Million
- Site Area: 14 acres
- Vendor: Pension Fund
- Purchaser: Create Properties
The goods: I was honoured to have brokered this landmark sale with Simon Lim in the Bainbridge area of Burnaby. Create Properties is currently working with the City of Burnaby on a large-scale multi-phase development as part of the Bainbridge Urban Village Plan.
3. 1155 East 6th Avenue, Vancouver
- Price: $118 Million
- Site Area: 2.1 Acres
- Vendor: Shaw
- Purchaser: Low Tide Properties
The goods: This transit oriented development site is currently occupied by Shaw, but allows for potential rezoning and redevelopment under the False Creek Flats Plan, which could potentially allow up to 5.0 FSR of commercial and industrial space.
4. 13301 104th Avenue, Surrey
- Price: $99 Million
- Site Area: 6.4 acres
- Vendor: Private Investor
- Purchaser: Private Investor
The goods: This sale involved a 6.38-acre future multi-high-rise development site in Surrey City Centre Improved with 11 rental apartment buildings totaling 156 units. It was brokered by Dean Thomas of HQ Commercial. The asking price was $98 Million.
5. 2300 Madison Avenue, Burnaby
- Price: $88 Million
- Site Area: 6.5 acres
- Vendor: BC Hydro
- Purchaser: Polygon Homes
The goods: Polygon acquired this BC Hydro site in November 2021. The site comprises two lots, 2300 Madison Avenue, which is currently occupied with an older industrial warehouse building; and a BC Hydro Right-of-Way. The site is located within the Brentwood Town Centre Development Plan, and is designated for medium to high-density multiple family residential development. A preliminary application calls for three towers and 975 units including condos and rentals.
6. 622-688 SW Marine Drive, Vancouver
- Price: $68 Million
- Site Area: 1.5 Acres
- Vendor: Private Investor
- Purchaser: Chard Development
The goods: This 66,474 SF development site (the “Denny’s site”) was brokered by Simon Lim, James Lang and Jessica Hathaway. It is located one block from Marine Drive Skytrain Station and a current rezoning application by Chard contemplates two towers with 573 rental units.
7. 2111 Main Street, Vancouver
- Price: $60 Million
- Site Area: 35,000 SF
- Vendor: Private Investor
- Purchaser: Nicola Wealth Real Estate
The goods: This site on the West side of Main Street known as the City Centre Motel, has long been a targe of many local buyers and was sold to Nicola in November. There is no word yet on redevelopment plans of the motor hotel, but the plan in the short-term is to rent the units to artists.
8. 5 West 4th Avenue & 4-16 West 3rd Avenue, Vancouver
- Price: $57 Million
- Site Area: 36,234 SF
- Vendor: Alsco Canada
- Purchaser: PCI Developments & HOOPP
The goods: This sale involved an I-1 zoned site comprising two older industrial buildings in the burgeoning Mount Pleasant Light industrial/office district. No word yet on redevelopment plans. The deal was brokered by Blair Quinn of CBRE.
9. 2450 United Boulevard, Coquitlam
- Price: $45 Million
- Site Area: 9.5 acres
- Vendor: Coca Cola Canada
- Purchaser: Beedie
The goods: This acquisition by Beedie was one of the larger industrial land transactions in 2021. The site is currently improved with a vending machine distribution centre. There is no word yet on future redevelopment plans.
10. 1290 Hornby Street, Vancouver
- Price: $45 Million
- Site Area: 15,000 SF
- Vendor: Private Local Investor
- Purchaser: Wall Financial
The goods: Another sale brokered by Simon Lim, James Lang and Jessica Hathaway, 1290 Hornby Street is a high-density residential tower site located on the corner of Hornby and Drake Streets between Vancouver’s Beach District, Yaletown and the West End. The site has already started the rezoning process and has received support from the City of Vancouver. The proposed development is a 35-storey residential high-rise building to comprise of condominiums and cultural amenity space – no social housing required.
Some notes from the above list:
- 5 of the 10 largest land deals in Metro Vancouver took place in the City of Vancouver
- 4 of 10 were sold by market bid process (the other 6 were ‘off-market’)
- All 10 were bought by well-established ‘local’ development groups, with previously active offshore buyers absent from these large deals.
Have a question or a comment on any of the transactions above? Please feel free to contact me.