New Westminster learned of office tower decision after election.

The City of New Westminster learned that the Uptown Property Group was pulling out of the civic centre project nine day’s after last fall’s civic election.

Jim Lowrie, the city’s director of engineering, said the Uptown Property Group notified the city of its decision to withdraw from the project on Nov. 28, 2011.

Bentall Kennedy, on behalf of  the Bentall Kennedy Prime Canadian Property Fund and some other of its pension fund clients, has purchased Bentall 5 for approximately $400 Million, representing almost $700 per sq ft, and a cap rate below 5%. The Vendor in the transaction, the German bank Deka Immobilien GmbH, had purchased the tower just three years ago for $297 Million.

Paul Zemla, Chief Investment Officer for Bentall Kennedy’s Canadian operations told PR newswire: “Following direct discussions with Deka, we were very pleased to pursue this “AAA” office asset. Our knowledge and comfort with Bentall V, which we developed and have managed since its inception, combined with the very attractive long term prospects for the Vancouver office market made this a unique opportunity for our clients”.

The tower, completed in 2002 and expanded in 2007, contains approximately 580,000 sq ft of AAA office and retail space.

This deal represents a new benchmark for valuations of AAA office buildings in Vancouver.

The 5th Floor at Jameson House, 838 West Hastings Street has been sold for $4,100,000, representing $700 per sq ft. The office floors have been listed for sale for several months. The purchaser is a user that will occupy the space.

2303 – 2305 West 41st Avenue in Kerrisdale has sold. The two-storey retail and office building sold for $7,400,000. With 10,600 sq ft of rentable area, the price per SF was $698.

A local private investor has acquired 122-130 West Hastings Street in Downtown Vancouver for $11,500,000, or $240 per sq ft.

The building is a 48,000 sq ft, 3-storey heritage building containing office space.