Bonnis Properties is proposing to redevelop a site that they acquired at the northwest corner of West 4th Avenue and Arbutus Street. The plan calls for a one-storey, 4,010 SF retail building with a roof deck. The 50 x 111′ C-2B zoned site is currently occupied by a Midas service centre.

The proposal is explained by the architect in the application: “The proposed structure has been design for potential relocation of the adjacent Lululemon store to the proposed building.The design including the roof terrace is based on the requirements and specifications of this potential tenant. The design of the building is flexible to allow for one or two commercial units in the future if required. The proposed building is a non-combustible steel construction and the exterior finishes are a combination of exterior architectural concrete panel system and metal cladding.”

The site was acquired through a bidding process in late 2013 and was ultimately sold for $6,000,000, or $1,081 per SF of land.

Here’s a quick look at the largest deals of 2014. While the announcement of the sale of the Jericho Lands was considered to be among the biggest deals of the year, this is not included as this was not a market transaction.

1. Hyatt Regency ($140 MM)

The sale of the Hyatt Regency hotel in Downtown Vancouver to InnVest REIT last month was the largest deal in Vancouver in 2014. The 644-room hotel sold for $140 Million. According to an InnVest press release: “InnVest funded the acquisition of the Hyatt with a new $70 million, 3.8% floating rate mortgage (three-year term plus two one-year options) and cash on hand”.

2. 1500 West Georgia ($120 MM)

Bosa Properties acquisition of 1500 West Georgia from Morguard was one of the most talked about deals in 2014. The 193,000 SF A Class office building sits on a very valuable and partially underutilized 43,320 SF, full-block site at the Southeast corner of West Georgia and Cardero. Speculation abounds as to future redevelopment.

3. Langara Gardens ($102 MM)

Peterson Group quietly sold a 50% interest in their 621-unit, 21 acre apartment property on Cambie Street known as Langara Gardens to Concert Properties in a deal that would peg the value over $200 Million. The site has been undergoing a preliminary planning process with the City of Vancouver since 2013.

4. 3777 Kingsway ($87 MM)

Another 50% sale managed to make Vancouver’s top deals of the year. The 50% sale of a building that many Vancouverites refer to as the ‘Telus Boot’, a 22-storey office tower near Metrotown, was sold by H&R REIT to Crestpoint for $87 Million.

5. 1444 Alberni & 740 Nicola ($84 MM)

Wall Financial’s acquisition of a full-city block in the West End was one of Vancouver’s largest deals with redevelopment potential. At just under an acre and containing existing apartments and office space, the site has redevelopment potential under the City of Vancouver’s new West End Community Plan.

There’s a lot of buzz in the market right now about 2015 assessed values, particularly for residential which seem to be all over the map with respect to increases/decreases from 2014.

For most Vancouver commercial properties over the past decade, market values have been consistently higher than assessment values. There are multiple reasons for this phenomenon, the most obvious of which has been a market that has seen steady capital appreciation rates that continue ahead of the assessors.  Here’s a quick look at all of the office buildings that sold in Metro Vancouver in 2014 for over $2,000,000:

Note that in almost all cases, purchase prices fall in a range of 10-40% above assessed value, and only in rare cases do they fall below assessed values. (If you’re wondering why  411 Dunsmuir Street wasn’t included, it was fully renovated and sat vacant for over a year before being fully leased and sold earlier this year and traded for over 3 times assessed value.

1133 Barclay Street has been sold by Gordon Nelson Properties for $9,225,000 to a local investor. The purchase price represents a cap rate of 4.5% and a price per unit of approx. $300,000. The building was fully renovated including new stainless steel appliances, dishwashers, granite countertops, porcelain tiling and refinished floors. The building has an ideal location, but does not fall within the West End Plan’s potential rezoning area.

The building had been listed for sale for $9,898,000, and was sold by Matt Saunders and Steve Fame of Colliers in approx. 1 month.

While in the works now for over a year, plans for a new office tower just East of Waterfront Station have become public. Cadillac Fairview is planning a 26-storey tower at 555 West Cordova, a site most will be familiar with as the parking lot between The Station building and The Landing, where Steamworks is located. The site is already zoned DD and so only requires a development permit approval process.

An original version of the project had been slightly taller, but was then revised to respect a view cone after an initial review by the Gastown Historic Area Planning Committee.

Details of the project include:

• a 26-storey tower with a total height of 417 feet
• 409,000 SF of commercial space
• a shared open courtyard with Watefront Station
• one level of underground parking accessed off the lane
• off-street parking shared with nearby Cadillac Fairview waterfront office properties

No word yet on pre-leasing activity. This project joins a handful of others at various stages of development, including 320 Granville Street one block West, which achieved rezoning in 2014, but has yet to go under construction.

This project certainly has location and potential views in its favour. Stay tuned for further updates.