To start off the new year, we have compiled a summary of Metro Vancouver’s most valuable commercial real estate assets. The summary is based on a survey of the top 25 commercial properties ranked by asssessed value.

While assessed values can often vary significantly from market values (take Bentall 5 for example, which sold for $400M last year), the survey provides a glimpse into who controls the larger commercial assets in Metro Vancouver and yields some interesting observations:

• Metrotopolis at Metrotown is by far Vancouver’s most valuable commercial property. The nearly 1.8M sq ft shopping centre is assessed at $725M ($406 per sq ft). This value does not include the adjacent office towers, also owned by Caisse de depot, which is Quebec’s largest pension fund manager.

• The top 25 are almost all retail or office, or both. One apartment and hotel property each cracked the top 25.

• Pension funds control the vast majority of these larger core/trophy assets. (76% to be exact)

• A group of 6 pension fund managers (some in partnership) control well over 50% of the top 25.

• While the top 3 are super regional shopping centres, 15 of the top 25 are Downtown office towers.

Where does Vancouver rank next to other cities in terms of commercial property valuations? While Vancouver valuations are among North America’s highest on a price/sq ft and cap rate basis, due to scale we’re not quite in the same league as others for total values… For reference, Scotia Tower in Toronto sold in 2012 for $1.27 Billion. The Bow office tower in Calgary cost $1.4 Billion to construct. Canadian Pension Plan Investment Board acquired a 50% stake in a 2.5M sq ft. Manhattan office tower in 2012 for $576M.

As 2012 wraps up, we’ve summarized the top deals of 2012 by total dollar value. While a number of $100M+ assets traded in 2011, 2012 has been a comparatively quieter year, with only one true core/trophy property sold – that being Bentall 5. The downtown Canada Post property, offered for sale in late 2012, will probably fetch over $100M when it closes sometime in 2013.

1. Bentall 5    Bentall Kennedy, acquired this premier ‘AAA’ class office building in May for a record $400 Million, representing $686 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. The acquisition by Bentall Kennedy re-affirms their confidence in the Downtown Vancouver office market.

2. Plaza 88 Retail    First Capital Realty acquired the retail component of the Plaza at New Westminster in May 2012 for $97,000,000, or $500 per SF.  The property consists of 194,000 square feet of gross leaseable area and a 422 stall paid parking garage.  The project is fully integrated with Skytrain and a bus terminal.  Tenants include Safeway, Landmark Theatres, Shoppers Drug Mart, Dollar Tree, CIBC, RBC, Starbucks and A&W.

3. Lougheed Village   The largest apartment deal done in 2012 was a large concrete highrise complex in Burnaby next to Lougheed Mall. The 548-unit complex sold in April for $90,000,000, or $165,000 per unit. Comprised of two 24-storey towers and two 8-storey lowrises, the sale is one of the largest apartment sales in Vancouver history, behind only that of Beach Towers and Langara Gardens in 2010. The buyer was Mayfair Properties.

4. Pacific Point  Bosa Development acquired this 227-unit strata building located in Downtown Vancouver in June 2012 for $79,000,000. The 20-year old project includes two phases over a common podium and is stratified but has been operated as a rental building since completion. It includes 11 commercial units on the ground floor. The building had been listed for sale by the Vendor, Concert Properties. The price per unit is approximately $350,000.

5. 401 West Georgia    Canada Pension Plan Investment Board acquired a 50% stake in this A Class office building at West Georgia and Homer Street in March 2012 for $63,000,000, or $467 per SF for, representing a 5.1% cap rate.

The building occupied by Edmonds Appliance in Burnaby has been sold, for $2,650,000, or $250 /SF. The 10,687 SF building is located on a 20,000 SF site and had been listed for sale for $2,950,000. The property is zoned C-4. Edmonds Appliance will be relocating.