Toronto’s Crestpoint Real Estate Investment has purchased a Vancouver Class A office building for approximately $225 million, or more than $1,000 per square foot.
The office and retail property at 800 Georgia Street, previously owned by Oxford Properties and CPP Investment Board, is a 19-story building with five ground level retail units. Canadian retailer Lululemon anchors the retail units and the federal government leases the office space.
Crestpoint also recently acquired a 53% stake in a similar office property in Montreal; this building sold for $300 per square foot, or less than a third of what they paid for the Vancouver building.
Kevin Leon, president of Crestpoint, said the price discrepancy between the two markets relates to liquidity.
“In downtown Vancouver, there is a limited supply of land, and it's very attractive to foreign capital,” he said. “There will always be an exit price if the market goes south.
“Right now the market in Montreal is great, but sometimes you can't sell a building.”