Edmonton’s commercial real estate market was busy last year with the top 10 sales alone amounting to over $700 million. Similar to the past two years, multi-family properties have represented a large portion of the top 10 most expensive transactions, with office, retail and land sales rounding out the rest of the list.
|Property Class||Address||Sale Price||Sale Date|
|Multi-Family||8508 Jasper Ave||$ 191,000,000||January 12, 2017|
|Commercial||11103 Ellerslie Road SW||$ 103,934,000||January 17, 2017|
|Commercial||222 Baseline Road – Sherwood Park||$ 85,000,000||July 21, 2017|
|Commercial||10454 82 Ave; 10444 81 Ave||$ 65,000,000||August 23, 2017|
|Commercial||9888 Jasper Ave||$ 60,630,000||August 15, 2017|
|Urban Dev/AG||RR 215 & Hwy 15 – Strathcona County||$ 55,000,000||January 18, 2017|
|Multi-Family||10023 115 St||$ 46,850,000||January 10, 2017|
|Multi-Family||1 & 2 Vanderlor Road – St. Albert||$ 42,500,000||January 13, 2017|
|Multi-Family||200/202 Salisbury Way – Sherwood Park||$ 39,222,973||December 12, 2017|
|Commercial||11103 Ellerslie Road SW||$ 38,350,657||August 14, 2017|
We should clarify that the sale at 11103 Ellerslie Road SW was part of a portfolio sale by 7-Eleven. It included 14 properties in Edmonton, 3 in cold lake, 2 in Fort Saskatchewan, 1 in Leduc, 2 in Spruce Grove, 5 in Sherwood Park, 1 in St. Albert, 3 in Calgary and 1 in Red Deer.
Interestingly, the most expensive sale of the year sold at a 4.09% cap rate. Technically it is composed of two towers, with the walk-up component equating to a 4.65% cap rate and the high rise to a 3.85% cap.
The office market had a lot of pressure last year with one seller offloading 4 towers at very low prices. Despite those outliers, some sellers were able to command higher prices. HCI Ventures, for example, sold 9Triple8 Jasper Building (9888 Jasper Avenue) for $341.82 / sq ft, which reflected a 5.61% cap*. Contrast this to HSBC Bank Place which sold for $107 / sq ft in March, 2017. HSBC’s sale price of $35M put it just outside the top 10 list, but it had a significant price drop as it was previously purchased in 2010 for $83M.
In the top 10 list was a portfolio of hotels which sold for $65M. The sale included the Mettera Hotel on Whyte, the Varscona Hotel on Whyte and the Matrix (3 unbranded hotels). The overall cap rate on the 3 hotels was 6.75%.
10:21 am Friday:
2018 started off strongly, but February has already been a tough month for the stock market and commodities. Both the S&P 500 and the DJIA have entered correction territory and oil prices slipped below $60 / barrel.
*Note: We had an error on the cap rate for 9Triple8. It should be 5.61% (not the 6.61% we originally had). We have been informed the cap rate should be closer to 6%, so we will update when we confirm.
The information and data contained herein has been obtained from sources deemed reliable but is not warranted to be correct or accurate.