The 10 Most Expensive Sales in 2017

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.


 

Source:

The Network

Disclaimer:

The information and data contained herein has been obtained from sources deemed reliable but is not warranted to be correct or accurate.

 

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