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-Family8508 Jasper Ave $  191,000,000January 12, 2017
Commercial11103 Ellerslie Road SW $  103,934,000January 17, 2017
Commercial222 Baseline Road – Sherwood Park $   85,000,000July 21, 2017
Commercial10454 82 Ave; 10444 81 Ave $   65,000,000August 23, 2017
Commercial9888 Jasper Ave $   60,630,000August 15, 2017
Urban Dev/AGRR 215 & Hwy 15 –  Strathcona County $   55,000,000January 18, 2017
Multi-Family10023 115 St $   46,850,000January 10, 2017
Multi-Family1 & 2 Vanderlor Road – St. Albert $   42,500,000January 13, 2017
Multi-Family200/202 Salisbury Way – Sherwood Park $   39,222,973December 12, 2017
Commercial11103 Ellerslie Road SW $   38,350,657August 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.

 

Our Team

Chad Griffiths

Chad Griffiths

Partner, SIOR, CCIM

Chad is a partner with NAI Commercial Real Estate and focuses on the Greater Edmonton area. Chad entered the industry in 2004 and has completed over 400 commercial transactions with clients ranging from small, local companies to large institutional owners. Chad has been a top 15 producer with NAI Canada-wide since 2013.

Ryan Brown

Ryan Brown

Partner, BCom, SIOR

Ryan is a partner with NAI Commercial Real Estate in Edmonton and is currently ranked nationally as one of NAI's top advisors. Having executed in excess of $100 Million worth of sales transactions and over 2 Million square feet of lease transactions, Ryan has developed a firm understanding of asset evaluation and an aptitude for building design, functionality, and long-term practicality.

Darcie Bouteiller

Darcie Bouteiller

Associate

Darcie is a licensed Commercial Real Estate Agent in the Province of Alberta with a focus on the Edmonton market and its surrounding areas. Darcie accomplishes custom solutions for her clients through her personable nature and results driven attitude. Darcie can help if you are looking to invest in commercial real estate or are looking for representation for a sale or lease transactions.

Recent Posts

5 Years of Data on Edmonton’s Industrial Real Estate Market
Articles Industrial

5 Years of Data on Edmonton’s Industrial Real Estate Market

With support from The Network, we compiled and analyzed sales data for Edmonton's industrial real estate market from 2014 to...
Read More
Oil Prices Have Increased 300% in the Past Two Months
Articles Industrial

Oil Prices Have Increased 300% in the Past Two Months

Canadian oil prices had a rough 2018. Not only did the spread between West Texas Intermediate (WTI) and Western Canadian...
Read More
2019: Edmonton Storm Clouds or Silver Linings?
Articles Industrial

2019: Edmonton Storm Clouds or Silver Linings?

We’re only in the first week of 2019 and we’re already prepared to make our first prediction of the year....
Read More

About Us

EdmontonCommercial.com offers expert analysis and research in a weekly blog along with resources for landlords, tenants, sellers and buyers in the market. Seeking to buy or lease? We track every property available for sale and for lease in Greater Edmonton. Get the latest news and check the latest listings—anytime.

Leave a Reply

Your email address will not be published. Required fields are marked *