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.
Chad GriffithsPartner, 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 BrownPartner, 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 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.
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