The story of Vancouver’s wildest property deal

The story of Vancouver’s wildest property deal

Last fall, Bruno and Peter Wall received an offer too good to refuse. The prominent Vancouver property developers behind Wall Financial Corp. had spent $16.8 million to buy two aging walk-up apartment blocks on adjacent lots in 2013. Now a consortium of investors offered the Walls $60 million for the site alone, which BC Assessment had just valued at $15.6 million.

Business In Vancouver

Resort spat illustrates reserve land deal complexities

Delwen Stander has been vacationing in Osoyoos since 1980, but he made it his home away from home in 2007 when he and his wife bought a quarter share of a lease at the Osoyoos Indian Band’s (OIB) Spirit Ridge resort for $600,000. However, Stander is also vice-president of the Spirit Ridge Owners’ Association (SROA), which struggled with Calgary-based developer Bellstar.

Business In Vancouver – Business In Vancouver

Library estimate killed Saskatoon megaproject: Source

An estimate three times more than originally projected to complete a new downtown Saskatoon library appears to have killed a $500-million project in October. City manager Murray Totland issued an unusual statement on Tuesday saying the city is not seeking any specific conditions for the sale of the police station site central to the deal.

Saskatoon StarPhoenix

Calgary asks Flames to consider other stadium locations

The City of Calgary has asked the Calgary Flames to consider other locations and options for a new arena and football stadium. Council has invited Calgary Flames Sports and Entertainment, who also own the CFL’s Stampeders, to respond to a city manager’s report stating the proposed location on the west side of downtown was too costly.

TSN.ca – Calgary Herald – CBC News

Decision day looms for LeBreton Flats

One of Ottawa’s biggest secrets is about to be spilled. The National Capital Commission will reveal Thursday which of two competing multibillion-dollar development proposals for LeBreton Flats has been ranked highest by an evaluation committee. That doesn’t necessarily mean the runner-up will be finished or cast aside as a loser, however.

Ottawa Citizen – CBC.ca

Developer makes bid for derelict Pointe-Claire mall site

The eyesore is gone and the site decontaminated. And now a conditional offer to purchase the swath of land near the intersection of Highway 20 and Sources Blvd. in Pointe-Claire is on the table. The site was once home to a rundown strip mall and a small hydro building could cost the land’s trustee up to $700,000. 

Montreal Gazette

Taking a look inside YouTube Space

YouTube has secured a foothold in the Canadian digital market with YouTube Space Toronto — a well-equipped ‘creative industry incubator’. In these studio spaces, video creators can access high-tech resources to produce professional quality web content. The Toronto operation, part of George Brown College in the city’s east end, is the ninth YouTube Space worldwide.

CBC News – Financial Post – Toronto Star

Ubisoft to open Montreal entertainment centre

Ubisoft‘s next bid to expand its brand is a family entertainment centre in Montreal drawing on the company’s popular Rabbids video game franchise. Slated to open in August on Montreal’s West Island, the 15,000-square-foot centre is the brainchild of Ubisoft Canada managing director Olivier Ernst.

Montreal Gazette

Office space preferences changing: Brookfield

Paul Schulman, Brookfield Office Properties’ (BPO.PR.X-T) president and COO, and Joseph Stettinius, Cushman & Wakefield’s chief executive of the Americas recently weighed in on rapid and watershed changes taking place in the office environment. “A lot of tenants are downsizing for efficiency,” Schulman said, “ . . . but while personal space is shrinking, the tenants aren’t getting smaller.”

National Real Estate Investor

Ottawa approves two 26-storey, car-free towers

The City of Ottawa’s planning committee has approved a car-free development in the ByWard Market. Textbook Suites wants to build two, 26-storey towers to be joined by a three-storey podium, to create 275 units intended for students. There would also be a 529-square metre retail space on the ground floor.

Ottawa Citizen – CBC

DND building fire contingency plan takes shape

The Department of National Defence is looking at the possibility of having public servants work nights or share desks as it deals with the closure of one of its main buildings in Gatineau after last week’s fire displaced 1,800 DND staff and Canadian Forces personnel.The closure could stretch into months.

Ottawa Citizen – CBC.ca

Richmond and Delta become prized industrial areas

The industrial property markets in Richmond and Delta are experiencing near-record levels of deals and dollar volumes sparked by low vacancies and surging rents, experts say. Industrial vacancy in Richmond dropped to two per cent by the end of 2015, due to strong leasing activity and a lack of new inventory delivered to the market, according to Avison Young’s Spring 2016 Richmond/Delta Industrial Report. 

Vancouver Sun

How Expo 86 changed Vancouver

Vancouver real estate industry veterans sometimes remark on how the younger generation has no first-hand knowledge of the dramatic circumstances that formed the backdrop to Expo 86: double-digit interest rates, the over-leveraged investors who lost everything, the massive reclamation and repurposing of 225 acres of industrial land.

Business In Vancouver – Business In Vancouver – Business In Vancouver – Business In Vancouver

Record-breaking Florida development underway

As the United States’ second-largest mixed-use urban development and the biggest building project in Florida’s history, Miami Worldcenter is underway. Constructed on a 1.1 million-square-foot site spread across a half-dozen downtown city blocks, the multi-billion-dollar, mega-retail, residential, entertainment and transportation complex is to be completed in 2018.

Construction Equipment Guide – The Real Deal – Financial Times – Miami Herald

Supertall wood tower for London, U.K.

World Architects – CNN Style

Featured Column

Why commercial real estate projects need video

Getting media attention for commercial and industrial real estate developments can be pretty tough these days. In a world of shrinking media and mass layoffs, there are fewer and fewer news outlets that write about real estate in Canada.

Read more

Title insurance — a matter of opinion

“What more am I getting?” This is one of the first questions people ask when their lawyer suggests purchasing title insurance on a transaction. Traditionally, when a real estate deal closed, the purchaser and lender relied on a lawyer’s opinion letter.

Read more

Market Trends and Research

Toronto North and East office markets holding steady

While leasing activity in the Toronto North and East office markets lags behind the city’s buzzing downtown, they’re not struggling to keep up with new developments coming on stream as is the case in Toronto West.

Property Biz Canada

GTA investment dollar volume dips: AY

The Greater Toronto Area’s commercial property investment market took a pause to start 2016 as first-quarter investment dollar volume did not keep pace with Q4 2015. Despite the slow start to 2016, overall investment dollar volume is up year-over-year, according to today’s Avison Young’s First Quarter 2016 Commercial Real Estate Investment Review – Greater Toronto Area.

Canada Newswire

Saskatoon industrial vacancy rate rising: Colliers

With vacancy rates hovering above seven per cent and “negligible” absorption, Saskatoon’s industrial real estate market continues to feel the effects of the commodities downturn, according to a new report from Colliers International. Saskatoon currently has 1.6 million square feet of vacant industrial space, with an additional 200,000 square feet of “projected abandonment this year,” the report states.

Saskatoon StarPhoenix

Three factors likely to impact U.S. RE investing

U.S. real estate has been on a good run, the stock market, not as much. Both trends should continue throughout 2016. The industry represents a surer bet than other types of investments, particularly equities. Real estate is likely to benefit from continued low interest rates and the perception it is a safer type of investment than others.

TheStreet.com

Real Estate Companies

Busch siblings battling over Grant’s Farm

Kraftig Brewing Co. founder William K. “Billy” Busch is offering $1 more than his siblings in his effort to buy Grant’s Farm in south St. Louis County. Busch Monday increased his offer to $26,000,001. He is offering an additional $8 million to buy the family mansion and 22 acres that adjoin the attraction that is home to some of the Budweiser Clydesdales.

Winnipeg Free Press

Lone Star closes fifth CRE equity fund

Lone Star Funds, a real estate-focused private equity firm, said Tuesday it has raised $5.9 billion US for a new fund that will invest in the debt and equity of commercial property assets in the Americas, Europe and Asia Pacific. Investors in Lone Star Real Estate Fund V include corporate and public pension funds and sovereign wealth funds.

Reuters

REOC Financial Reports

Latest results:

* Delavaco Residential Properties Corp., (DVO.U-X), Canada Newswire

REIT Financial Reports

Latest first-quarter reports:

* Brookfield Canada Office Properties, (BOX.UN-T), Marketwired  

* Choice Properties REIT, (CHP.UN-T), Canada Newswire

Real Estate Investment Trusts

Schorsch’s AR Global looks to consolidate REITs

Nicholas Schorsch’s AR Global is attempting to consolidate more than a half-dozen REITs with almost $10.5 billion in assets, according to two sources. Two REITs, American Finance Trust Inc. and Global Net Lease Inc., (GNL-N) would purchase five other real estate companies managed by AR Global, formerly known as AR Capital, according to the sources.

InvestmentNews

REITs revitalize Philly’s Market Street

Two big-name REITS are contributing to the transformation of Philadelphia’s Center City from a traditional business district into a live-work-play neighbourhood thanks to its new developments along Market Street. Attendees at the 2016 ULI Spring Meeting took a tour of several Brandywine Realty Trust (BDN-N) and Liberty Property Trust (LPT-N) properties, including a renovated office building.

Commercial Property Executive – Commercial Property Executive

U.S. mortgage REITs enjoying a renaissance

As the housing market recovers, investors are taking another look at some of the investments derived from bets on mortgage credit. REITs that buy mortgage-backed securities and other income-producers may be ready for their moment, according to analysts interviewed by MarketWatch. Year-to-date share price appreciation among mortgage REITS is mixed, but several are in the double digits.

MarketWatch

SEC decision will save REITs money: Lawyer

Michael McTiernan, a partner at Hogan Lovells LLP, said the Securities and Exchange Commission’s (SEC) recent no-action letter will allow REITs to avoid “what were a lot of silly expenses at having those types of transactions be registered with the SEC. It’s a good, cost-saving move for REITs.”

REIT.com

Legal Corner

Real property – Too good to be true?

Real property is any property attached directly to land, as well as the land itself. This can include not only buildings and other structures, but also rights and interests. Remember the old adage “if something appears too good to be true it probably is”? 

Ottawa Business Journal

Calgary developer broke securities laws

A Calgary developer and financial mentor faces fines and costs of more than $300,000 for breaching Alberta securities laws in a number of real estate ventures. Candice Anne Graf also faces an array of bans from the financial markets for at least 10 years under a ruling issued Tuesday by the Alberta Securities Commission.

Calgary Herald – Canada Newswire

Retail

Edmonton to allow more liquor stores in the suburbs

Edmonton city councillors approved a plan Tuesday to allow more liquor stores in large suburban shopping districts. It will go to public hearing later this year for a final decision. The changes would still require liquor stores to be 500 metres apart, unless separated by a major road, but could allow several new stores in or around large commercial parcels such as West Edmonton Mall and large suburban retail centres.

Edmonton Journal

Jean Coutu’s profit slips

The Jean Coutu Group Inc. (PJC.A-T) says it earned $51.5 million in its latest quarter, down from $55.2 million in the same quarter last year. The pharmacy retailer’s Q4 revenue totalled $706.6 million, down from $713.9 million in Q4 2014 due to a drop in sales of non-prescription drugs for cold and flu.

Globe and Mail

Deptartment stores must downsize quicker: Report

Last week’s announcement of U.S. store closings from Sears Holdings (SHLD-Q) represents a “marginal” downsizing in the view of Green Street Advisors, with just 10 Sears locations scheduled for closure along with 68 Kmarts. Retailers across the department-store spectrum need to pick up the pace on shutting unprofitable locations, according to Green Street.

Globest.com – The Real Deal – Chain Store Age

Restaurants and Eateries

Restaurants in private homes — sharing economy’s latest trend

Nadya Khoja grinds pepper over brussel sprouts sizzling on the stove. Her roommate, Sarah Lee, mashes feta, butter and parsley in a bowl.  The evening’s menu was carefully planned: brussel sprout salad topped with apples and walnuts, followed by macaroni and feta cheese with tiger shrimp.

CBC

New Development

Developer on Kingston marine museum: ‘We tried working with them’

The Marine Museum of the Great Lakes has been given notice to move by its new landlord, developer Jay Patry.  “It’s incredibly unfortunate. We tried working with them diligently for four months,” Patry told the Whig-Standard. “Our first priority was to keep them in the space.”  Patry purchased the lakefront property from the federal government in January.

The Whig Standard

Alberta to fund new emergency facility

The Alberta government is dedicating $18.5 million to a new emergency operations facility in the heart of Kananaskis Country as the number of visitors to the region keeps growing. On Monday, Banff-Cochrane MLA Cameron Westhead made the announcement at the current facility, located along Highway 40 near Kananaskis Village.

Calgary Herald – CBC News – Ottawa Citizen

Resorts

Cape Breton’s Keltic Lodge gets $4M makeover

Cape Breton’s iconic Keltic Lodge Resort will show golfers and guests this year a new face that’s been $4 million in the making.  Over the past several months, Ontario-based GolfNorth Properties, which took over management of Keltic and the Cape Breton Highlands Links Golf Course last year, has spent twice what it had originally intended on changes and renovations.

The Chronicle Herald

Renovation and Restoration

Hamilton’s Depression-era garden reblooms

Generations have visited the Royal Botanical Gardens’ historic and spectacular Rock Garden even though it’s located in a hole in the ground at the edge of Hamilton. After four years of planning and renovating, the Rock Garden finally has an address, not to mention an updated look and amenities befitting this local treasure.

Globe and Mail

Developers turning Rust Belt hulks into hotels

Covington, Ky., a city of 40,000 across the Ohio River from Cincinnati, seems like an odd place for a high-end hotel. For Aparium Hotel Group‘s Mario Tricoci, that’s a selling point. Last year, the Chicago developer hooked up with a local real estate investor on a $22 million retrofit of a century-old, seven-story, defunct Covington department store.

Bloomberg

Infrastructure

Montreal’s Alexandra Pier to get facelift

Montreal’s Alexandra Pier and Iberville Passenger Terminal will be completely restored and renovated in time for next year’s cruise season, the Montreal Port Authority announced on Monday. The $78-million project will receive $20 million in funding from the Quebec government and $15 million from the city of Montreal.

Montreal Gazette – CBC News

International

Spotlight shining on China CRE

China’s real estate market is at it again. CRE sales prices rose 10 per cent year-over-year in the first quarter to $2.8 billion, according to Jones Lang Lasalle in China. “The large gap between buyer and seller expectations resulted in a scarcity of assets,” said Anthony Couse, head of capital markets for Jones Lang.

Forbes

Maker Maxity becomes home to CPP in India

Maker Maxity, the plush office complex owned by Mukesh Ambani and Maker group in Mumbai’s famed Bandra-Kurla Complex is becoming home to global sovereign and pension funds such as Canada Pension Plan Investment Board (CPPIB), Singapore’s GIC and Qatar Investment Authority (QIA).

Business Standard

Technology

Technology eliminating geography as investing barrier

Technology has enabled radical changes in how and where people invest in real estate. The adage real estate investing is a local business no longer holds true. Millennials, skilled professionals, overseas investors and retirees now have the ability to acquire properties, commercial developments and even homes like they acquire stocks or bonds.

TechCrunch

Other