- What KingSett Capital nearing deal to acquire 700 and 750 West Pender Street
- Why IMCO and Cadillac Fairview tapped JLL to sell the complex earlier this year
- What next The buyer would realize an initial annual yield above 7%
KingSett Capital is in negotiations to acquire a downtown Vancouver office complex for up to $132m, which would be the city’s biggest single-asset office sale this year, Green Street News can reveal.
Investment Management Corp. of Ontario and Cadillac Fairview are in talks to sell 700 and 750 West Pender Street, which total 293,000 sq ft, for $400/sq ft to $450/sq ft. In that range, KingSett would see a first-year capitalization rate above 7%.
JLL launched the marketing play in February with guidance of $135m, which pegged the capitalization rate at 7.4%.
Save for CPP Investments’ $730m office portfolio sale to Oxford properties in May, which included four Vancouver assets, the impending deal marks the largest office transaction the city has seen in a year. In May 2024, CPP Investments and Oxford sold two assets, at 401 West Georgia Street and 402 Dunsmuir Street, to Deka-Immobilien Global for a combined $300m, according to Green Street’s Sales Comps Database.
The twin 17-storey West Pender Street buildings are 86% occupied with a weighted average lease term of over four years.
Gracorp, MDC Canada and Randstad Canada lease space at 700 West Pender, which was completed in 1972. The building at 750 West Pender was completed in 1976. Tenants include BC Financial Services Authority, Immigrant Employment Council of B.C. and Pinnacle Silver and Gold Corp.
A glass concourse connects the buildings at ground level. Retail space there is tenanted by Eyes Inspire, Telus and Tim Hortons – as well as to CF Pacific Centre.
The complex has a 217-car parkade, an outdoor terrace and a fitness centre. It’s WELL Health-Safety and BOMA Best gold-certified. The owners have spent over $10m on capital improvements over the last 10 years.
At the corner of Granville Street, the buildings are within 2km of the Granville Street Bridge, the Cambie Street Bridge and Stanley Park. They offer a direct connection to the SkyTrain’s Canada Line and Expo Line.
KingSett is a private equity real estate investment firm headquartered in Toronto. Jon Love is executive chair and founder. The firm has been a net seller in recent months. Since March, it has sold a Mississauga office building for $32m, floated offices in Etobicoke, Ont., for $29m, put a Metro Vancouver warehouse in play for $63m and listed a Greater Toronto Area industrial portfolio for $93m.
IMCO is an independent investor operating on behalf of Ontario’s public-sector institutions. Bert Clark is president and chief executive of the Toronto-based company, which manages over $86bn of assets.
Cadillac Fairview is wholly owned by the Ontario Teachers’ Pension Plan and has $29bn of assets. Helmed by president and chief executive Salvatore Iacono, the company is headquartered in Toronto. The firm recently sold Lime Ridge Mall in Hamilton, Ont., for $416m, is mulling the sale of Promenades St-Brunov, in Saint-Bruno-de-Montarville, Qué., for $450m and has Toronto’s Yonge Corporate Centre on the block for $170m.
