- What Developer Westbank Corp. sold the M2 for $115m
- Why The building is in Vancouver’s Mount Pleasant neighbourhood
- What next Another building in the development, the M4, will be completed soon
Spear Street Capital has purchased an office building in Vancouver’s Mount Pleasant neighbourhood for $115m, Green Street News can reveal.
Developer Westbank Corp. sold the 169,000 sq ft property, dubbed M2, in a deal that closed on July 13. The valuation works out to $680/sq ft and represents a going in capitalization rate around 6%. That’s expected to rise as high as 7.5% upon stabilization.
The building, at 114 East 4th Avenue, is 80% leased. Life sciences company Zymeworks and web services company Trulioo are the largest tenants.
M2 was part of a larger development in Mount Pleasant called Main Alley, where its sister building, M4, is expected to be completed in the coming months.
The development will comprise five buildings, including a residential building marketed toward tenants in creative industries.
Westbank has been under pressure since last year as reports of unpaid bills and liens fueled speculation that the company is in financial trouble. Westbank has denied it is under such stress.
Spear Street owns and operates office properties in the U.S., Europe and Canada. It has offices in San Francisco and New York.
