Maroc - STOREYS.COM - A La Une - 27/Jan 22:05

Reliance Properties Sells Downtown Vancouver Office Building For $24M

The Vancouver office market is not what it once was. Save for a few notable ones such as Oxford Properties' sale of 401 W Georgia and 402 Dunsmuir and TD Greystone selling a 20% stake in Telus Garden to Morguard, transactions have been few and far between this past year, making each one that occurs noteworthy. In mid-December, however, Casey Pollard, Senior Vice President at CBRE Vancouver, announced that he had sold the office building at 1190 Melville Street in downtown Vancouver, at the intersection with Bute Street near Coal Harbour, on behalf of Vancouver-based real estate developer Reliance Properties. CBRE did not disclose the price, but the office building was sold for $24 million, according to commercial real estate brokerage Cushman & Wakefield. With the office building having approximately 48,000 sq. ft of space, the sale price translates to approximately $500 per sq. ft. The main entrance to 1190 Melville Street in Vancouver. / Reliance PropertiesBC Assessment values the property at $22,086,000 in an assessment that dates back to July 1, 2024, an increase from the previous assessment of $20,629,000 that is largely attributed to the increase in land value.The buyer was undisclosed, but the property is held under 539948 BC Ltd. The office building was constructed in 1959, rises seven storeys, and has undergone renovations focused on the front entrance, lobby, elevators, heating, air conditioning, and accessibility. Current tenants include a Better Business Bureau office, Ashton Testing Services, and a pharmacy.It is located next door to the Orca Place condo tower developed by Peterson Group and the exterior of the office building — also known as Wyland Place — that faces Orca Place is covered by a mural of orcas that was painted by Robert Wyland (and is now obscured). Down the block at 1133 Melville Street is then The Stack, the 36-storey Class AAA office building that completed construction in 2023 as part of the last wave of office developments that were conceived before the COVID-19 pandemic and completed throughout 2022 and 2023.According to CBRE, some office space in 1190 Melville Street is currently available, at a gross rent of $46.16 per sq. ft and a net rent of $25 per sq. ft. Elsewhere in Vancouver, Reliance Properties also owns numerous other older office buildings scattered around downtown Vancouver, including 402 W Pender Street, 1199 W Pender Street, 744 W Hastings Street, and 744 Beatty Street.