The future of the Metrotown neighbourhood remains in flux.
Metro Vancouver Regional District announced last week it was selling its Burnaby offices at 4330 Kingsway and 5945 Kathleen Ave. in anticipation of its move to a new home – the Metrotower III, located a few blocks away.
It’s still too early to say how much the properties will be listed for, according to CBRE Canada vice-chairman Tony Quattrin, who is handling the sale on behalf of Metro Vancouver.
“We’re just kind of out there in the awareness stage right now, just making people aware of the opportunity,” Quattrin said, adding that once his firm sees how the market is responding, he’ll have a better idea of how much the properties will go for.
According to B.C. Assessment, the properties at 4330 Kingsway and 5945 Kathleen Ave. have a combined assessed value of $87,708,000.
Quattrin said potential buyers have a few different options to consider for the site following the City of Burnaby’s approval of the new Metrotown Downtown Plan last month.
“You can buy it just as a straight development site because it’s just recently been up-zoned to the highest density zoning as part of the Metrotown plan, or you could retain the office space when Metro Vancouver moves out to its new building, and hold it as an income property,” he said.
The properties could potentially house up to 742,000 square feet of new mixed-used residential and commercial development, according to CBRE Canada.
“There will be a broad cross-section of interest; there’ll be domestic capital, local developers, some institutional interest, off-shore interests. It’s a high-profile site in an amazing market. Metrotown is just booming up there,” Quattrin said.
Proceeds from the sale of the two properties will be used to cover costs associated with the purchase of Metrotower III. The regional district bought the tower for $205 million from Ivanhoé Cambridge in 2015 and has plans to have all of the roughly 900 staff moved in sometime this year.
CBRE Canada is part of CBRE Group, the world’s largest commercial real estate services and investment firm. The Canadian division is behind a number of high-profile commercial sales, including Grouse Mountain Resort.
The goal is to close the sale of 4330 Kingsway and 5945 Kathleen Ave. by the end of the year, according to Quattrin.
