KingSett Capital has completed the acquisition of two downtown Vancouver office assets in a transaction that establishes a new pricing benchmark for the market. The purchase, valued at $125 million, represents one of the most notable office trades in Vancouver’s core since the onset of the pandemic.
The transaction includes the 16-storey office tower at 700 West Pender Street and its companion property at 750 West Pender Street, totaling 283,530 square feet. Cadillac Fairview sold the properties in a share-sale transaction, with financing provided through a $112 million loan from German commercial bank Landesbank Baden-Württemberg.
This sale reflects a broader trend of increasing investment activity in Vancouver, which remains one of North America’s tightest office markets with a vacancy rate of 8.2%. While newer trophy assets have commanded higher values — such as Deka Immobilien’s $280 million acquisition of 401 West Georgia and 402 Dunsmuir — this transaction highlights sustained investor demand for well-located Class B office product.
The properties traded at under $450 per square foot, well below peak pricing levels of recent years, suggesting that buyers and sellers are now reaching alignment on asset valuations. Industry analysts note that this sale effectively sets a market benchmark for nearly 30% of downtown office inventory, paving the way for additional transactions in the coming months.
Originally constructed in the 1970s, the properties stand prominently across from CF Pacific Centre, Cadillac Fairview’s flagship downtown retail destination. Current tenants include Mercer International, Copper Mountain Mining, and a diverse roster of firms in mining, construction, manufacturing, and technology. Combined occupancy across the buildings is approximately 86%.
This transaction underscores the resilience of Vancouver’s downtown office market and provides a clear reference point for owners and investors considering strategic dispositions or acquisitions.
