The company that bought a major piece of industrial property on the North Vancouver waterfront paid $143 million.
Dream Industrial Real Estate Investment Trust issued a press release on Wednesday including the purchase price for the 27.5-acre property at 1371 McKeen Ave.
The press release notes the property is strategically located in an established industrial node in close proximity to major trucking and shipping infrastructure. The property currently has 210,000 square feet of existing buildings, self storage, warehousing, marine industrial businesses, and a large footprint of industrial outside storage.
The rents paid by tenants at the site are “well below market,” the release adds.
The previous owner Wesbild, which bought the land in 2017 for $115 million, had sought to subdivide the northern 15 acres of the site into smaller lots accommodating various uses including film production, a food commissary, e-commerce, craft brewing and child care, but that plan was rejected by the District of North Vancouver’s approving officer, who cited the property’s poor transit and vehicle accessibility and a desire to protect the land for export purposes.
The release offers some window into Dream’s plans for the site.
“With a going-in cap rate of above six per cent before taking into account property management and leasing fees generated by the REIT, this acquisition provides a rare opportunity to acquire significant industrial outside storage scale in an established Vancouver industrial node at a price per acre that is below transactional market levels for industrial land,” said Bruce Traversy, chief investment officer. “The current mark-to-market opportunity of this asset, combined with an inelasticity of supply of land, allows us to unlock value immediately. In the long-term, we also see considerable potential to add value through intensification and repositioning opportunities.”
As of the end of 2024, the company’s total assets were valued at $8.1 billion, the release states.
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