We are pleased to share the success of one of our recent dispositions on behalf of the Limited Partnership at 32559 Logan Avenue, Mission.
July 5, 2024
Vedderbrook Properties is pleased to share the success of one of our recent dispositions on behalf of the Limited Partnership at 32559 Logan Avenue, Mission. We are thrilled to have sold our asset this past May and are extremely pleased with the results. This was a Special Acquisition Project ("SAP"), which fell outside of the traditional value-add then refinance criteria for Vedderbrook but made sense as a short term project to acquire and then externally sell the asset in under 18 months, providing far above market returns to the Partnership.
When the property was acquired, the market was still in an upward trend and the sky-high interest rates had yet to hit the marketplace. Throughout the project, we saw interest rates climb over 800% since the record low in 2022. The lending world felt like it hit a brick wall and construction costs hit all-time highs. The market halted and prices seemed to have started to see a downward slide as investors sat on the sidelines.
The current lending environment has pushed prices down on income producing assets as lenders tighten lending requirements. We have seen cap rates increase by over 35% in some secondary markets, pushing them to unprecedented levels as buyers struggle to obtain funding for commercial properties as most Schedule 1 banks hold a prime rate of 7.2%. Through all this, we achieved a great sale price and return to our LP’s and thank everyone for their continued trust and support.
Logan Crossing
Logan Crossing, located at 32559 Logan Avenue in Mission, is made up of 10,885 SQFT of retail within two buildings over 1.13 acres of land, located in one of the city's highly desired retail corridors. Situated in a prime retail area, this property enjoys a coveted location in Mission, BC. Nestled just off the bustling Lougheed Highway, the property features convenient access to a diverse range of shops, restaurants, and amenities. This sought-after neighbourhood is a hub of activity, attracting both local residents and visitors from afar.
