The Vancouver-based trio of PCI Developments, Northland Properties, and Nicola Wealth have sold the Cottonwood Centre shopping mall in the heart of Chilliwack.
The Cottonwood Centre sits at 45585 Luckakuck Way, along Vedder Road between the Trans-Canada Highway and Luckakuck Way. Notable tenants include Save On Foods, Old Navy, Dollarama, London Drugs, and TD Bank, among many others. In addition to the main building, the property also includes several standalone buildings around the perimeter, including an Earl's Kitchen + Bar, Burger King, and Quesada Burritos & Tacos.
The shopping centre was originally constructed in 1974 and sits on a sprawling parcel that spans 22 acres and includes an abundance of surface parking. The Cottonwood Centre is located directly to the north of SmartCentres Chilliwack, a large retail centre owned by Ontario-based SmartCentres REIT (TSX: SRU.UN), and it's a short 10-minute drive away from Chilliwack Airport.
The mall itself houses over 255,000 sq. ft of space, not including the large Canadian Tire to the west. Although the Canadian Tire is connected to the mall, it is a separate legal parcel — 45495 Luckakuck Way — that was acquired by Concord Pacific in 2015 from Sears Canada.
The Cottonwood Centre was originally owned by Ontario-based Morguard Corporation (TSX: MRC), which sold it in 2019 for $73 million to PCI Developments and Nicola Wealth. It's unclear whether Northland Properties was involved at that time or if they acquired a stake later on.
Nicola Wealth's website states that they acquired a 45% stake — through Nicola Value Add Real Estate LP — in 2019, but the remaining ownership split is also unclear. The Cottonwood Centre, held under Cottonwood Mall Holdings Corp., was being managed by Warrington PCI Management, PCI Development's property management company.
The Cottonwood Centre at 45585 Luckakuck Way in Chilliwack. / Nicola Wealth
An industry source familiar with the transaction tells STOREYS that PCI Developments, Northland Properties, and Nicola Wealth sold the Cottonwood Centre to Finix Holdings in a transaction that closed in April. The purchase price was not disclosed, but BC Assessment values 45585 Luckakuck Way at $96,336,000.
The sale was brokered by Jim Szabo and Vincent Minichiello of CBRE Vancouver's National Investment Team, while the buyer was represented by Cynthia Dong of CASM Global Real Estate Corporation.
The Retail Market
The sale of the Cottonwood Centre is the latest in what appears to be an uptick in retail property transactions, particularly in areas on the outskirts or outside of Metro Vancouver.
In the second half of 2024, two large retail properties transacted in Abbotsford. Last year, QuadReal Property Group — the real estate subsidiary of the British Columbia Investment Management Corporation (BCI) — sold Clearbrook Plaza at 2655 Clearbrook Road and 31935 South Fraser Way to Wiebe Properties for $43,391,500.
Additionally, Salthill Capital also sold the retail centre known as South Fraser Gate, located at 32390 & 32346 South Fraser Way, to RMM South Fraser Gate Property Inc. for $24,750,000.
Continuing to the west, several retail properties have also been sold or listed for sale in Surrey and Langley in recent months. The Willowbrook Park Shopping Centre was sold by Valley Properties Ltd. to Shato Holdings Ltd. for $137 million, as previously reported by STOREYS. The retail property anchored by Canadian Tire at 7555, 7577, 7599 King George Boulevard was also sold in February, and GWL Realty Advisors has been trying to sell the Riverside Heights Shopping Centre at 14815 108th Avenue.
There has also been a lot of notable retail activity in Nanaimo on Vancouver Island. Last year, TD Asset Management and SHAPE Properties sold 6200 Oliver Road to CT REIT (TSX: CRT.UN) for $45,155,000. The adjacent Nanaimo North Town Centre mall that's valued at $78 million has also been put on the market, as has the Woodgrove Shopping Centre at 6631 and 6901 Island Highway that's valued at $216 million. The latter is owned by Chinese billionaire Weihong Liu, who has voiced a strong interest in making a bid for certain properties owned by Hudson's Bay.
