First Capital REIT Sells 50% Stake In North Vancouver Project For $29M

On Tuesday, Toronto-based First Capital REIT (TSX: FCR.UN) announced its Q3 2024 results, which revealed that the retail-centric REIT had sold its stake in a project in North Vancouver.

"During the third quarter, First Capital entered into a firm agreement to sell its 50% interest in 200 West Esplanade, North Vancouver for approximately $29 million," the REIT said in a press release. "The property is encumbered by a secured construction facility that will be assumed by the purchaser on closing, which is expected in the fourth quarter of 2024."

First Capital did not identify the purchaser, but a source familiar with the transaction told STOREYS that they were bought out by Cressey Development, the Vancouver-based real estate developer that First Capital partnered with on the project.

The project is a nine-storey mixed-use building with 75 rental units and 8,000 sq. ft of retail space called Victor. It sits at 200 Esplanade West, about one away from ICBC's headquarters, which was sold to the Province earlier this year, and Lonsdale Quay.

The property is legally known as 65 Chesterfield Avenue, which BC Assessment values at $48,836,000, a valuation that dates back to July 1, 2023. Victor completed construction in December 2023, according to Cressey Development's corporate website.

A May 2024 leasing brochure that remains on First Capital REIT's website indicates that the building has four retail units of various sizes. Asking rent was not disclosed, but the additional rent — that includes various property operating expenses — is $20.40 per sq. ft, according to the brochure.

According to Google Maps, tenants currently include a flooring store, a pet store, and an alternative mortgage solutions company called First Circle Financial. (No relation to First Capital.)

Victor, from along Esplanade West in North Vancouver. / Cressey Development

Aside from Victor, Cressey Development's other projects on the North Shore include Mason and Century in North Vancouver, as well as Bellevue in West Vancouver.

According to First Capital REIT's website, the North Shore makes up a significant portion of the properties it owns in British Columbia. Of the 16 properties listed on its website, five (including Victor) are located in North Vancouver, with the others being Pemberton Plaza, Harbour Front Centre, Time Marketplace, and Harbour Plaza.

Elsewhere in Metro Vancouver, First Capital REIT is currently in the process of redeveloping two properties it owns. Last year, the REIT received approval for a master plan project in Burnaby. This summer, it then initiated plans to redevelop the Semiahmoo Shopping Centre in Surrey.