Bay Centre Shopping Mall Changes Hands

VICTORIA, BC—The Bay Centre in Victoria, has changed hands, and according to broker Avison Young, it might be the first big deal in the market this year.

Michael Keenan, Avison Young principal, and managing director of the company's Vancouver office, announced the transaction, but did not disclose the buyer or the price.

The off-market sale of the 407,000-square-foot Bay Centre, a four-level enclosed regional mall located on approximately three acres of land in the heart of Victoria's commercial core, closed on February 11. Victoria is the provincial capital of British Columbia, Canada.

“This transaction is an indication of the faith placed in the future revitalization and long-term sustainability of Victoria's downtown retail and commercial core,” said Avison Young principal Michael Gill who, along with principal Bob Levine, represented the seller in the transaction. “There are a lot of new highrise residential developments on the books for the area, and the new owners have a long-term view for the property involving improvements to the asset on several fronts.”

The vendors were LaSalle Investment Management and a member of The Westcliff Group of Companies. The subject property is located at 1150 Douglas Street in Victoria, which was recently named one of the world's friendliest cities in a Condé Nast Traveler tourist poll released in August 2014.

The mall is anchored by The Bay on a long-term tenancy and includes such other notable tenants as Sport Chek, Coast Capital Savings, Goodlife Fitness and Earls Restaurants.

This transaction marks the second significant investment in Victoria's downtown core following Bosa Development Corp.'s acquisition of the world famous Empress Hotel in June 2014.

“There remains considerable interest in acquiring premium retail assets in irreplaceable locations,” adds Gill. “There are virtually no opportunities to acquire three acres in the heart of a downtown in one of Canada's top cities. This was one of those rare opportunities.”

Over the past six years, Avison Young has grown from 11 to 64 offices and from 300 to more than 1,700 real estate professionals in Canada, the U.S. and Europe.

Avison Young is the world's fastest-growing commercial real estate services firm. Headquartered in Toronto, Canada, Avison Young is a collaborative, global firm owned and operated by its principals. Founded in 1978, the company comprises 1,700 real estate professionals in 64 offices, providing value-added, client-centric investment sales, leasing, advisory, management, financing and mortgage placement services to owners and occupiers of office, retail, industrial and multi-family properties.