650 View Street is prominently situated at the intersection of Broad Street and View Street, which is considered Victoria old town district. The property was initially constructed for TD Canada Trust in 1956, and was one of the first office buildings in the downtown.
The office component contains 22,233 sf (approx) of rentable area over three storeys with 4,318 sf of vacant retail space on the ground floor. The NOI at the time of sale was approx $357,900. The property is on corner lot and boasts 7,016 square feet.
The property was marketed by Josh Sookero of Avison Young Vancouver for $6,500,000. The successful purchaser was partnership between Robert Fung of Salient Group Vancouver and Frank Ainger a private investor based in Vienna, Austria. Together they purchased the property for $6,300,000 on April 17, 2019 for an implied cap rate of 5.68%.
Salient Group specializes in heritage restorations in Vancouver’s gastown. This acquisition fits the typical investment thesis of Salient, in that it is a historic building that has experienced prolonged vacancy. I suspect a conversion to a more modernized co-working space or residential use will follow in the future.