An east Vancouver industry property has sold for $10.5 million and is expected to be redeveloped as a rental-apartment building.

Local developer Third Space purchased the property at 57 Lakewood Drive from a private seller, Mark Goodman, principal of Goodman Commercial, told Connect in an interview.

Goodman Commercial represented the seller in the transaction. The purchase price equated to $145 per square foot.

“This is an important sale as it provided a data point in a market with few land transactions,” said Mark Goodman.

Subjects were removed Friday and the deal closed Monday as the seller sought to divest before a federal capital gains tax increase took effect Tuesday.

“So, there’s one business day between subject removal and closing, which is unheard of, because of the capital gains [tax hike],” said Mark Goodman.

As a result of the increase, investors whose sale profits exceed $250,000 on or before Tuesday must now pay tax on two-thirds of a capital gain instead of the one-half.

“Although [the seller] reduced the price below what they originally would have liked to see, the net savings were quite beneficial,” said Mark Goodman. “And, the buyer, in return, was able to move forward with a site that they saw good value [in.]”

Third Space acquired the property after a previous deal involving a different prospective buyer collapsed, said Mark Goodman. Altogether, Third Space took two weeks to complete the acquisition.

The site’s zoning allows for either industrial or low-to-mid-rise residential use.

Photo: Courtesy of Goodman Commercial