KingSett Capital has acquired two office towers in downtown Vancouver for $125 million, a deal that could set a pricing benchmark for the region’s office market, CoStar reported.

The Toronto-based private-equity firm bought the 16-storey buildings at 700 and 750 W. Pender Street, which together total 283,530 square feet, from Cadillac Fairview in a share-sale transaction, the report states. And, German lender Landesbank Baden-Württemberg provided a $112-million loan for the purchase.

CoStar said the sale is among the most significant downtown Vancouver office transactions since the pandemic, noting that the properties sold for less than $450 per sq. ft. — well below the average price four years ago and short of their combined assessed value of $146.2 million. The deal highlights renewed investor interest in older class B offices despite higher vacancy rates compared with newer properties.

The towers, built in 1973 and 1976, sit across from Cadillac Fairview’s CF Pacific Centre. They are 86% occupied, with tenants including Mercer International and Copper Mountain Mining.

JLL marketed the properties, with brokers Edgar Buksevics, Kevin Meikle and Mark Trepp handling the listing.

Photo: Cadillac Fairview