The $500M sale of Bayview Village reported late in 2013 had a lot of people in the commercial real estate community scratching their heads. (After reading this, any future head-scratching will be presumed therapeutic.)
The deal for the 322k SF shopping centre formally closed on Jan. 16 (3.7% cap rate). British Columbia Investment Management Corp (BCIMC) was the buyer, while Orlando Corp was the seller. No one could figure out why BCIMC paid as much as they did. However, an industry source helps us understand—BCIMC also owns Bayview Mews (bought in 1997), a large apartment complex/development across the street. That opens up vast development potential. “Nothing about that deal is a short-term play,” says the source. “This is how you build extreme wealth in real estate.”
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