Selling Entitled Development Sites - The Victoria and Baycrest example

View of Mt. Baker from Burke Mountain

Selling entitled development sites isn’t easy. Selling development land that is promised to be an entitled development site in the future is even more difficult. The Victoria and Baycrest deal is a perfect example of how a seemingly straightforward transaction can turn into a drawn-out saga full of unexpected twists and turns—but also how persistence, smart negotiation, and the right strategy can lead to a fantastic outcome for the buyer.

A Simple Deal… Or So We Thought

The Victoria and Baycrest site was the first file I ever worked on as a land broker, and at first, it looked like a breeze. My senior broker had already locked in a deal with a solid buyer, and the seller was in the process of rezoning for 62 townhomes. By the summer of 2017, we were on cruise control, just waiting for the entitlements to be finalized so we could wrap things up. What could possibly go wrong?

Well, a lot.

The First Major Curveball

By late 2017, the Vancouver land market was shifting, and despite having "hard money" posted, the original buyer wanted out. Luckily, a colleague found a new interested party, and the contract was assigned to them. Deposits were swapped, rezoning continued, and we thought we were back on track.

Then, in December 2017, something happened that nobody could have predicted. The new buyer was horrifically injured in an accident. Given the extreme circumstances, the sellers agreed to return all deposit money to the Buyer and to dissolve the agreement. Just like that, our $24 million deal vanished into thin air.

Finding Opportunity in a Shifting Market

By mid-2018, the sellers were ready to bring the property back to market. A local realtor reached out to me, asking if I had any interested buyers at the previous price of $24 million. I tapped into my network and quickly realized the market had shifted—buyers weren’t willing to pay anywhere close to that number.

After some negotiations, we got the property under contract with a local developer I was representing for $17 million. The deal was structured to close after rezoning and once the city confirmed that offsite service work was substantially finished. But at condition waiver time, we successfully negotiated the price down to $15 million—a full $9 million drop from the original 2017 deal. It was a massive win for my developer client.

Navigating Delays and Securing a Strong Position

While we expected a relatively quick process, delays in the development application and servicing work slowed things down. Fortunately, we had structured a contract that protected my client from unforeseen costs and shifting timelines. While the seller faced mounting challenges, my client was able to hold firm, knowing they had negotiated a deal that accounted for these risks.

The deal didn’t actually close until 2023—nearly seven years after the sellers originally put it on the market. What started as a straightforward rezoning and flip turned into a marathon, but in the end, my client secured the property at a steep discount in one of the best locations for townhouse development in the region. The long game paid off in a big way.

Key Takeaways from the Victoria and Baycrest Deal

1. Persistence Pays Off

The deal took way longer than expected, but in the end, it closed, and my client walked away with an incredible acquisition. Staying patient and persistent is key in real estate.

2. Smart Negotiation Makes All the Difference

By understanding the market shifts and structuring the contract properly, we were able to secure a deal that ultimately saved my client millions of dollars.

3. Market Conditions Can Create Opportunity

Real estate values, political climates, and market demand can change quickly. If you’re working on a deal with a long timeline, knowing how to use these shifts to your advantage is critical.

4. The Deal Isn’t Done Until It’s Done

Never assume a deal is locked in until all conditions are met, the ink is dry, and the money has cleared.

5. Protect Your Position with a Strong Contract

A well-written contract can mean the difference between a nightmare and a major win. In this case, it ensured my client wasn’t left footing the bill for delays and unexpected costs.

Final Thoughts

This deal had its fair share of challenges, but in the end, it turned into a huge success for my client. The Victoria and Baycrest deal serves as a great example of how patience, strategic negotiation, and market awareness can turn a difficult situation into a winning opportunity. While land deals can be unpredictable, the right approach can lead to incredible results.