Spanky, 1701 Douglas is the entire block bounded by Douglas, Fisgard, Blanshard and Herald Streets. The $32.8 million is the cost to construct the Hudson Mews building. You are comparing apples to oranges in your statement.
Perhaps your motivation is influencing your conclusion?
My understanding is that the "entire block" as you put it has been divided into 3 parcels, one of which is the Hudson Mews. The BC and Victoria Governments have agreed to purchase 1 of the 3 parcels for $32.8M. The assessed value of all 3 parcels is $29.8M.
Now I understand that Townline has invested some money in the property but my point is that I don't see how this deal is a 20% discount to "market".