How did "Oh Mercy" end up sounding so great?

Hi,
Years ago, probably not long after it came out, an acquaintance gave me a CD of Bob Dylan's "Oh Mercy," which came out in 1989. Not being a Dylan fan, I never played it until a few weeks ago, when I noticed in another thread here that someone recommended it as a recording with an impressive sound stage.
I was blown away by the sonics of this recording. While clearly a big, multi-tracked studio effort, the sonics and sense of spaciousness are extraordinary, and this is just the garden variety CD.
Now, being that 1989 was hardly a golden age of pop music recording, it got me wondering: How did this record end up sounding so amazing? I mean that two ways:
1) Technically, what techniques did the engineers and producer use to get it to sound that way? Miking? Artificial phase manipulations? I don't know anything about studio recording so I'm just guessing here.
2) How, in an era of crappy sounding, compressed recordings, was such a feat pulled off (because it leaves you wondering why more records of that era didn't sound so good)?
Thoughts?