Retail assets saw continued strong performance in Q1 2021 with 79 percent increase compared to Q1 2020 amidst pandemic

June 14th, 2021

Metro Vancouver commercial sales hit $2.7 billion in Q1

WI Staff
Western Investor

Multi-family sales led the pace, but the $103 million dollar sale of MEC’s former headquarters also kept Vancouver the No. 1 investment market in Canada

Former MEC headquarters in Vancouver’s False Creek Flats sold for $103 million. | WI file

Multi-family sales led the pace, but the $103 million dollar sale of MEC’s former headquarters also kept Vancouver the No. 1 investment market in Canada

Commercial real estate through the first three months of 2021 reached a total of $2.7 billion in Metro Vancouver, the highest level since the fourth quarter (Q4) of 2018, reports the Altus Group.

The pace was led by a record total for apartment rental properties, but it was the $103 million sale of the former Mountain Equipment Co-op (MEC) head office that marked the high-water price for a single building.

According to Altus Group’s Investment Trends Survey for Q1 2021, Metro Vancouver remained as the number one investor-preferred market in Canada, ahead of Greater Toronto.

“The first quarter of 2021 represents the final opportunity for comparison against a pre–pandemic market, and the numbers indicate the Metro Vancouver market to be healthy, active and back to pre–pandemic levels,” Altus noted.

A record total of $738 million was invested in rental apartment assets in Q1 2021, representing a 73 per cent increase from Q1 2020 and the highest performing quarter of multi-family investment in the Vancouver market area since Altus Group started tracking transaction data in 1999.

Approximately 40 per cent of this overall number can be attributed to a single portfolio transaction, a total of 614 units across 15 buildings, which sold for a reported price of $292.5 million. The portfolio was acquired by a joint venture between InterRent Real Estate Investment Trust and Crestpoint Investments.

The MEC sale was the largest Vancouver office transaction of Q1 2021 and accounted for 43 per cent of total office property sales in the first quarter. The vacant 120,000-square foot building is located at 1077 Great Northern Way in Vancouver’s False Creek Flats. It was purchased by a joint venture between Low Tide Properties and PCI Group, by way of a share sale transaction.

The industrial sector also continued its momentum into Q1 2021, as investors and owner/users contributed a total of $649 million in the sector, representing a 12 per cent increase from Q1 2020.

Retail assets saw continued strong performance in Q1 2021, with $386 million in total investment volume, representing a 40 per cent increase from the previous quarter and a 79 per cent increase from Q1 2020, Altus Group reports.

 

© 2021 Western Investor

Canadian home prices average projected to be increase of 5% in the next half year

June 10th, 2021

What’s happening with house price growth in Canada?

Ephraim Vecina
Mortgage Broker News

Canadian home prices are likely to grow by an average of 5% in the next half-year or so, but, surprisingly, the largest gains will not be in Toronto, nor in Vancouver, according to a new forecast by Finder.

In the results of its latest poll of economists, Finder said that the most significant price increases by the end of the year will be seen in Hamilton, with an average gain of 9%.

This will be followed by Toronto at 7%, and then by Montreal and Ottawa at 6% each. Vancouver, Halifax, and Quebec City will post average increases of 5% apiece, while Calgary, Edmonton, and Winnipeg will see growth rates of around 4% each.

“Canada’s real estate frenzy continues with no major signs of stopping,” Finder said in its analysis. “In fact, with our experts predicting price increases in every major market for the remainder of 2021, the long-awaited correction that young home buyers priced out of the market have been hoping for doesn’t seem to be on the horizon.”

Read more: BoC on what’s currently amplifying housing market risk

However, while the situation has pressed many Canadians – millennials and Gen Zers, in particular – into creating groups like “Canada Housing Crisis” to compel governments into implementing meaningful change, only 24% of Finder’s experts believe that such grassroots movements could be effective, while 35% are sceptical of the impact of pressure groups.

“The housing market has eliminated many first time buyers [who] are beginning to organize and demand relief from the government. The impending election may allow them to have a sympathetic political ear,” said Atif Kubursi, president of Econometric Research Limited.

Copyright © 2021 Key Media

0.53 acres sells for $3.05 Million located at Salisbury Avenue, Port Coquitlam

June 10th, 2021

Port Coquitlam development site on 0.53 acres sells for $3.05 million

Frontline Real State
Western Investor

Designated for residential development, and now under third reading, the 23,336-square-foot lot could accommodate nine townhouses

Property type: Development land

Location:1752-1758  Salisbury Avenue, Port Coquitlam, B.C.

Land size: 23,336 square feet

Land size in acres: 0.53 acres

Potential: 9 townhouses

Sale price: $3.05 million

Date of sale: June 1, 2021

Brokerage: Frontline Real Estate Services Ltd., Surrey, B.C.

Brokers: Mike Harrison, Adam Lawrence and Justin Mitchell.

© 2021 Western Investor

The increase demand of purpose built rentals in Vancouver City

June 3rd, 2021

Meeting the demand for rental housing

Michael Bernard
The Vancouver Sun

 Concert Properties applied master-planning principles in developing Collingwood Village, recognizing that the Skytrain line would be an important focal point for a new and long-term sustainable community. Considered the first transit-oriented master-planned community in Canada, the Joyce–Collingwood Skytrain Station is within walking distance to The Remington at Collingwood Village, pictured here. Photo by Matheson Photography /PNG

Paul Martin has been living in the same Vancouver Yaletown rental tower for 20 years and has no plans to move anytime soon.

“It works just fine for me,” said Martin, a one-time wine distributor and restaurant owner. His first move into 600 Drake was to a 307-square-foot studio suite in the 192-unit highrise built in the early 1990s by Concert Properties, a developer that continues to manage the apartments to this day. While others were scrambling to buy a starter home in Vancouver, Martin, said he was happy to take a pass on buying a place on the Monopoly board. Today he is comfortably ensconced in his one-bedroom flat. He prefers to focus on his work and hobbies. “I really would rather be sailing.”

Over the years, when friends have admonished him for not buying real estate, he stops the conversation by reminding them how much rent he pays, which is considered a bargain at well under $2,000 a month, especially for downtown Vancouver. He enjoys the freedom to pursue his business interests and leisure time without worrying about mortgages and interest rates, maintenance fees, and strata councils.

Martin is part of the 50 per cent of Vancouver residents who are tenants, some of whom live in a rapidly growing housing sector called purpose-built rentals (PBRs). Since 2017, Vancouver has set records for PBR construction, with 2021 looking like it is heading for yet another record year with more than 10,000 units underway as of March. Growth in the sector has been fuelled by record-low interest rates for developers, home prices that have rocketed beyond the reach of most average Canadians, forcing many to stay longer in rentals, and a return of government supports for rental building construction.

That government support has come none too soon, say experts. It follows decades of inaction on rental housing development as government abandoned the housing field and grappled with rising debt, recessions, and a political shift favouring private sector solutions. In 2017, however, the federal government launched its National Housing Strategy, ultimately committing more than $70 billion in funding over the next 10 years to deal with the growing unaffordability of housing across Canada.

Brian McCauley, Concert Properties CEO and president, whose company built and manages Martin’s rental highrise, sees the increase of purpose-built rentals as an expedient way of addressing Vancouver’s pressing need for affordable rental housing.

Brian McCauley, Concert Properties president and CEO. Photo by Paul Joseph /PNG 

“Over 50 per cent of residents in the City of Vancouver are renters,” said McCauley. “This is not new. The reality is that rental is in high demand and will continue to be in high demand as our population grows. As housing becomes less and less affordable, people have no other option than to rent.”

Compounding today’s problem of unaffordability are projected record immigration levels. While the pandemic put the brake on immigration in 2020, the inflow is expected to soar as COVID-19 restrictions are lifted. Indeed, to help the Canadian economy recover from the pandemic, the federal government announced its 2021-2023 Multi-Year Levels Plan last October with targets of 401,000 permanent residents in 2021, 411,000 in 2022, and 421,000 in 2023. Up to 12 per cent of those newcomers are expected to arrive in Metro Vancouver annually. Between 75 and 80 per cent of new residents typically start as renters, which translates to upwards of 39,000 new renters a year from immigration flows alone.

Historically, rental housing in British Columbia has been provided by individual entrepreneurs—sometimes called ‘Mom and Pop’ rentals—with everyone from families and small businesspeople, to professionals such as doctors and dentists, investing their money in small rental projects such as three-storey wood-frame apartments.

From the 1970s until 1992, the federal agency, Canada Mortgage and Housing Corporation (CMHC), was also developing between 12,000 and 16,000 rental units nationally each year. Then, in 1992, faced with economic uncertainties, including a recession and rising government debt, the then-Liberal government turned off the tap and CMHC pulled back from its wholesale development of rental units. With the ending of financial incentives from government, higher interest rates and the ever-rising cost of land, the construction of PBRs came to an abrupt halt.

Since then, a new source of housing has filled the gap — the individual condominium investor. The trend was reinforced by municipal governments offering developers incentives to build condos, such as permitting increased densities and higher building heights in exchange for developer contributions such as social-housing units, public art and landscaped green spaces, density and amenities. Developers, in turn, found that they could raise the initial funds through pre-construction sales, where condo buyers could put down deposits to buy units while waiting for construction. In contrast, rental developers are required to provide as much as 40 per cent of the funding prior to building a PBR.

“People realized that buying condominiums and renting them out was a good investment opportunity,” said McCauley. “The thing that has helped us have rentals through the last three decades has been the rental condominium market.”

A major drawback to condo rentals for renters, however, has been the absence of any security of tenure. With condos, an owner can at any time sell the property, evict the tenant, or raise rents high enough to prompt the tenant to leave.

 

 600 Drake is a 192-unit highrise built in the early 1990s by Concert Properties. Photo by Concert Properties /PNG

 

When Concert Properties began building PBRs in the 1990s, its unique corporate structure provided solutions to the tenure security issue. As a company owned by the pension funds administered by 19 labour unions, Concert was also tasked with a social agenda. The owners addressed the tenure issue by creating rental accommodation to assure tenants would never lose their homes because the ownership or use of the rentals or rent rates had changed. In doing so, it also created a stable and workable business model that has served as an example to other corporations. Today, the corporate sector, including other pension funds, insurance companies and Real Estate Investment Trusts (REITs) – investment vehicles popular among smaller retail investors – recognize the long-term value of PBRs as a reliable source of steady, long-term income and are lining up to enter the field.

The benefits of PBRs extend beyond the corporations that build them, say industry spokespeople, and accrue to tenants, governments, the economy and the environment. David Hutniak, chief executive officer of LandlordBC, which represents about 4,000 small, medium and large size owners, warns that B.C.’s rental stock is getting old, with the average age of rentals somewhere between 40 and 60 years. They require repairs and renewal to maintain the safety and liveability standards that new and renovated PBRs provide. Without them, Vancouver faces a shrinking PBR sector, despite growing demand for rentals.

“PBR is the most secure form of rental housing. It means that individual units will never be sold [unlike renting an investor condo] because there’s no single title,” said Hutniak. “There’s a single owner for the entire building.” Tenants also benefit from the improved liveability of new and renovated buildings and an increased supply of housing. Governments benefit from increased revenues from taxation of PBRs, and support for carbon reduction programs. The economy gains from the stimulation of construction across B.C. with increases in jobs and incomes. The environment benefits from improved building efficiency and reduced energy use, he explained.

Despite these benefits, there remain threats to the continued growth of PBRs that could create an even greater housing crisis than exists today. Jon Stovell, president and CEO of Reliance Properties, which has been building PBRs since the 1950s and now has more than 1,000 units under administration with more on the way, said he sees there are headwinds building. “I think interest rates are going to rise, construction costs are out of control, and on top of that, there is an uncertain and unpredictable regulatory environment.

“Are they going to continue to freeze rents as they have done now? Are they going to bring in vacancy controls so that as [an investor’s] unit turns over, you can’t even adjust your unit to market rents?” he asks. These decisions, as well as Vancouver City Council recently voting against REITs and other institutional investors buying rental units, threaten to discourage this type of corporate investment. “If it wasn’t for large institutional investors buying rental property, there would be no large rental projects getting built because they are very often the equity providers and the lenders for the initial high costs of these projects.”

Part Two | June 12 in Westcoast Homes: Not everyone sees corporate-built PBRs as the prime answer to Vancouver’s housing woes. A range of progressive economists, academics and industry veterans say the solutions lie in a much broader approach, including direct government involvement through the fostering of co-ops and the development of non-market rentals that will lead to more supply and lower rents. And one personal finance journalist suggests that young Canadians think twice about the Canadian dream of owning their own home.

© 2021 Vancouver Sun

GTA continue to buck down in home sales due to pandemic

June 3rd, 2021

GTA Home Sales Continue to Drop in May: TRREB Report

Penelope Graham
other

 If there’s one thing housing experts can agree on, it’s that the 2021 real estate market has been anything but typical – and the May numbers for the Greater Toronto Area continue to buck the seasonal trend, with sales sliding as we approach the summer months.

A total of 11,951 homes traded hands last month, according to the Toronto Regional Real Estate Board, down -12.5% from April, and 23.6% below March, which is now considered the peak month for this year’s activity. Sales are still up 160% from the lockdown-induced slump observed last May, but are down a bit from a long-term perspective as well, at -6.5% below the all-time record seen in May 2016.

Buyers Are Taking a Breather From Frantic Pandemic Pace

As May is usually the strongest month for sales, it’s clear the pandemic-fueled buyer urgency that has driven this year’s market is winding down, as there’s an end in sight for lockdowns in Ontario, and vaccines continue to roll out.

Another factor behind slower sales is a lack of immigration, says TRREB President Lisa Patel. “There has been strong demand for ownership housing in all parts of the GTA for both ground-oriented home types and condominium apartments. This was fueled by confidence in economic recovery and low borrowing costs,” she states in TRREB’s May release. “However, in the absence of a normal pace of population growth, we saw a pullback in sales over the past two months relative to the March peak.”

Too-Few Homes for Sale Keeps Prices at All-Time Highs

However, the GTA market continues to suffer from a deep lack of supply, which only worsened this month – a total of 18,586 listings came to market, down -10.7% from April and -18.1% from March, though up by double when compared to the same time frame in 2020. That’s kept marketing conditions steeply competitive for buyers, with a sales-to-new-listings ratio (SNLR) of 65% throughout the region. This ratio, which is calculated by dividing the number of sales by the number of new listings introduced over the month, illustrates when a market is in favour of buyers or sellers: a range between 40 – 60% indicates balanced conditions, with above and below that threshold indicating sellers’ and buyers’ markets, respectively.

“While sales have trended off the March 2021 peak, so too have new listings. This means that people actively looking to purchase a home continue to face a lot of competition from other buyers, which results in very strong upward pressure on selling prices. This competition is becoming more widespread with tighter market conditions in the condominium apartment segment as well,” stated TRREB Chief Market Analyst Jason Mercer.

These tight conditions have kept home prices at their all-time highs, at an average of $1,108,453, up 28.4% from 2020, and 1.1% from April. The MLS Composite Benchmark, which monitors market prices with the extreme highs and lows stripped out, rose 19% year over year. Homes for sale stayed on the market for an average of 11 days, unchanged from April and March.

The 905 Market Is Hotter Than the 416

As has been a trend throughout the pandemic, buyers will face the most competition in more suburban and rural markets compared to the big city, as prices – while historically high in these markets – are still lower than what’s found in the City of Toronto.

The average price for a home in the 416 hit $1,116,737 in May, a 17% year-over-year increase and up 3% from April. Sales rose 177% annually, with 4,118 transactions. This was offset by a larger influx of new listings, with 7,051 coming to market, which helped pull the city’s SNLR down to 58% from 63% in April, indicating a return to a more balanced market. The average price for a detached house hit $1,716,272 (+20.5%), while a condo in the city now costs $716,976 (+6.3%).

Annual price growth was more than doubled in the 905-area markets, up 35% at an average of $1,104,098. There were 7,833 transactions, marking a 152% increase from last May, and 11,535 new listings brought to market. However, that wasn’t enough to chill buying conditions, as the SNLR sits at 68%, up slightly from the previous month, indicating things continue to heat up in the 905, compared to a slight cooling in the 416.

For more info on how sales and prices have performed in May 2021 in the 416 and 905, check out the infographics below:

 

© 2015 – 2020 Zoocasa Realty Inc.

Commercial strata gives investors more-regulated and complicated residential condo market

June 2nd, 2021

Real Estate Investing Part 4: commercial strata in B.C.

Frank O’Brien
Western Investor

 Main Street, Vancouver, strata retail at nearly $1,000 per square foot. |Corbel Commercial

Commercial strata gives investors an edge not seen in the more-regulated and complicated residential condo market

Geographically and historically, Metro Vancouver represents perhaps the best opportunity on the planet to make money in commercial real estate. Mortgage rates are at 100-year lows and the area has among the lowest industrial and commercial vacancy rates and highest lease rates in the country.

In this fourth of a four-part Western Investor series on real estate investing, we look at the commercial and light industrial strata market, where the opportunity to invest in commercial ‘condos’ can outweigh the potential of residential stratas.

In B.C., the provincial Strata Property Act does not differentiate between the commercial and residential sectors. While this provides some certainty, it also creates challenges in older mixed-use projects where four or five commercial owners can be out voted by the much larger number of residential strata owners. In B.C., a vote of 80 per cent of strata owners can force the sale of the entire project for re-development.

Most developers set up separate strata groups for residential and commercial sections to negate this. Investors are advised to check such separation is in place in any mixed-use project.

Commercial condos offer a route for investors to share in steady lease demand and Metro Vancouver’s proven price appreciation. As well, some B.C secondary markets, most notably Victoria and Kelowna, offer commercial strata opportunities with a lower entry price but similar income and yield potential.

Commercial strata investing generally involves buying a space, leasing it out for period of time, say five years, and then selling the unit to capture the increase in real estate values.

Commercial strata offers an advantage over residential strata in that tenants normally sign longer-term leases than in residential units, the property requires less maintenance and tenants are responsible for any improvements. Also, commercial rents are not subject to BC Residential Tenancy regulations which caps annual rent increases and can restrict evictions for non-payment of rent.

In Metro Vancouver, a well-positioned retail strata can return cap rates of 3.5 per cent to 5 per cent, with grocery-anchored malls and regional shopping centres ranging from 4 per cent to 5.5 per cent.

“What you can get on the street will beat the bank,” said an agent with Macdonald Commercial, who specializes in retail property sales and leases.

Metro Vancouver’s retail vacancy rate is 2.3 per cent, about half the current national rate of 4.1 per cent.

Prices for commercial strata, such as retail or light industrial, have increased sharply in the past year. It is not uncommon to see existing Metro Vancouver commercial stratas selling for upwards of $700 per square foot, with new product demanding $1,000 or more per square foot, similar to the residential condo market.

Retail lease rates range from lows of $25 to $60 per square foot in suburban and Vancouver secondary strolls to $150 per square foot in prime downtown shopping districts, like Robson and Alberni Streets.

Commercial rents are calculated annually. For instance, if you rent your 1,000 square foot retail strata for $50 per square foot it is generating $50,000 annually, or about $4,100 per month.

It is preferable to have commercial tenants pay triple-net leases, which means the tenant pays for all maintenance and property taxes, as well as for the space. In B.C., commercial real estate values – and property taxes – can increase dramatically if the site is rezoned for high-density residential. Having a triple-net lease in place protects you as an investor.

While Metro Vancouver is the hottest area for commercial strata investors, there are also enticing opportunities in Victoria and Kelowna, where some see a ground floor opportunity for commercial investors.

In Victoria major players, including Chard Properties, Nicola Wealth, Reliance Properties and the mammoth Jim Pattison Group have been buying up entire blocks in Victoria’s Old Town, the North Douglas Street zone and Harris Green neighbourhoods for large mixed-use developments. Harris Green near downtown alone has plans for2,200 homes in an eight-block radius.

“This is like buying into Vancouver’s Yaletown two decades ago,” an agent with William Wright Commercial noted. “As people move into these areas, you are going to see explosive demand for service-type retail.”

One new Victoria retail strata project recently sold out at $607 per square foot, all to Metro Vancouver investors.

Kelowna is also seeing both an influx of new residents and rapid development, most of it concentrated downtown where the University of B.C. Okanagan is expanding its campus and a series of new residential towers are rising.

Kelowna’s retail sector has seen the vacancy rate fall to 4.3 per cent, down from 5.5 per cent a year ago.

Kelowna strata retail space is selling from around $500 per square foot and downtown lease rates range from $35 to $50 per square foot. The result is a typical capitalization rate for retail investors of from 5.5 per cent to 6 per cent, which is higher than in most of Metro Vancouver.

 

© 2021 Western Investor

Big job opportunities when new mining aiming to open

May 31st, 2021

Vanderhoof shares in B.C. mining potential

Nelson Bennett
Western Investor

About 450 full time jobs expected at just one of the new mines angling to open – if B.C.’s ‘sclerotic permitting system’ gets unclogged

Artemis Gold Blackwater site near Vanderhoof, B.C. | Artemis

About 450 full time jobs expected at just one of the new mines angling to open – if B.C.’s ‘sclerotic permitting system’ gets unclogged

Seven new mines could be built in B.C. in the coming years – an investment worth $4 billion that would generate 6,400 new construction and mining jobs.

But if the B.C. government wants those jobs, it needs to unclog its sclerotic permitting system, said Michael Goehring, president of the Mining Association of BC.

“Before any of these projects can proceed, and before the economic benefits can start flowing, they must be permitted by government,” Goehring said Wednesday in his annual address to the Greater Vancouver Board of Trade.

“I said this here two years ago and, unfortunately, I have to say it again.”

Goehring cited a couple of examples of new mines or mine expansions that are in the works. One is Artemis Gold Blackwater gold mine near Vanderhoof.

Artemis Gold bought Blackwater in August 2020 and plans to have project financing for work in the new mine by this fall. The production target is set for 2024.

“That project will boost the economy of B.C.’s central interior at a time when it desperately needs a boost,” Goehring said. “With this one mine, we’re talking 825 construction jobs for two years and up to 457 new jobs that will be created during operations.”

He added revenue sharing agreements with local First Nations would provide them with $200 million in benefits from the Blackwater mine.

Teck Resources is also planning an expansion of its Highland Valley Copper mine. The mine has only six years of life left. The expansion would extend it to 2040, Goehring said.

But B.C. risks a missed bonanza if it doesn’t fix its regulatory problems – a bonanza being driven in part by the global decarbonisation movement, which will require massive amounts of metals, like copper.

Copper prices are currently at an all-time high. And the demand for copper and dozens of other metals and minerals are expected to grow to meet the demand for new electric vehicles, batteries and renewable energy.

“Governments are making – or are poised to make – unprecedented investments in infrastructure and in clean tech,” Goering said. “And whether it’s copper for electric vehicles or metallurgical coal for the steel needed to build transit and bridges and wind turbines – we have it right here in BC.

“There is an urgency to make this happen. The time is now. This unique window of opportunity won’t be open for long.”

But high demand and prices for clean energy metals and minerals won’t necessarily translate into new mines being built in B.C. if the regulatory process is too onerous.

“Developing a new mining project in BC – or expanding an existing one – takes far too long and comes with too much uncertainty,” Goehring said. “Meanwhile increasing costs are hobbling our ability to compete in the world market.

“I simply can’t stress this enough. The permitting process in our province is too slow, too complex, and too costly.

“That said, we are encouraged and appreciative of the government’s ongoing review of the permitting process and look forward to an outcome that will lead to a permitting system that’s measured in months, not years.”

 

© 2021 Western Investor

National Bank Q2 jumps to 111% from the same period last year

May 28th, 2021

National Bank’s Q2 results are in

Fergal McAlinden
Mortgage Broker News

 National Bank became the latest Big Six bank to release its Q2 financial results this week, reporting net income of $801 million for 2021’s second quarter – a 111% increase from the same period last year.

The bank said that its growth was fuelled by strong performances across the board, with increases in total revenues among most of its business segments and a significant reduction in provisions for credit losses.

That contrasted sharply with the second quarter of 2020, when provisions for credit losses had featured heavily in the bank’s results to reflect deteriorating macroeconomic conditions because of the pandemic.

Its net income for the six-month period up to April 30 was $1,562 million, an increase from $989 million in the same period in 2020. The bank also reported first-half diluted earnings per share of $4.40, an increase from $2.68 the same time last year.

Read next: National Bank sees double-digit net income growth

Before provisions for credit losses and income taxes, the bank’s income totalled $2,083 million for the six-month period ending on April 30, 2021. That represents a sizeable 19% year-over-year increase.

Louis Vachon, National Bank’s president and chief executive officer, said that Canada’s improving economic outlook had also laid the foundations for its “strong performance” in 2021’s second quarter.

“We continue to operate in an improving economic environment more conducive to business growth, with our Q1 momentum carrying over into Q2,” he said. “Our solid results once again reflect the fact that we have made the right strategic choices and have built a strong, diversified and agile franchise.”

Vachon added that the bank’s positive numbers were a good sign ahead of a possible post-pandemic recovery in Canada.

“With an industry-leading ROE, strong capital levels and prudent allowances for credit losses, we are well-positioned to selectively seize growth opportunities as we gradually exit the pandemic,” he said.

 

 

Copyright © 2021 Key Media

0.93 acres sells for $6.53 Million located at 53rd Avenue, Langley, B.C.

May 27th, 2021

Six lot Langley land assembly sells for $6.53 million

Regent Park Realty Ltd.
Western Investor

The six single-family lots cover a total of 0.90 acres and were assembled for a potential high-density residential development.

Property type: Land assembly

Number of lots: 6

Location: 20120-20170 53rd Avenue, Langley, B.C.

Size of land: 39,385 square feet

Land size in acres: 0.90 acres

Zoning: Residential

Potential: RM3 (High-density residential to approx.. FSR1.7 or approx. 72 units)

Sale price: $6.53 million

Date of sale: April 14, 2021

Brokerage: Regent Park Realty Ltd., Vancouver

Broker: Suraj Rai

 

 

© 2021 Western Investor

2.79 acres sold for $44 Million located in North Vancouver City

May 27th, 2021

North Van industrial site closes at $15.7M per acre

WI Staff
Western Investor

Largest North Vancouver industrial deal so far in 2021, $44 million sale includes four buildings and 2.79 acres with “phenomenal redevelopment potential”

Five North Vancouver industrial buildings sold for $44 million. | CBRE

Largest North Vancouver industrial deal so far in 2021, $44 million sale includes four buildings and 2.79 acres with “phenomenal redevelopment potential”

In the largest industrial real estate transaction on the North Shore so far in 2021, a 2.79-acre site with four contiguous buildings has sold for $44 million in North Vancouver City.

The deal closed on May 26.

The sold properties are at 945, 955, 961, 967 and 971 West 1st Street and have a combined size of approximately 1110,009 square feet. All of the space is currently leased.

North Vancouver has one of the lowest industrial vacancy rates in Canada, at 0.7 per cent, according to Matt Thomas, a principal at Avison Young, who acted as the seller’s agent in the transaction.

“This property features exceptional street exposure and is in proximity to several amenities including Capilano Mall, North Shore Auto Mall, and the newly-announced North Harbour development by Concert Properties,” Thomas noted.

CBRE vice-presidents Yashar Khalighi and Lawson Chu represented the buyer in the transaction.

Khalighi said the location, the size and the zoning of the properties makes them unique on the North Shore from an investment perspective.

The properties have holding income in place with strong tenancies and are under Special Industrial (M-3) zoning, which “offers phenomenal redevelopment potential,” Khalighi said.

 “The lack of new industrial supply over the past few years has severely impacted availability and vacancy rate levels. There is currently no new proposed supply for the near term for industrial product on the North Shore,” he added.

Metro Vancouver has the highest industrial lease rates in Canada, at an average of $13.87 per square foot, and North Vancouver has become one of the priciest markets.

“Much of the available [North Vancouver] industrial product is obsolete space as it was constructed in the 1960’s, 1970’s and 1980’s and warrants redevelopment. As a result, the asking net rent rates have reached levels on average around $18.00 per square foot , depending on the quality of product. Rates have netted over $20.00 per square foot on certain small bay quality industrial properties,” Chu said.

The price per-acre in the deal, at $15.7 million, eclipses the highest per-acre priced paid for Metro Vancouver industrial property in 2020, which was the $12.1 million per acre paid by developer Wesbild for a near five-acre site in the 8100 block of Manitoba Street in Vancouver last year, according to Avison Young data.

The recent previous highest price paid for North Vancouver industrial property was the $40.1 million paid by Nicola Wealth for a 4.3-acre site on Dollarton Highway in 2020.

 

© 2021 Western Investor