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Sunrise Development has stepped forward in Richmond with another big land deal (land is a collector's item, they aren't making any more of it), this one located a block away from their Quintet mixed-use development that's currently under construction (pictured).  RealNet's Ryan Wyse points to the location as the reason behind the $69M price tag—on the City Centre of Richmond, by the Skytrain, near the airport. The parcel of land is almost five acres at 5333 & 5411 No. 2 Road and 7960 Alderbridge Way (rendered). Sunrise is a subsidiary of UEM Sunrise Berhad, the development firm out of Asia.  In the image is a rendering of Quintet. Tony Kwan, speaking on behalf of Sunrise, tells us the company has no immediate plans for the property, since the deal just closed late last week. “It was purchased with a view for potential future development,” he says. ("It is so fine and yet so terrible to stand in front of a blank canvas." -Paul Cezanne... or Swedish Chef from the Muppets, we can't remember.) |
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Upward Momentum For Multifamily Avison Young's Rob Greer sees potential for new growth in investment in multifamily in BC going forward, despite an AY report showing few quality assets available in the second half of 2013, and little deal activity. In fact, if it wasn't for a portfolio sale involving the Norgal apartment portfolio in the second half of 2013 for $51M—and the sale of 119 rental units involving the former housing development for Olympic athletes for $41.5M (there might even be a couple of bronze medals sitting around—there would have been a limited number of deals above $5M (AY tracks multifamily investments greater than $5M). Overall, there were 16 deals completed at a value of $234M during the second half of 2013.  Rob points to high land costs since the early 1970s across Metro Vancouver as the main culprit, compared with the rest of Canada. “The only way the numbers could work was for residential developers to build condominiums,” he says. Look for that to change, with the city's recent move to create a rental construction incentive program increasing density and removing certain municipal fees tied to new rental construction. (Though let's hope that's the only way we start emulating the early '70s.)  In the image is Dorchester in North Vancouver, which sold for $12M in November. “The numbers are still tight, but it is helping new rental projects move forward,” he says. CMHC points to the number of new purpose-built rental apartments completed during the first half of 2013 (1,047 units), the highest level in 10 years, as a sign of things to come. The impact on vacancy levels with the new product will be mitigated by pick-up in employment, Rob says. According to the report, the vacancy rate is expected to rise to 2.2% in 2014 (2.1% in 2013). Rob says multifamily is of particular interest to institutional investors because those assets supply slow, but steady rental rate growth—a nice, conservative complement to other assets in a diversified portfolio. |
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DTZ Beefs Up Retail Team |
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 Sean Ogilvie, DTZ's new VP retail, says he's looking forward to being part of the senior broker group, who help the company's managing partners shape growth, via the platforms they offer clients. That's a new role for the 17-year industry vet, who moved over from Colliers, where he developed particular expertise in tenant representation and investment properties. “This is a smaller group that is growing and I want to be part of that growth,” he says. |
 In the image is a retail sale he was just involved in—32915 S Fraser Way in Abbotsford. Before his career in real estate, he tells us he developed a passion for commercial real estate working in management for a national electronics retailer, and it was where he gained insight into what retailers look for when choosing where they want to be. In particular, lately, he's been responsible for helping landlords assess current tenant mixes. “Tenant turnover is expensive,” he says. (For everyone except companies who make boxes.) Colliers VP Doug Le Patourel is his biggest mentor. “I always appreciated his dedication, his ‘work hard, play hard' mentality,” he says.
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We Want You!We're looking for the Bisnow face of Canada (and it doesn't have to be as beautiful as Ryan Gosling's or Rachel McAdams'). We're in need of a Vancouver/Toronto commercial real estate reporter, with a strong journalism background and a passion for writing. You have the gift for delivering groundbreaking real estate news in our breezy but super-informative manner. You live to break stories, work a beat, travel, uncover market trends and rub elbows with the most powerful people in the industry. Send your journalism-oriented resume to: matt.black@bisnow.com |
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