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Hundreds of millions in commercial real estate deals, despite pandemic – Times Colonist

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Despite the pandemic, there were dozens of major commercial real estate deals over the past year in Greater Victoria, worth hundreds of millions of dollars.

Langford, Colwood and View Royal continued to be hotbeds for development, while the provincial government was a major buyer in its efforts to house the homeless and provide affordable housing, according to commercial realtor Dustin Miller, who compiled a list of the year’s top-10 transactions.

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Miller, managing broker for 8X Real Estate, said he compiled the list based on the value of transactions and used data from builders, B.C. Land Titles, B.C. Assessment, mortgage and tax documents and other sources.

1. 945 Reunion Ave., Langford

Price: $60 million

Site area: Air Space Title

Improvements: 156 unit multi-family apartment building

Vendor: Ledcor Property Investments, Vancouver

Purchaser: Killam Apartment REIT, Halifax

The Crossing At Belmont is the rental component of Belmont Market, a 160,000-square-foot outdoor shopping centre with anchor Thrifty Foods. The rental units have condo-like amenities and there is a rent-to-own program for tenants to save down payments to purchase across the street at the Belmont Residences strata building.

2. 2861 Craigowan Rd., View Royal

Price: $54 million

Site area: 15.8 acres of peninsula, waterfront on all sides.

Improvements: 161 units

Vendor: Realstar Group, Toronto

Purchaser: Killam REIT, Halifax

The Christie Point Apartments is a unique property on its own peninsula in Portage Inlet The waterfront property has a ­variety of low-density ­buildings originally constructed in the 1960s. Improvements call for five two-storey apartment ­buildings and four two-storey townhouse buildings.

3. 1085 Goldstream Ave., ­Langford

Price: $52.050 million

Site area: 2.157 acres

Improvements: 166 units

Vendor: Molnar Group, Vancouver

Purchaser: Skyline Wealth, Guelph, Ont.

The Star on Goldstream is a luxury rental building at ­Goldstream Avenue and Leigh Road completed in 2019. The West Shore region has been a major growth driver in the investment marketplace.

4. The Capital Iron Lands, ­Victoria

Price: $46.25 million

Site area: 6.7 acres

Improvements: Seven parcels composed of parking, retail and office.

Vendor: The Greene family (Capital Iron founders)

Purchaser: Reliance Properties, Vancouver

The sales included six properties in Victoria’s Old Town District — the Capital Iron building that runs from the foreshore, the two adjacent brick buildings, the Capital Iron Parking Lot at 1907 Store St., and the retail strip mall at 530 Chatham St. The property only contains 93,000 square feet of built leasable space, with the remainder being paved parking lots. Reliance CEO Jon Stovell has said he will work with the city in its goals for this north downtown area and plan for an Innovation District. Any project proposal will have a lengthy public consultation and municipal permitting approval process.

5. 1910 West Park Lane, View Royal

Price: $39.635 million

Site area: 2.3 acres

Improvements: 152 units

Vendor: 1138049 BC LTD Limona Properties – John Sercombe

Purchaser: Capital Regional Housing Corporation

Thetis Lake Apartments is a purpose-built rental development on the former Thetis Lake campground and trailer park with two six-storey buildings. The Capital Regional District is offering 118 of the 152 suites as affordable units, 34 units as provincial assistance units and 20 barrier-free accessible units.

6. 2251 Cadboro Bay Rd., ­Saanich

Price: $30.736 million

Site area: 3.9 acres

Improvements: 15,000-square-foot institutional health facility slated for demolition

Vendor: Island Health

Purchaser: Capital Regional Hospital District Corporation

The Oak Bay Lodge is a five-storey building constructed in 1972 and initially operated as a retirement community. In the early 1980s, it was converted to long-term care with 235 beds. The lodge closed in July when residents moved into a new 320-bed facility on Hillside Avenue. The property has been slated for demolition and a development proposal is expected in the new year for a public-use project.

7. 2850 Bryn Maur Rd., Langford

Price: $30.525 million

Site area: 0.541 acres

Improvements: 93 rental apartment units

Vendor: Bill Beadle constructed by DB Building Services, ­Victoria

Purchaser: Centurion Apartments REIT, Toronto

The Arc is a new construction rental apartment building at Bryn Maur Road and Hockley Ave. The six-storey building uses cross-laminated timber.

8. 3020 Blanshard St., Victoria

Price: $18.5 million

Site area: 120,721 square feet

Improvements: 151-room hotel

Vendor: Cornell Developments Ltd., Victoria

Purchaser: B.C. Housing The Comfort Inn & Suites was acquired in May by the province for use as shelter for 90 homeless campers. B.C. Housing partnered with Our Place to run the building.

9. 21 Gorge Rd. East, Victoria

Price: $15.77 million

Site Area: 30,247

Improvements: 52 rental units

Vendor: Greater Victoria Rental Development Society

Purchaser: Real Homes Management Corporation

The Loreen is a 2011-built affordable rental building along Gorge Road. The property is site of the former Capri Motel, which was demolished in 2009. It was originally co-owned by private developer Alanna Holroyd, Kaye Melliship and the Greater Victoria Housing Society. They have sold to another like-minded company, Real Homes Development/Real Homes Management Corp.

10. 1900 Douglas St., Victoria

Price: $14 million

Site Area: 60,005 square feet or 1.3 acres

Improvements: 75-room motel

Vendor: Paul’s Restaurants Ltd., Victoria

Purchaser: B.C. Housing

Paul’s Motor Inn was the ­second hotel acquisition in ­Victoria made by the province in response to the pandemic. It purchased the property in June for use as a homeless shelter. The long-term plan is to use the site for affordable housing.

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Here are some facts about British Columbia’s housing market

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Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.

Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.

Average residential home price in B.C.: $938,500

Average price in greater Vancouver (2024 year to date): $1,304,438

Average price in greater Victoria (2024 year to date): $979,103

Average price in the Okanagan (2024 year to date): $748,015

Average two-bedroom purpose-built rental in Vancouver: $2,181

Average two-bedroom purpose-built rental in Victoria: $1,839

Average two-bedroom purpose-built rental in Canada: $1,359

Rental vacancy rate in Vancouver: 0.9 per cent

How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent

This report by The Canadian Press was first published Oct. 17, 2024.

The Canadian Press. All rights reserved.

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B.C. voters face atmospheric river with heavy rain, high winds on election day

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VANCOUVER – Voters along the south coast of British Columbia who have not cast their ballots yet will have to contend with heavy rain and high winds from an incoming atmospheric river weather system on election day.

Environment Canada says the weather system will bring prolonged heavy rain to Metro Vancouver, the Sunshine Coast, Fraser Valley, Howe Sound, Whistler and Vancouver Island starting Friday.

The agency says strong winds with gusts up to 80 kilometres an hour will also develop on Saturday — the day thousands are expected to go to the polls across B.C. — in parts of Vancouver Island and Metro Vancouver.

Wednesday was the last day for advance voting, which started on Oct. 10.

More than 180,000 voters cast their votes Wednesday — the most ever on an advance voting day in B.C., beating the record set just days earlier on Oct. 10 of more than 170,000 votes.

Environment Canada says voters in the area of the atmospheric river can expect around 70 millimetres of precipitation generally and up to 100 millimetres along the coastal mountains, while parts of Vancouver Island could see as much as 200 millimetres of rainfall for the weekend.

An atmospheric river system in November 2021 created severe flooding and landslides that at one point severed most rail links between Vancouver’s port and the rest of Canada while inundating communities in the Fraser Valley and B.C. Interior.

This report by The Canadian Press was first published Oct. 17, 2024.

The Canadian Press. All rights reserved.

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No shortage when it comes to B.C. housing policies, as Eby, Rustad offer clear choice

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British Columbia voters face no shortage of policies when it comes to tackling the province’s housing woes in the run-up to Saturday’s election, with a clear choice for the next government’s approach.

David Eby’s New Democrats say the housing market on its own will not deliver the homes people need, while B.C. Conservative Leader John Rustad saysgovernment is part of the problem and B.C. needs to “unleash” the potential of the private sector.

But Andy Yan, director of the City Program at Simon Fraser University, said the “punchline” was that neither would have a hand in regulating interest rates, the “giant X-factor” in housing affordability.

“The one policy that controls it all just happens to be a policy that the province, whoever wins, has absolutely no control over,” said Yan, who made a name for himself scrutinizing B.C.’s chronic affordability problems.

Some metrics have shown those problems easing, with Eby pointing to what he said was a seven per cent drop in rent prices in Vancouver.

But Statistics Canada says 2021 census data shows that 25.5 per cent of B.C. households were paying at least 30 per cent of their income on shelter costs, the worst for any province or territory.

Yan said government had “access to a few levers” aimed at boosting housing affordability, and Eby has been pulling several.

Yet a host of other factors are at play, rates in particular, Yan said.

“This is what makes housing so frustrating, right? It takes time. It takes decades through which solutions and policies play out,” Yan said.

Rustad, meanwhile, is running on a “deregulation” platform.

He has pledged to scrap key NDP housing initiatives, including the speculation and vacancy tax, restrictions on short-term rentals,and legislation aimed at boosting small-scale density in single-family neighbourhoods.

Green Leader Sonia Furstenau, meanwhile, says “commodification” of housing by large investors is a major factor driving up costs, and her party would prioritize people most vulnerable in the housing market.

Yan said it was too soon to fully assess the impact of the NDP government’s housing measures, but there was a risk housing challenges could get worse if certain safeguards were removed, such as policies that preserve existing rental homes.

If interest rates were to drop, spurring a surge of redevelopment, Yan said the new homes with higher rents could wipe the older, cheaper units off the map.

“There is this element of change and redevelopment that needs to occur as a city grows, yet the loss of that stock is part of really, the ongoing challenges,” Yan said.

Given the external forces buffeting the housing market, Yan said the question before voters this month was more about “narrative” than numbers.

“Who do you believe will deliver a better tomorrow?”

Yan said the market has limits, and governments play an important role in providing safeguards for those most vulnerable.

The market “won’t by itself deal with their housing needs,” Yan said, especially given what he described as B.C.’s “30-year deficit of non-market housing.”

IS HOUSING THE ‘GOVERNMENT’S JOB’?

Craig Jones, associate director of the Housing Research Collaborative at the University of British Columbia, echoed Yan, saying people are in “housing distress” and in urgent need of help in the form of social or non-market housing.

“The amount of housing that it’s going to take through straight-up supply to arrive at affordability, it’s more than the system can actually produce,” he said.

Among the three leaders, Yan said it was Furstenau who had focused on the role of the “financialization” of housing, or large investors using housing for profit.

“It really squeezes renters,” he said of the trend. “It captures those units that would ordinarily become affordable and moves (them) into an investment product.”

The Greens’ platform includes a pledge to advocate for federal legislation banning the sale of residential units toreal estate investment trusts, known as REITs.

The party has also proposed a two per cent tax on homes valued at $3 million or higher, while committing $1.5 billion to build 26,000 non-market units each year.

Eby’s NDP government has enacted a suite of policies aimed at speeding up the development and availability of middle-income housing and affordable rentals.

They include the Rental Protection Fund, which Jones described as a “cutting-edge” policy. The $500-million fund enables non-profit organizations to purchase and manage existing rental buildings with the goal of preserving their affordability.

Another flagship NDP housing initiative, dubbed BC Builds, uses $2 billion in government financingto offer low-interest loans for the development of rental buildings on low-cost, underutilized land. Under the program, operators must offer at least 20 per cent of their units at 20 per cent below the market value.

Ravi Kahlon, the NDP candidate for Delta North who serves as Eby’s housing minister,said BC Builds was designed to navigate “huge headwinds” in housing development, including high interest rates, global inflation and the cost of land.

Boosting supply is one piece of the larger housing puzzle, Kahlon said in an interview before the start of the election campaign.

“We also need governments to invest and … come up with innovative programs to be able to get more affordability than the market can deliver,” he said.

The NDP is also pledging to help more middle-class, first-time buyers into the housing market with a plan to finance 40 per cent of the price on certain projects, with the money repayable as a loan and carrying an interest rate of 1.5 per cent. The government’s contribution would have to be repaid upon resale, plus 40 per cent of any increase in value.

The Canadian Press reached out several times requesting a housing-focused interview with Rustad or another Conservative representative, but received no followup.

At a press conference officially launching the Conservatives’ campaign, Rustad said Eby “seems to think that (housing) is government’s job.”

A key element of the Conservatives’ housing plans is a provincial tax exemption dubbed the “Rustad Rebate.” It would start in 2026 with residents able to deduct up to $1,500 per month for rent and mortgage costs, increasing to $3,000 in 2029.

Rustad also wants Ottawa to reintroduce a 1970s federal program that offered tax incentives to spur multi-unit residential building construction.

“It’s critical to bring that back and get the rental stock that we need built,” Rustad said of the so-called MURB program during the recent televised leaders’ debate.

Rustad also wants to axe B.C.’s speculation and vacancy tax, which Eby says has added 20,000 units to the long-term rental market, and repeal rules restricting short-term rentals on platforms such as Airbnb and Vrbo to an operator’s principal residence or one secondary suite.

“(First) of all it was foreigners, and then it was speculators, and then it was vacant properties, and then it was Airbnbs, instead of pointing at the real problem, which is government, and government is getting in the way,” Rustad said during the televised leaders’ debate.

Rustad has also promised to speed up approvals for rezoning and development applications, and to step in if a city fails to meet the six-month target.

Eby’s approach to clearing zoning and regulatory hurdles includes legislation passed last fall that requires municipalities with more than 5,000 residents to allow small-scale, multi-unit housing on lots previously zoned for single family homes.

The New Democrats have also recently announced a series of free, standardized building designs and a plan to fast-track prefabricated homes in the province.

A statement from B.C.’s Housing Ministry said more than 90 per cent of 188 local governments had adopted the New Democrats’ small-scale, multi-unit housing legislation as of last month, while 21 had received extensions allowing more time.

Rustad has pledged to repeal that law too, describing Eby’s approach as “authoritarian.”

The Greens are meanwhile pledging to spend $650 million in annual infrastructure funding for communities, increase subsidies for elderly renters, and bring in vacancy control measures to prevent landlords from drastically raising rents for new tenants.

Yan likened the Oct. 19 election to a “referendum about the course that David Eby has set” for housing, with Rustad “offering a completely different direction.”

Regardless of which party and leader emerges victorious, Yan said B.C.’s next government will be working against the clock, as well as cost pressures.

Yan said failing to deliver affordable homes for everyone, particularly people living on B.C. streets and young, working families, came at a cost to the whole province.

“It diminishes us as a society, but then also as an economy.”

This report by The Canadian Press was first published Oct. 17, 2024.

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