69-year-old rental suites sold for $750,000 each
Multi-family prices in Vancouver redefine “stratospheric”
Frank O'Brien Western Investor
We continue to pioneer pricing to new heights in this ever skyrocketing market. Many of our Buyers have been aggressively bidding on properties that come on the market but have been losing out to a multiple offer scenario. Once they reach a certain level of frustration there comes a point that they will go above and beyond to secure the next available investment. The Western Investor has published this sale as one of their headlines for recent deals of the month.
A 69-year old, wood frame rental apartment building in Vancouver has sold for a mind-bending $4.5 million, or $750,000 for each of the six units in the West 6th Avenue project where rents average $1,680 per month.
The price is an indication of the stratospheric prices being seen in Vancouver’s multi-family sector, where sales volume soared 47 per cent in the past year to north of $1.1 billion.
The Kitsilano building sold, after multiple offers, for $50,000 above the list price. The capitalization rate is 2.1 per cent.
NAI Commercial’s team in Vancouver, which includes senior vice-president Terry Harding, vice-president Jackson Tang and agent Brandon Harding*, sold the project.
The property was assessed in July 2015 for $2.9 million, with the value of the building at $199,000; the land at $2.7 million.
From: NAI Commercial, Vancouver. NAI senior vice-president Terry Harding, vice-president Jackson Tang and agent Brandon Harding* report the following sales:
DEAL: Eight-unit rental apartment building on Alma Street, Vancouver,
Price: $3.65 million.
DEAL: 11-unit rental apartment building, West 12th Avenue, Vancouver. Price: $4.35 million
DEAL: 61-unit rental apartment building, Fifth Avenue, New Westminster. Price: $8.9 million.