Darwin Construction is proposing a 5-storey building, inclusive of 9,160 SF of retail at grade with residential above at 745 Marine Drive in North Vancouver, currently home to a Kia dealership. The residential may be rental or strata, or a mix of both. The total density proposed is 2.3 FSR. The Kia dealership would then be relocated as part of the proposal to 843-855 West 1st Street in a brand new dealership building.

Valuations are getting so high in Vancouver’s commercial market it is starting to affect deal flow, says a new report.

RealNet Canada Inc. says capitalization rates — the implied rate of return on a property — in British Columbia have gone so low that a 13% decline in sales in the first quarter can be attributed to the drop. The lower the cap rate, the more a property is worth.

“Transaction volumes experienced declines as the general market adjusts to changing value expectations in a record low cap rate environment,” said Paul Richter, director of research with RealNet, in the report. “Investment activity experienced a decline, however, demand for quality assets and development sites remains high.”

RealNet said there was 217 transactions of more than $1-million in the Vancouver market in the first quarter which amounted to $1.06-billion in activity. That was sharply down from the more than $1.2-billion in activity in the fourth quarter of 2012 but still 10% above the long-term quarterly average.

Construction on Telus’ new Downtown Vancouver headquarters is now progressing above ground. The 22-storey complex is scheduled to be complete in early 2015.

Telus Office Tower Construction

All photos courtesy of Built Form on SSP.

The Edgemont Senior Living project in North Vancouver will go to council for first reading next week. The proposal is for a 125-unit, 3-storey building on a site that currently consists of six single family lots. The units will be primarily independent living, with some assisted living units. The developer is proposing to pay a CAC of $500,000, which is estimated to be 50% of the increase in land value through rezoning. More information can be found here.