Haro Court, an 18-unit apartment building located in the West End of Vancouver has sold for $4,350,000, representing $242,000 per unit and a 3.0% cap rate. The building had been listed for sale for $4,400,000.

Values for apartment buildings in East Vancouver have grown steadily over the past 10 years and have generally tracked rents in its upward trajectory. The supply of rental units in this market is limited to new condos in areas such as Main and Fraser Street. Transaction activity has been fairly limited in this market with few sellers; however, a number of buildings have been acquired by investors looking to take advantage of rising rents, particularly in trendy areas near Main Street and Commercial Drive.

This market is predominantly characterized by low-rise buildings and complexes over 40-years of age. The average sales value over the past five years in this market is about $145,000.

East Vancouver has traditionally been considered an affordable option to renters relative to the Westside or West End; this is evident in rents which are on average approx. 15% lower. According to CMHC, the average one-bedroom rents for $915 in Mount Pleasant/Renfrew Heights, and $845 in the East Hastings Area.

Much of the transaction activity taking place in East Vancouver over the past few years have been of older apartment product that has been renovated and reintroduced to the market at higher rental rates. Average cap rates have hovered in the 4.0% to 5.0% range, with lower cap rates for older buildings with upside potential.

According to CMHC, vacancy rates for apartments are generally around 1.0%; which will continue to be tight amid little new rental supply. Investors will continue to look to East Vancouver for buildings with upside as well as those properties which are well-positioned for future growth and rent increases.

Highrises proposed for Lynn Valley.

Neighbours are being asked to comment on two preliminary development proposals that would see three new highrise towers built in the centre of Lynn Valley.

If approved, the construction of the residential towers would begin transforming the heart of the community into the commercial and residential hub envisioned through about 15 years of planning.

The two projects – both in the “pre-application” stage, according to Bydwell – are being put forward by Safeway and Bosa, the corporate owner of the Zellers property.