An apartment building located at East 44th Avenue and Fraser Street in East Vancouver has sold. The 18-unit building sold for $3,220,000, or $179,000 per unit. The cap rate on the transaction was 3.2% and the marketing materials suggested there is the possibility to raise rents substantially.

CMHC has just released their 2012 rental market report for Vancouver. Some highlights:

• „The average vacancy rate rose to 1.8 per cent in October 2012 from 1.4
  per cent in October 2011.
• „„The average rent increase for two-bedroom  apartments between October 2011 and October 2012 was 2.3 per cent. The general rate of inflation for this period was 0.7 per cent.
• Areas close to Vancouver City, such as Richmond, North Vancouver, and West Vancouver, reported similar low vacancy of around 1%. In contrast, Coquitlam, Port Moody, and Port Coquitlam, where home prices are relatively lower, recorded average vacancy rates of 3.2 per cent.
• A supply increase of 3,724 rental condominium apartment units helped to keep the rate of rent increase contained.
• The Vancouver rental market is forecast to remain stable next year with vacancy rates expected to remain below 2.0%.

CMHC 2012 Vacancy Rates

CMHC Average RentsSource: CMHC

Source: CMHC

Courtesy CBC

Ian Gragtmans of Colliers Toronto joins Kevin O’Leary and Amanda Lang on CBC to discuss REITs.

View the discussion HERE.

A 14-unit apartment building in the Kitsilano area of Vancouver has sold for $2,990,000, or $214,000 per unit and a cap rate estimated to be approximately 4.25%. The Afton Apartments is located at 2045 Maple Street, at the corner of 5th and Maple. The purchaser is Headwater Projects a local private equity firm.

Orr Development has applied to rezone 3002-3036 West Broadway from C-2C to CD-1 to build a 5-storey, 83-unit market rental building, with a total density of 3.5 FSR, and a height of 61 feet. A total of 26 commercial and 63 residential parking stalls are proposed. The site is 20,889 SF. Under the existing C-2C guidelines, the maximum height is 4-storeys with setbacks.

The project includes 16,000 SF of commercial space on the ground floor and includes 19 studios, 41 one-bedrooms, 19 two-bedrooms, and 4 three-bedrooms.

The rezoning application is being considered under the Rental 100: Secured Market Rental Housing Policy.