A 23-unit retail/apartment building in the Collingwood area of East Vancouver has sold for $6,825,000, or $296,700 per unit. The cap rate was 4.0%. The building is about 10 years old and has 4 retail CRU’s on the ground floor and 19 apartment units above. The building was listed for sale for $6,980,000.

Coquitlam multifamily assets have shown a steady increase in value over the past 5 years as cap rates for apartment buildings have dropped across the region. This market is predominantly characterized by low-rise buildings. The average sales value over the past five years in this market is about $125,000, a value range that is consistent with areas such as East Vancouver and New Westminster.

Ted Mildon & Matt Saunders are proud to announce the sale of 243 East 13th Avenue in Mount Pleasant.  243 East 13th Avenue is an 11 unit, three storey, apartment building with underground parking.  The sale price was $1.8 million.

For more information on this sale please contact Ted Mildon or Matt Saunders.

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.