Park Strand Apartments, located at 1999 Nelson Street, a 50-unit walkup apartment building in the West End of Vancouver has sold for $14,925,000, or $298,500 per unit. The building was built in 1951 and was purchased by a private local investor. The net operating income at the time of sale was projected to be $496,000, representing a 3.3% cap rate. The property had been listed for sale; click here for a brochure.
Values for apartment buildings in Surrey have grown steadily over the past 10 years, a trend expected to continue with new supply of rental units generally limited to new condo projects. More affordable rental units tend to be limited to older rental stock.
This market is predominantly characterized by low-rise buildings and complexes over 20-years of age. The average sales value over the past five years in this market is just over $100,000 per unit.
With a limited stock of apartment buildings per capita relative to other municipalities such as Vancouver and New Westminster, investment activity in this market has been relatively confined to less than a dozen transactions each year. Cap rates have fallen steadily as well, to average just over 6.0% currently.
The prospects for this market are generally positive, with new supply limited to areas of residential development such as Surrey City Centre. According to CMHC, vacancy rates for apartments are approximately 3.7%; this is higher than the Metro Vancouver average, but still in healthy territory. Average rents range from $610 for bachelors, up to $982 for 3-bedroom units. CMHC estimates that there are over 29,000 condos in the Fraser Valley, of which approximately 21% are rented at rates averaging 10-20% higher than purpose built rental.
A 14-unit three-storey walkup apartment building in Kits has sold for $4,800,000, or a 3.1% cap rate ($343,000 per unit). The building, located at 2250 York Avenue contains one and two bedroom units and had been listed for sale for $5,600,000. The property is zoned RM-4.
David Taylor and Simon Lim of Colliers are pleased to present for sale 2116 West 41st Avenue, a 2-storey retail and apartment building located in the heart of Kerrisdale.
Key Features
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Located mid-block on the south side of West 10th Avenue, this three storey, 11 suite apartment building is well positioned in the Fairview neighbourhood. Built in 1958, the Shavian Apartments had been owned by the Shavian family since construction.
The property was sold by Ted Mildon and Matt Saunders in June 2012.