Rental Building Cambie Corridor

[unicas]

Just read this on the Goodman report. preselling this 5 storey rental building. rentable area of about 50K sqft on 21k sqft land, for just under 26 million. it takes land assembly of 3-4 single family home which were sold for around 3.5 million each a few months back, lets say building cost of $150 per sqft, soft and hard combined, that would make the total costs of around 18-19 million, way to go to make cool 7 million.

We know owners of those old timers along Cambie made a killing of the sales. We know the agent Danny Deng lost track of how much he made in the Cambe area alone, would be interesting to know who is the taker of the final products.

This is Vancouver. We are special

[semven]

I think Intracorp is dialling something in on Cambie. 66th maybe?

[vanpro]

Unicas: your costs estimate is way too low. BDC generalized hard costs for luxury, "high quality" (which this bldg is) woodframe building is $148.50/sqft plus you need to add the efficiency factor/loss of 13% for hallways and other non rentable sqft (see listing info that indicates "87% efficiency"). Soft costs are usually 35% of hard costs, so that would be an additional $52/sqft plus land that you estimate was about $12M-$14M (which BTW is exhorbitant at $240-$280/buildable sqft.). So hard and soft = approx. $11.25M plus land at $12M-$14M = total costs of b/w $23.25M to $25.25M, so it's tight. This is a prime example of condo market stalling so developers are trying to sell as rental building to recoup costs plus minor profit so as not to loose their shirts....Mainly due to huge spec price paid for the land....

Note: see BDC web site for hard costs:

"Framed Apartment, With Below Ground Concrete Parking Structure, Up to 1000 s.f.
High Quality, in Vancouver - West Side
Estimated Cost per Square Foot: $148.50 (CDN)

The above represents the expected on site construction costs in a normal, competitive environment.
Areas are based on above ground, gross floor, calculations.
Costs should be adjusted for site specific conditions. "

http://www.bdconsultants.com/tools/costindex

[tdma800]

Just read this on the Goodman report. preselling this 5 storey rental building. rentable area of about 50K sqft on 21k sqft land, for just under 26 million. it takes land assembly of 3-4 single family home which were sold for around 3.5 million each a few months back, lets say building cost of $150 per sqft, soft and hard combined, that would make the total costs of around 18-19 million, way to go to make cool 7 million.

We know owners of those old timers along Cambie made a killing of the sales. We know the agent Danny Deng lost track of how much he made in the Cambe area alone, would be interesting to know who is the taker of the final products.

This is Vancouver. We are special

Danny Deng? lol

[red_lantern]

MAny of those houses sold for 4 million, making the sellers instant millionaires who purchased condos and now now trying to sell them but ultimately finding out that the market has stalled and they have to reduce their prices in order to sell (word on the street). Look at a few of the 1 bedroom units at 728 West 8th the new Westbank Development for instance. Many original buyers trying to sell and not finding any buyers willing to pay the price which will ultimately have to be reduced (just wait and see).
So the market has turned and if the developer puts up a luxury condo they won't sell at luxury prices in this market, not today anyway. Therefore, it may be the builder's best alternative to turn them all into rentals for now or sell their condo at a competitive price and not "luxury".

[unicas]

by red_lantern » Fri Jun 08, 2012 11:35 pm

Look at a few of the 1 bedroom units at 728 West 8th the new Westbank Development for instance. Many original buyers trying to sell and not finding any buyers willing to pay the price which will ultimately have to be reduced (just wait and see)
.

Friend of mine bought a 2br there and invited me to take a look before she rented it. A few observations

1) It is about 900 sqft on higher level. The view is decent, but not spectacular. Good city view, with slight water view. but you do need to look across roof of those old low rises. My friend who also owns condos in Shanghai near the Bund, said view is better here during day time becuase air is clear here. but at night, view from her condo looking across the Bund is unbeatable.

2) Parking is tiny. The entrance to the parking lot is awkwardly designed. You need to make a few swift moves to get in. I can imagine what make happen at rush hour.

3) 900 sqft is not small. but the both bedrooms are not much larger than a locker. both bathrooms are about the same size as bedrooms. interesting design

4) the kitchen island is huge for suite of that size, taking almost half of the space of the living room

5) it just averaged out to be $900 per sqft after taking account of tax and PTT, it is very expensive and it is not coal harbour

6) I am very surprised she can rent it for over 3k a month, actually cashflows

[gse36]

5) it just averaged out to be $900 per sqft after taking account of tax and PTT, it is very expensive and it is not coal harbour

6) I am very surprised she can rent it for over 3k a month, actually cashflows

Thanks for sharing this information. $900/sq @ 900sq = $810k.

I suppose question is whether it cashflows to yield a decent return. b/c with 25% down, it looks like carrying costs are $3037.5 for mortgage + tax+maintenance fee. Porbably closer to $3700 or so.

I see unit 804 sold $975k for 1200sq back in april with view. = $812.5/sq.
702 sold $586k for 803 sq = $730/sq
604 asking $969k with view 1211sq. Probably can get for less since its been on market since April.
603 asking $998k with view 1309sq ft (2 parkings)

It looks like your friend is probably losing money on the unit (by at least $100k), so wants to rent out to hopefully make up the loss. I

[jesse1]

$810K 3K/mo caps at about 4%. I'll stick to my REITs thanks

[unicas]

gse36 » Mon Jun 18, 2012 7:07 am

Thanks for sharing this information. $900/sq @ 900sq = $810k.

I suppose question is whether it cashflows to yield a decent return. b/c with 25% down, it looks like carrying costs are $3037.5 for mortgage + tax+maintenance fee. Porbably closer to $3700 or so.

I see unit 804 sold $975k for 1200sq back in april with view. = $812.5/sq.
702 sold $586k for 803 sq = $730/sq
604 asking $969k with view 1211sq. Probably can get for less since its been on market since April.
603 asking $998k with view 1309sq ft (2 parkings)

It looks like your friend is probably losing money on the unit (by at least $100k), so wants to rent out to hopefully make up the loss. I

gse36, I dont disagree with you. And I felt she was extremely lucky to get this tenant. She is under the impression that if she sells today, she will make a little bit of money. She told me there are 12 units on sale from that building, the ones sold averaged over 800/sqft. howerver, the one sold faces east, while her unit faces west, with the view the bridge and some water. so should get much higer price.

[timber2012]

Is a bridge view something that is desirable?