Latest Activity Report

This past week saw two pending sales, one closed and one new listing in Vancouver’s urban condo market.  That is a nice contrast to the +11 inventory that I reported last Monday.

Take note that the data on Vancouver’s urban market can have wild swings due as much to the smaller total inventory as actual market activity. The total inventory including all units for sale or not is only about a thousand so the data pool is pretty small. In general inventory for urban style condos is trending tight.

I have no real news about upcoming developments as the city agencies and most construction is on a COVID-19 pause. I would imagine that the new Kirkland Tower project will experience a delayed opening due tot he shut down, but hopefully the units will still be ready by this time next year or earlier. Kirkland Tower will feature 40 luxury units right on the water and will tap into the hotel services for homeowners. This is a unique arrangement here in Vancouver, although it is not a novel idea.

If we can get the virus locked down in the next 30 days and start to ease back into positive economic growth, we should see a robust return to prosperity. One local developer seems to be optimistic as the Columbian reported earlier today that Ryan Hurley and Ten Talents construction submitted a pre-app to the city for a companion office tower to the Hurley Tower completed earlier this year. Let’s hope this virus pandemic ends soon.

Latest Buzz

Kirkland Tower is getting close to topping out. They are under a bit of a crunch as the FAA height restriction variance for the 250 foot tower crane expires this month. They are working on completing the 11 story super structure, I’d imagine the 12th floor rooftop penthouse and patio won’t need the tower crane. It looks like they have 9 floors built up and as of yesterday were working on the tenth floor. Kirkland Tower will have super premium condos, that take full advantage of the waterfront location and the amenities of the attached 8 story Hotel Indigo that topped out last month.

Last week’s CCRA meeting had updates for the City of Vancouver’s vision for the waterfront gateway area south of city hall and north of the BNSF Railway. I’m awaiting the release of any new information on this new development zone.

Last month the CCRA got a preview of the updated Holland Partner Group proposal for Block Ten which was met with mostly favorable response. That updated plan will be presented at the city pre-application conference this week. Hopefully some additional details will become available. This project is supposed to break ground this year to take advantage of expiring incentives. It will include a 4 story office building on top of ground level retail and two floors of parking. Also a residential tower with five floors of apartments stacked over mixed use ground level and again 2 floors of parking. It will be nice to have that long empty block built up with an enduring project.

I noticed that construction fencing has gone up around Block 20 on the waterfront. Also construction fencing went up around Block 19 but I suspect that Block 19 will serve as a staging lot for the fairly large project on Block 20. On Saturday there was equipment and supplies being unloaded on both lots.

This will be a 7 story apartment building with a similar size and scope of Riverwest on Block 8. Unlike Riverwest, this project is not expected to have a mixed use element and should be all residential. Jackson Square Properties out of San Francisco is the developer and they must be close to getting permits. The City of Vancouver project site still has it “under review” but I think they are probably already approved or very near approval.

I also noticed construction fencing has been in place for quite awhile around the Library Square property owned by Killian Pacific, but no activity appears to happening. This is a really important block and I feel like we need to get moving on it. Killian already got postponed a decade after the ‘Great Recession’ hit in 2008, another economic slowdown could cause more delays in the future. Why not get going now while real estate investment money is flowing like the Columbia River in springtime!

Marathon unveiled their phase two proposal for the Academy despite any actual activity at phase one. I think this also could be indicative of them feeling close to approval for permits on Aegis phase one. I like the Aegis project and would love to see them start on it before the end of the year.

Cascadia Development Partners is fast at work on the Aria. This is a 6 story apartment and townhouse residential building going up on West 6th just west of Esther Short Park almost ‘catty corner’ from City Hall.

Cascadia did the Uptown Apartments on Main Street and West McLoughlin. They did a fantastic job on that project. It opened in 2018 and they managed to get the building quickly leased. They were not as successful on the retail part, but they still got that building sold a year after it opened for a tidy profit. The building cost $45 million to build and opened in January 2018, it sold in May of this year for $57 million. The investors should be happy with their performance on that project. I think the Aria will be even better. The construction costs will be substantially lower (Estimated at $26 million) since it is a more simple approach, with a much easier excavation. The location is amazing. Cascadia should hit a home run with this project.

I’m hoping we will hear more from Cascadia about the full city block bounded by Main Street, West 15th, Washington Street, and West 16th. They have had a large development sign up with a leasing info contact, and some press reports about having something lined up for that block. That is an important block as it is visible to everyone visiting Downtown that uses the Mill Plain off ramp. I hate dead blocks!

Prestige Development is very close to opening the Our Heroes apartment buildings on East 13th at E Street. They have the clock/temp digital sign working on the top of the North Tower (Ed Tower).

The Columbian reported about two new ‘restaurants’ opening Downtown. A ‘Country Bar’ called “Six Shooter” should keep our ‘urban cowboys’ entertained and a Georgian restaurant called “Dediko” add to the expanding diversity of food and drink in our urban core.

The urban condo scene was business as usual with no new inventory but one unit returned to market after being pending for a couple of weeks and a few price changes and closings as well.