Downtown Vancouver Updates II

[GenWhy?]

Originally Posted by whatnext

Does the design come with the sale? If an experienced developer like Wall doesn't think they can make money why would anyone else make the leap?

It looks like the rezoning was approved, but I don't think it's been formally enacted yet.

[whatnext]

Originally Posted by GenWhy?

It looks like the rezoning was approved, but I don't think it's been formally enacted yet.

So if Wall is selling the site does the approval go with the building site or is it attached to the current owner?

[Changing City]

Originally Posted by whatnext

So if Wall is selling the site does the approval go with the building site or is it attached to the current owner?

Once it's enacted, a rezoning changes the zoning of the site to a CD-1 zone. The ownership is irrelevant. If the rezoning hasn't been enacted, the zoning doesn't change.

The developer was proposing 20% of the units at below market rents, and had applied for a DCL waiver, which means they had to agree to a limit on the rents they would charge for the market units. They also had to allow the 24 tenants who were in the existing building on the site to return to the new building at the same rent. Those would be conditions for enactment.

Wall has developed strata buildings, where they've paid a CAC to rezone to a taller building, and then rent it. That allows them to charge whatever rent the market will bear, with no restrictions, and the building can be sold as condos in future, should they choose to do so. They're going to go that route on the building project they acquired on Hornby.

[whatnext]

Originally Posted by Changing City

Once it's enacted, a rezoning changes the zoning of the site to a CD-1 zone. The ownership is irrelevant. If the rezoning hasn't been enacted, the zoning doesn't change.

The developer was proposing 20% of the units at below market rents, and had applied for a DCL waiver, which means they had to agree to a limit on the rents they would charge for the market units. They also had to allow the 24 tenants who were in the existing building on the site to return to the new building at the same rent. Those would be conditions for enactment.

Wall has developed strata buildings, where they've paid a CAC to rezone to a taller building, and then rent it. That allows them to charge whatever rent the market will bear, with no restrictions, and the building can be sold as condos in future, should they choose to do so. They're going to go that route on the building project they acquired on Hornby.

OK, I was confused as Storeys describes the listing: "However, the property was recently listed for sale, without an asking price, by Simon Lim, James Lang, and Jessica Hathaway of Colliers, who note that the rezoning approval "mitigates permitting risk on the site and provides immense time savings for construction start." but as you say that only holds true if they proceed with the same rental mix and conditions.

As I said, if an experienced player like Wall doesn't think that mix will work then one assume any prospective buyer will start from scratch. Kind of weird they're offloading a site they only bought last year and bothered to go through a lot of design work for. What's changed I wonder.

[GenWhy?]

Originally Posted by whatnext

As I said, if an experienced player like Wall doesn't think that mix will work then one assume any prospective buyer will start from scratch. Kind of weird they're offloading a site they only bought last year and bothered to go through a lot of design work for. What's changed I wonder.

Them selling it doesn't mean they think the math doesn't work, necessarily.

Seeing how the development wasn't necessarily conforming and (if I remember) really took the green light from Council, I don't think someone would be super jazzed to start a new rezoning and toss this one as the Conditions would likely be 100% the same, or more intense, as time goes by.

[officedweller]

It might be more an indication that Wall Financial doesn't want to extend itself financially to build the project.
What else have they got on the go?

[jollyburger]

Originally Posted by officedweller

It might be more an indication that Wall Financial doesn't want to extend itself financially to build the project.
What else have they got on the go?

They have a bunch of Broadway Plan projects.

Ans 1290 Hornby

A 15,000 sq.ft. development site currently improved with a 30,000 sq.ft. commercial office building. The City of Vancouver is processing a rezoning application for a 35 storey tower of approximately 179,000 sq.ft. and 211 units. Current strategy is to complete the tower by 2025 and retain it as a long-term income producing asset.

https://www.wallfinancialcorporation...o/hornby-drake

They just applied for the salvage/demo permits in April for Hornby.

[officedweller]

If they were to sell a project to raise funds, this one is probably the most unique (versus one of many in the Broadway corridor) and maybe the most likely to sell.

[whatnext]

Four more West End condo projects on hold.

1450 W Georgia Street
1157 Burrard Street
1640-1650 Alberni Street
1668-1684 Alberni Street

Four Vancouver High-Rise Projects Set To Be Delayed Due To Weak Strata Market
The four high-rise projects in Vancouver are being developed by Wesgroup, Prima, Landa Global, and Westbank.
Howard Chai
June 20, 2024

The developers of four high-rise projects in Vancouver have requested more time from the City before proceeding to rezoning enactment, likely resulting in the projects being delayed.

All four projects have received rezoning approval, but rezoning approvals are only in principle and developers must then meet certain conditions — such as finalizing designs, signing housing agreements, and paying fees — before the rezoning is enacted.

For three of the four developers, this is the second time around they are seeking a deadline extension, with Council granting six-month extensions to them in October 2023 (instead of the 12-month extension they requested). On Tuesday, June 25, Council is set to consider granting the four developers an extension until May 31, 2026 — a date that was not specifically requested by the developers.

"The developers all asked for an extension of various degrees and the City decided to recommend a single common date for ease of tracking as well as in recognition of market and other factors noted in the report," Templar Tsang-Trinaistich, Issues Manager at the City of Vancouver, tells STOREYS.

In a report to Council, Tsang-Trinaistich said that the developers cited "strata market conditions, escalating construction costs, more stringent lending criteria, and higher interest rates" in their extension requests. Recognizing the market conditions and the fact that they may not subside for some time, City staff recommended the May 31, 2026 date.....

https://storeys.com/vancouver-westba...ing-extension/

[GenWhy?]

While I will miss getting those sweet sweet CACs for my community... I won't be sad seeing $1,850 $psf condos on hold for a while longer.

[whatnext]

Originally Posted by GenWhy?

While I will miss getting those sweet sweet CACs for my community... I won't be sad seeing $1,850 $psf condos on hold for a while longer.

I still hold the city needs to take advantage of the provincial power to rezone an entire area, in this case the West End, as rental only. For those who say that's unfair to developers, read the rail one thread re:CP and Arbutus, the city has done it before.

[RDW989]

[QUOTE=whatnext;10230587]Four more West End condo projects on hold.

1450 W Georgia Street
1157 Burrard Street
1640-1650 Alberni Street
1668-1684 Alberni Street

====

If nothing else, signage went up yesterday for the Davie and Burrard site -- 1157 Burrard.
My pixs,
[IMG][url=https://flic.kr/p/2pYJuLn]

[IMG][url=https://flic.kr/p/2pYJVxT]

[whatnext]

Originally Posted by RDW989

If nothing else, signage went up yesterday for the Davie and Burrard site -- 1157 Burrard.
My pixs,

That's weird. Why spend the money now if it is on hold?

[osirisboy]

Cause it’s not dead. They asked for an extension

[whatnext]

Originally Posted by osirisboy

Cause it’s not dead. They asked for an extension

Still why spend the money now? I wonder how many of these buildings were planned for a market that has disappeared? Between restrictions on short term rental, foreign buyers etc it might be some of these might never work financially.

[officedweller]

The 2 Alberni towers strike me as high-end sites.
The Georgian Tower replacement might be high-end because of the neighbourhood, but the tower design seems pretty ordinary.
The Davie & Burrard site doesn't strike me as a high-end site, so maybe the mix of units is potentially saleable?

PS - what kind of a name is Monogram?

A monogram is a motif made by overlapping or combining two or more letters or other graphemes to form one symbol.
Monograms are often made by combining the initials of an individual or a company, used as recognizable symbols or logos.
A series of uncombined initials is properly referred to as a cypher (e.g. a royal cypher) and is not a monogram.

Many of today's monograms are embroidered on items for the home like towels, bedding, robes etc.

https://en.wikipedia.org/wiki/Monogram

[jollyburger]

I mean Wesgroup said this in response to the extension.

"This situation has been further compounded by soaring development cost charges from Metro Vancouver, which are set to increase by more than 300% over the next three years," Jones added. "Third-party studies have concluded that government fees, charges and taxes now make up 20 to 30% of the price of a home, which is impacting the viability of new housing projects across the country. We are pleased that the City is now taking a more pragmatic approach, proposing an extension to the enactment deadline for our project. This extension is crucial as it acknowledges the external factors influencing project timelines and viability. We are hopeful this shift will prevent years of work from going to waste and allow projects to move forward successfully."

[privatejet]

Originally Posted by whatnext

That's weird. Why spend the money now if it is on hold?

And technically they need the rezoning enactment by April 2024, so they do need an extension.

[jollyburger]

Seems like there's movement on the 314-328 West Hastings project near Victory Square. Building permit just went in last week

https://plposweb.vancouver.ca/Public...ctId=234915372

https://www.shapeyourcity.ca/314-328-w-hastings-st

[urbanight93]

Does that mean Chupito will close? Too bad if so, it's a cute patio with good mexican fare.