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Guarantees and a fresh array of high-end finishings revitalize project

Kate Webb
Province

In early 2008, the name Sophia became synonymous with real-estate scandal.

The eight-storey, 81-unit condo midrise — which was 85 per cent complete at the time — grabbed major headlines when developer the Eden Group, citing sky-high construction costs, pulled out of the project, leaving buyers’ contracts up in the air.

A B.C. court appointed the Bowra Group as the new managers of the project, and the expert receivership team has since picked up the pieces. Bowra is now re-selling the 50 per cent of units that were given up by original buyers when the prices had to be increased to cover final construction costs.

The units now cost about 22 per cent more than they did when they first hit the market in 2005. The difference this time around is that they come with a solid guarantee of completion at the posted price — and a fresh collection of high-end finishings.

“Hardwood is now standard in the living room, dining room and kitchen, and all the fixtures have been upgraded to Kohler,” says Graham Snowdon, project manager for The Agency Real Estate Marketing Group, which is marketing Sophia.

In addition, all the same designer features that sold the suites the first time still apply: high ceilings (nine feet minimum), big windows, great views and a super trendy neighbourhood that beckons young professionals.

“I live four blocks from here and I love it,” says Snowden, a twenty-something himself, of Sophia’s address just a block east of Main on 11th Ave. “I’ve had a lot of friends move to this neighbourhood from Kitsilano and other areas . . . south Main is emerging as a bit more of a young neighbourhood with lots of independent restaurants.”

From the second floor of Sophia, it’s apparent why life on Main Street is such a draw: All around you can see mountains. By the third and fourth floors you can see the water, and from the fifth floor, English Bay comes into view.

“You get these outstanding views from this location,” says Snowden. “Even from the second floor you’re getting great views of the North Shore mountains, Little Mountain and Queen Elizabeth Park.”

Inside, the engineered hardwood floors come in a choice of dark chocolate or a lighter, warmer stain. The kitchen is modern and efficiently laid-out, with stainless steel GE appliances, granite countertops, a stainless-steel undermounted sink, and an eating bar.

The cabinets come in a white wood veneer or can be upgraded to a more luxurious frosted-glass combo. The bathrooms are ultra-modern as well, with an eye-catching vessel sink, imported polished granite countertops and custom-designed flat panel cabinets.

The suites are flooded with light. The bedrooms feature huge windows. In townhouse units, the master suite is adjacent to an open-air balcony. In condo units, a balcony, patio, or both, is located just off the living room.

Peter Simpson, CEO of the Greater Vancouver Home Builders’ Association, says home hunters have nothing to worry about when it comes to purchasing at Sophia, because buying in a development under receivership guarantees there is no more risk of price fluctuation.

“Based on what’s happened with Sophia, this is the result that everyone has been working towards, and it has been achieved,” says Simpson. “It’s a well-designed building in a good location, and I think it’s a good conclusion.”

There are fewer than 30 units left at Sophia, and move-ins begin in October.

– —

Sophia

What: Sophia, an 81-unit, eight-storey condo and townhome midrise.

Where: 298 East 11th Ave., Vancouver.

Developer: Bowra Group (receiver manager).

Sizes: One-bedroom-plus-den up to two-bedroom-plus-den, from 665 sq. ft. to 1,310 sq. ft.

Prices: $374,900 to $689,900 (five per cent off for limited time).

Open: Presentation centre

and show home open at 298 East 11th Ave. from 1 to 6 p.m. Monday to Thursday, and 12 to 5 p.m. weekends.

More information: Go to www.sophialiving.com or call 604-453-6600

© The Vancouver Province 2008

Weekend trips away on the agenda

Sun

A former East Coast ferry, the previous planned reincarnations for which came to naught, is now being promoted as a West Coast floating condo project.

The Pacific Aurora, built in 1962, is being renovated — again — with 22 condominium units for sale.

“It has just been going gangbusters. The phone has been ringing off the hook,” sales and marketing manager Mark Boyd said Friday of the vessel’s latest attempted resurrection.

Previous plans to turn it into a timeshare project and a gambling casino fell through.

The vessel is in the Allied Shipyards in North Vancouver being transformed into condominiums marketed by Waterfront Lifestyles International.

“It’s in such good shape, it’s only going to take 30 to 60 days to turn this ship loose,” Boyd said.

Condos on the 188-foot vessel range in size from about 100 square feet to 340 square feet. They are priced between $189,000 and $599,000 per unit.

Boyd said the owners brought him in from Florida, where he operated a business converting vessels into condos.

He admitted the age of the vessel might put some potential buyers off, but said it was inspected and found in good repair.

“We are certain there are 10 to 20 more years’ useful life left in that ship. That is the expectancy, not the guarantee,” Boyd said.

Where the ship will be berthed remains uncertain, but he said the search has been narrowed down to about five locations in the Vancouver area.

From its new base, the Pacific Aurora would embark on weekend cruises, which could include whale watching, cruising the coast or whatever else its strata board decides.

The plan is to make an annual twoweek cruise to destinations such as Alaska or San Francisco.

Shipboard life would include condominium fees, which could run between $12,000 and $32,000 a year. Meals would be included in the price.

Boyd is looking for purchasers who will put 20 per cent down into an escrow account.

When the renovations are complete, he is offering anyone who wants out of the project their money back, with interest.

The former CN Marine cargo-passenger ferry, known as the MV Taverner, sold for $262,000 in 1996 after being taken out of service the previous year. It sailed to Vancouver where it underwent a $5-million refit.

In 1997, the ship was almost reborn again after Marine Growth Canada announced it had purchased the vessel, now called the Pacific Aurora, for $1.35 million. The new owners said they wanted to sell seagoing time-shares.

“The time-shares did not sell,” Boyd acknowledged Friday.

It was then promoted as a “coastal cruiser,” but languished in its berth after $1.25 million in cost overruns tangled it in liens from unpaid suppliers.

The vessel found its way back into the headlines in 1999 when it was included in an application to B.C. Lottery Corp. for a gambling licence. It was supposed to become a destination casino with 35 slot machines, four gaming tables, 38 sleeping cabins, a restaurant and a pub.

The head of the Prince Rupert Port Authority said in interview with a Vancouver Sun reporter in 1999 that the expression of interest from the operators of the Pacific Aurora contributed to the decision to built facilities for small cruise vessels.

Financial difficulties repeatedly delayed plans for the ship’s reincarnation.

Chaplin poised to be the King of Seniors

Kim Pemberton
Sun

Michael Chaplin may be known as a savvy, ambitious developer, but his attention to an emerging housing market that caters to aging baby boomers may soon see him known as something else — the King of Seniors.

The 44-year-old now has two large senior housing projects underway in Mission and Creston, and plans to continue building more in British Columbia, beginning with New Westminster.

And if there’s any doubt that Chaplin will one day have the title King of Seniors, one only has to look at his track record, which began when many of his teenage contemporaries were working at McDonald’s or babysitting to earn a few bucks. Chaplin, on the other hand, bought his first house, an income-generating property in Langley, when he was only 16 years old. The amicable Chaplin was one schoolboy who knew his math and quickly figured out that real estate was the way to riches. The Langley property had a monthly mortgage of $240, but brought in $900 in rent, giving Chaplin a profit of $660.

Chaplin earned the $7,000 down payment for the $54,000, four-bedroom house by working for his mother-in-law’s management company, painting apartments and doing minor fix-ups. Later, he would become a commercial seafood harvester, while working his way up the property ladder.

Recognizing that real estate could result in a “passive income”, the young Chaplin began amassing rental properties throughout his twenties and thirties, ending up with six multi-unit apartments in New Westminster and Vancouver and a detached home in Aldergrove. One of his former employers has been a long-term tenant in the Aldergrove property, but the Langley house was sold in 2002.

Chaplin, who enjoys being hands-on with all his properties, lives in his first five-plex he bought in East Vancouver and shares a suite with one of his tenants. A solo move to a Kitsilano condo is in the near future.

The move from friendly landlord to senior housing developer was again a no-brainer for Chaplin. Noticing that many of his tenants in his lowrise apartment blocks were seniors, he understood first-hand that there was a demand for quality senior housing.

“Senior housing is the wave of the future. It’s a growing industry. I call it the grey tsunami,” he says. “There’s 1,000 people a day turning 65 [in Canada], and there’s an incredible shortfall of suitable housing.”

Passionate about his new career, Chaplin has been researching the industry for the past four years, and has visited over 20 senior housing complexes in B.C. and Ontario.

Chaplin and an Ontario business partner, who already owns 12 such facilities, were ready to break ground in B.C. and chose Creston and Mission for their debut projects here. Both communities were chosen because of their high numbers of seniors; Chaplin points out that Creston has twice the national average of senior citizens.

The 138-unit project in Mission, called Cedarbrooke Chateau, and the 84-unit project in Creston, called Cherrywood Estates, both feature a lifestyle component that Chaplin calls “havenplex” — a term he has copyrighted.

“Aside from the security they offer, they will be like landlocked cruise ships in terms of amenities, with restaurant-style meals, fireside bar bistro lounges and a fitness centre,” says Chaplin of his first ventures into the world of retirement homes.

And since there will be an activity director in both complexes, residents will never be at a loss for what to do with their time. Other features will include a therapeutic pool, a library and hair salon, to name a few of the on-site amenities.

“I personally look forward to the day I can move into it. Seven out of 10 residents are women so why wouldn’t I want to go,” jokes Chaplin.

But for now, Chaplin, who enjoys cooking and baking, is looking forward to visiting his two housing projects and trading recipes with the ladies.

All of the properties are rental, but unlike many senior housing complexes, these will have larger than average square footage. Chaplin notes a typical condo for seniors is in the range of 380 to 560 square feet but the homes he is building are typically 800 to 1,100 square feet.

Every suite in each complex will overlook lushly landscaped central courtyards — an ideal place for residents to enjoy warm evenings or entertain friends. And with Chaplin’s track record of befriending tenants, chances are high he will be popping over for visits.

For more information call (604) 783-6003. The website for Cherrywood Estates is www.CherryWood-Estates.com.

© The Vancouver Sun 2008

 

The Vancouver real estate market won’t likely crash, but let’s plan for reality

Bob Ransford
Sun

The future of the real estate market — that was, until spring, on what seemed like an endless trajectory beyond the stratosphere — is this month’s subject for ponder.

Just as we hate to admit that seasons do change, there are those who don’t want to admit that real estate markets are cyclical and the signs of the latest downturn are appearing as surely as October’s leaves will foretell the end of our brief respite from winter’s rain.

No one wants to be the bearer of doom and gloom, or the one to create a self-fulfilling prophecy, but the cautionary whispers heard only a month or two ago have turned into frank talk about a different world that is unfolding.

That world is one where the fundamentals that drive residential real estate demand have now eroded and the downturn has arrived in Canada.

The U.S. credit crunch brought about by hordes of over-leveraged consumers and wartime public debt, the onslaught of inflation spurred by rising energy prices and the jump in the Canadian dollar, all combined to point to concern about the short-term resiliency of our nation’s economy.

Will it all spell a crash for residential real estate in Vancouver? Probably not. However, our local residential real estate market isn’t immune.

While Vancouver has become a destination for real estate investments, especially from individual international investors looking to park their dollars in condominiums in our livable urban core, the biggest driver for real estate demand – especially demand for new homes outside the downtown core — is still local job creation.

Some are suggesting that prices have already begun to fall in markets across the region, but this “adjustment” is explained as little more than unrealistic targets falling way to realistic pricing.

Meanwhile, employment levels still remain at record highs. When many of the big job-creating construction projects begin to wrap up next year in advance of the Olympics, a drop in employment could see a corresponding drop in demand for new homes, especially in the suburbs furthest from downtown Vancouver.

So, what is the frank talk? It is not about a crisis. It is simply about good business planning — the kind of planning that can help to avoid a crisis. The talk is really about the necessary risk calculations needed before launching new development projects.

While much of the rest of North America ponders doom and gloom, here in Vancouver we plan for reality.

At the same time, there is no better symbol of the awesome impact of a real estate boom and the way in which development can transform a city than what is rapidly taking shape on False Creek’s southeast shore. The second-to-last piece of the puzzle in a livable inner city has risen out of the ground faster than any other development that had ever taken place in Vancouver.

A few weeks ago, I counted 11 construction cranes towering over the Olympic Village and the vast collection of other multi-family residential buildings that will soon define an entire new inner-city neighbourhood.

Amazingly, less than two and a half years have passed since Vancouver city council stamped its final approval on the master plan for this new Southeast False Creek urban village. Fine-tuning the plan, designing the buildings and the public areas, working out all the engineering details, obtaining the technical approvals and launching construction on numerous individual projects across the expansive site all happened at lightning speed since.

All of this effort and ingenuity will result in a new neighbourhood that promises to set the bar as high as it has ever been set before in Vancouver. A new form of density — midrises, instead of highrises — and a new commitment to neighbourhood sustainability will be a great model for the form of development we might see in the future in other parts of the city. Hopefully, the process of getting the job done will also serve as a model for what can be accomplished efficiently and expeditiously if there is a determined joint commitment shared among city officials, the design community, developers and citizens.

Enjoy summer while it is here.

Bob Ransford is a public affairs consultant with CounterPoint Communications Inc.

He is a former real estate developer who specializes in urban land use issues. E-mail: [email protected]

© The Vancouver Sun 2008

 

‘Location, location, location’ huge draw for buyers

Barbara Gunn
Sun

SOPHIA

Project: 81 one-and two-bedroom condos and townhomes in an eight-storey building

Location: 298 E. 11th Ave., Vancouver

Architect: Linda Baker Architect Inc.

Size range: 660 – 1,300 sq. ft.

Price range: $374,900 — $689,900

Phone: 604-453-660

Hours: 1 – 6 p.m., Mon – Thurs; noon – 5 p.m., Sat and Sun

Website: sophialiving.com

Occupancy: October

– – –

First-time homebuyer Kristin Gray considered backing out of her contract to purchase a residence in the upscale Sophia building when the project ran into financial difficulties earlier this year, but ultimately opted not to — in large part because of where it is.

The 23-year-old had bought her one-bedroom fifth-floor condo in November of 2007, just weeks before the Sophia project fell into receivership after the Eden Group development company halted construction on the project, citing labour costs, municipal strike delays and contractors who had abandoned the job as contributors to some $4 million in cost overruns.

At the time, 77 of the 81 units — Sophia is comprised of 75 condominiums and six townhomes — had been purchased in advance sales. When construction resumed, those purchasers were given a choice by the court-appointed receiver: they could either take their deposits and walk away, or they could accept the terms of new agreements that would see them pay 90 per cent of the assessed market value of their homes.

“For a while, I did consider cancelling my presale contract and getting my money back,” says Gray, who was instrumental to forming a purchasers’ group that assembled to address buyers’ joint concerns.

In the end, the university student and accountant opted to stick with her contract — her price adjustment saw her pay approximately $20,000 on top of an initial purchase price of about $350,000 — primarily because of Sophia’s location.

“I bought at Sophia because of location, location, location,” says Gray of the building, which is located in the 200 block of East 11th Avenue, just east of a stretch of Main that’s become an increasingly popular neighbourhood where funky cafes and designer clothing stores sit next to established antique shops and Chinese eateries.

“I work downtown and go to school at UBC and Sophia is 10 minutes away from both. Plus, the culture — shops, restaurants, pubs, etcetera — on Main Street is unbeatable … I looked at buying downtown, but for a first-time buyer, the amount I would need to spend to get a decently sized unit (over 500 square feet) was just not possible.”

Of the initial Sophia purchasers, some 37 did walk away from their contracts, reports Doug Chivers, a representative of the Bowra Group, receiver for Sophia, adding that most of those were investors. But the bulk of early buyers who had bought into the project — not as investors, but as individuals who intended to make the Sophia units their homes — stuck with their purchase plans. That doesn’t surprise Michael Sikich.

“You’re getting a product that’s been improved, at a great location, with outstanding views,” says Sikich, president of The Agency, which is marketing the remaining homes. “It is such a fabulous product at a fabulous location.”

Thirty-three of the homes in the eight-storey Sophia building are still available and selling at approximately $550 a square foot, or about $100 a square foot more than the original asking price, says Chivers.

And that, says Sikich, represents “very, very good value in today’s market.”

“If people go and shop the neighbourhoods … we’re a couple of hundred dollars [a square foot] cheaper than being downtown,” he says. “You look at everything else that’s being offered out there, for location, for its finishing level, for its occupancy – now people are going to be able to move in within the next two or three months – this is definitely an advantage to people.”

Sophia is located within a quick drive of the downtown core, is situated on major transit corridors, and will offer some stunning city views to residents when they take up residency in the fall, says Sikich.

“I don’t think people realize how hot this location is, and particularly the views,” he says. “We get outstanding views, basically, from our third floor and up – sweeping views of the mountains and the city; it’s quite spectacular.

“We recently had a visitor from Toronto that we’re working with to purchase a unit and he was telling us that you just don’t get these kinds of views in Toronto. He said: ‘I cannot believe how beautiful the view is from this location.'”

The Sophia homes — all with balconies, all with electric fireplaces, all with gas ranges and granite countertops — may have the same outlook envisioned by the developer, but there have been some improvements and upgrades. “There were things that needed to be repaired … to ensure the building was up to a very high standard,” reports Chivers, adding that a high-end Kohler fixture package, which was not among the original finishes, has now been installed in the residences.

As well, the Bowra Group has arranged to provide purchasers with homeowner protection through the National Home Warranty’s 2-5-10 program, time-limited coverage for everything from defects in materials and labour to the building’s structure.

“Also, we have signed up for the … National Quality Assurance Program,” says Chivers. “Prior to turning over a unit to a purchaser, National will complete a unit inspection and will identify any defects or deficiencies to repaired or completed prior to occupancy of unit.”

So far, says Sikich, there has been a diversity of buyers, representing everything from young professionals to “older couples that are downsizing.”

“We’re getting quite a healthy mix of people,” he says. “We’re actually quite pleased with that, and I think that diversity will continue to help the environment in the building.”

Chivers says the presale purchasers who have stuck with their contracts have demonstrated great patience throughout the delays in the building of their new homes, but are now greatly relieved knowing that an occupancy date is in sight.

And the fact that they agreed to pay an additional sum for their homes – that amount would have varied, he says, depending on the size of unit and date of purchase – says much about their confidence in the project and their desire to live here.

“A big part of that was being able to get National Home Warranty involved and on board so that the 2-5-10 warranty is in place,” Chivers says. “And you’ve got a lot of people that do like the building. I mean, this is an attractive location, it’s an attractive space, and they’re looking for somewhere to live, and this is the place that they want to do it.”

As for Kristin Gray, who is now poised to take up residency in her new home — some nine or 10 months later than she’d originally expected — the looming moving day is becoming more than a little exciting.

“I am beginning to get excited again,” she says. “… Moving into your first new place is a major milestone in life. Even after many months of waiting anxiously, I know that the Sophia is going to be a great place to live.”

© The Vancouver Sun 2008