0.21 acres multi- family rental sells for $10.8 million located at North Vancouver, B.C.

April 15th, 2021

North Vancouver 22-suite multi-family rental sells for $10.8 million

Western Investor Staff
Western Investor

The central Lonsdale luxury apartment building was rebuilt from the studs with a complete retrofit, including the addition of two floors.

Type of property: Multi-family rental
Location: 1629 St. Georges Street, North Vancouver, B.C.
Number of units: 22
Size of land: 9,299 square feet
Land size in acres: 0.21 acres
Sale price: $10.8 million
Date of sale: April 1, 2021
Brokerage: CBRE national apartment group, Vancouver.
Brokers: Greg Ambrose, Lance Coulson and Kevin Murray.

© 2021 Western Investor

Does mortgage stress test make a lot of sense? – Peter Aceto

April 13th, 2021

Is a stress test hike the wrong move?

Fergal McAlinden
Mortgage Broker News

 he prospect of the mortgage stress test level being raised “does not make a lot of sense,” according to Mortgage Alliance president Peter Aceto.

The Office of the Superintendent of Financial Institutions (OSFI) announced last week that it intends to raise the current test level to 5.25%, or two percentage points above the market rate, whichever is higher, and is currently seeking submissions from stakeholders ahead of possibly implementing the new rules on June 01.

Aceto said that the stress test, first implemented in 2018, was a good idea to ensure stability in the housing market, but that increasing the threshold for homebuyers was the wrong step.

“For me, making that buffer even bigger doesn’t seem like the most logical tool to help borrowers and lenders, and to cool down the housing market,” he told Mortgage Broker News.

The current stress test level is 4.79%, based on the current average five-year posted rate at Canada’s biggest lenders, as per the B-20 Guidelines. The Bank of Canada slashed its five-year conventional mortgage rate from 4.94% last August, but that trajectory has been reversed due to continued sky-high demand in the housing market.  

Instead of hiking the stress test, Aceto said that federal, provincial and municipal authorities could pursue other measures, including addressing the difficulties that new homebuyers have in entering the market.

“One of the biggest struggles concerns new homebuyers, and families trying to get into the housing market,” he said. “Making it harder for investors to participate, in a more surgical way, might be a better way to solve the problem.”

Aceto said that the proposal to hike the stress test level also did little to rectify the fact that demand is currently far outstripping supply of housing in Canada, one of the reasons for the currently madcap market.

“Creating more supply to match the demand is a very hard thing to do,” he said, “but I think it’s something that would be better [than increasing the stress test]. It’s definitely something that we should be working on now.

“I think the government has the largest role to play in terms of getting the supply and demand dynamic right. I think that the affordability that exists today, that was put in place with B-20, made a lot of sense – but making that buffer bigger does not make a tremendous amount of sense to me.”

Ways that the government might address that supply shortage, Aceto said, include incentivizing developers to build houses and initiating the government sale of land. “I think that’s a better, more sustainable way to solve the problem,” he said.

That support for federal intervention to address the current supply shortage in the Canadian housing market was also echoed recently by Michael Bourque (pictured below), CEO of the Canadian Real Estate Association. He told Mortgage Broker News that with the federal government currently spending some $15 billion annually on infrastructure, it could create conditions around allocation of those funds to municipalities in order to ensure that land becomes available for building and red tape is reduced.

 

“Most of the impediments to new buildings are at the municipal level, and municipalities are the ones that are always asking for infrastructure dollars to help them,” he said. “This is the best way to get municipalities to change their behaviour as soon as possible.”

Possible intervention to cool the housing market has become a hot-button issue of late, with federal minister of families, children and social development Ahmed Hussen asserting last week that reforming the capital gains tax exemption is not on the agenda following some speculation that action on that front could slow down the market’s rapid pace.

 

Copyright © 2021 Key Media

New 32-storey office tower located at 1166 West Pender

April 12th, 2021

Timber and tech merge in Mount Pleasant office build

Frank O’Brien
Western Investor

— Vancouver’s first mass-timber offices will be similar to this Hines’ T3 building in Minneapolis.

Texas-based megadeveloper Hines, which recently announced a recent joint-venture to build a new 32-storey office tower at 1166 West Pender, has now linked with PC Urban of Vancouver on the largest and tallest mass-timber office building in Western Canada.

Located at 123 East 6th Avenue, T3 Mount Pleasant will be built of mass timber, where engineered wood replaces concrete. The building will also be certified Wirescore, which means it will have the world’s most robust digital and communications technology and be “future-proofed” to link into whatever new technology becomes available.

“T-3 stands for timber, transit and technology,” said Syl Apps, senior managing director at Hines, in an interview from his Toronto office. Apps said Hines has developed five buildings using T-3 – a Hines’ proprietary office product – in Toronto and nearly a score of them across the U.S. since its first such project in Minnesota in 2006.

T3 Mount Pleasant will be a 10-storey structure with 196,000-square-feet of leased office space. Construction is expected to begin in 2022, and be completed in 2024.

Apps said many office tenants like the authenticity of old brick-and-beam buildings, but such structures do not work well with contemporary technology.

Hines mass-timber buildings, Apps explained, are super quiet and are Wirescore certified, meaning they are wired with the very latest in communications and digital technology.

Building with mass timber offer more than aesthetics, he added.

Employees exposed to wood during their workday have higher levels of well-being and take less sick leave, studies have shown. Timber also has natural anti-bacterial and anti-microbial properties.

A state-of-the-art HVAC systems will provide superior indoor air quality, and the building design will maximize energy efficiency and natural light, according to Brent Sawchyn, CEO of PC Urban.

The current site of the T3 Mount Pleasant is on land owned by the City of Vancouver and occupied by the Simon Fraser University Annex, a 1928 heritage structure that will be incorporated into the new office building.

“We were selected by the city to acquire and redevelop the property based on our previous work in the area and our experience with heritage revitalization,” Sawchyn said. “We looked at the site as a perfect opportunity to bring mass timber office construction to Vancouver, and there is no one in North America with as much experience with this building form as Hines.”

The concept is for a building with the authentic appeal of century-old architecture but the smarts of the 21st century and beyond.

“Wirescore certifies that the building has the most advanced technology, especially regarding redundancy and resiliency. This includes multiple telecom pathways into the building , multiple sources of back-up power and robust connectivity throughout the building to boost the cell signal,” Apps explained. “It means that the Internet connection, or the power, will never go down.”

Abbs said Hines suspects the Wirescore certification leads to superior lease rates and longer tenancies, but said it is too early to quantify that, though he said it does cost more to provide the redundancy systems, such as back-up power generators and wiring for multiple Internet hubs.

“It is money well spent,” Apps said, “We do it because it is important to our tenants, and therefore it is important to us.”

Hines is also doing the first retrofit of Wirescore in Canada, with its reconfiguration of the 40-year, 27-storey First Tower at 411 First Street SE, Calgary, which Hines bought with a partner in 2018. Once tenanted by Telus, the office tower was already equipped with modern telecom connectivity, Apps noted.

Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 25 countries. With approximately $144.1 billion of assets under management, the firm has 165 developments currently underway around the world.

 

© Copyright 2020 Western Investor

Retail commercial site sells for $1.8 Million located at Sixth Street, New Westminster, B.C.

April 9th, 2021

New Westminster commercial site sells for $1.8 million

William Wright Commercial
Western Investor

Freestanding, two-tenant, 2,170-square-foot, triple-net leased building on a 4,356-square-foot lot is in the popular uptown area of the Royal City.

— William Wright Commercial, Vancouver, for Western Investor

Property type: Retail

Location: 538 Sixth Street, New Westminster, B.C.

Number of units: 2

Size of property: 2,170 square feet

Size of land: 4,536 square feet

Zoning: C-3

List price: $1.87 million

Sale price: $1.8 million

Date of sale: March 15, 2021

Brokerage: William Wright Commercial, Vancouver

Broker: Nathan Armour

 

© Copyright 2020 Western Investor

2 major Banks in Canada are giving employees an extra paid day off this year

April 9th, 2021

RBC to give staff extra day off

Kevin Orland
Mortgage Broker News

Royal Bank of Canada and Toronto-Dominion Bank are giving employees an extra paid day off this year, as a lengthy pandemic shows signs of worsening in Canada.

RBC Chief Executive Officer Dave McKay acknowledged that staff are more exhausted now than at any time during the Covid-19 pandemic. The bank needs to “eliminate the stigma associated with asking for time to focus, concentrate, and in some cases, log off and recharge,” McKay said in a companywide memo on Thursday.

Toronto-Dominion also told employees they would get an additional day off, with Chief Executive Bharat Masrani encouraging staff to take it when they need it most. “After a year of sacrifice and disruption, we must all endure these challenging circumstances for a bit longer,” Masrani said in a memo. “I know that this has not been easy, and everyone is tired.”

Burnout has become a more pressing issue for financial firms as the pandemic moves into its second year and some lines of business, including mergers and acquisitions, see a sustained boom in activity.

Last month, Goldman Sachs Group Inc. CEO David Solomon said the firm would improve enforcement of a rule designed to ensure junior bankers don’t have to work on Saturdays. His memo came after junior analysts gave managers a presentation showing that some worked 100 hours in a week.

RBC, Canada’s largest lender, is also giving its roughly 86,000 employees worldwide a free, one-year subscription to Headspace, a meditation and sleep app. An annual subscription costs $69.99, according to Headspace’s website.

“Beyond this extra day off, we recognize the ongoing pressures of the pandemic, especially for those in regions that have reverted back into lockdown,” McKay said in the memo. Those regions include RBC’s home province of Ontario, which declared a statement of emergency on Wednesday for the third time since the beginning of the pandemic.

The CEO encouraged the bank’s employees to take their vacation time and to book the extra off day with their managers. He said that during the pandemic, he has taken a couple of vacations and used them to spend more time outside, learn new songs on his guitar and read more than he has in years.

“I encourage all of you to prioritize your personal time and continue to be mindful about work-life boundaries wherever possible,” McKay wrote.

 

Copyright © 2021 Key Media

Housing market conditions put lenders at financial risk regulators need to take “proactive action”

April 9th, 2021

Housing bubble fears spur Canada to weigh tighter mortgage rules

Bloomberg
Mortgage Broker News

Canada’s bank regulator is proposing tighter mortgage qualification rules to make it more difficult for home buyers to secure financing, a move aimed at cooling the nation’s booming real-estate market.

The Office of the Superintendent of Financial Institutions said it will setup a new benchmark interest rate used to determine whether people can qualify for uninsured mortgages. Home buyers will have to show they can afford a minimum rate of 5.25%. The current threshold, based on posted rates of Canada’s six largest lenders, is 4.79%.

“Sound residential mortgage underwriting is always important for the safety and stability of financial institutions,” Jeremy Rudin, head of the Ottawa-based agency, said in a statement. “Today it is more important than ever.”

The move comes amid a surge in housing prices that’s raising concern among policy makers and economists. Cheap mortgages and new remote-working conditions have spurred a frenzy of demand for more spacious homes, with house hunters bidding up prices across the country.

The Canadian Real Estate Association calculates prices are up 17% nationally over the past 12 months. Twelve major markets — or about one quarter of the total — have posted price gains of more than 30%.

Royal Bank of Canada Chief Executive Officer Dave McKay lauded the regulator’s move.

“I’m encouraged that that is an implementable, short-term policy that does withdraw some borrowers who are stretching themselves too much with low rates into too large of a house,” McKay said on BNN Bloomberg television.

The tighter qualification restrictions will reduce the buying power of households by about 4.5%, according to estimates by Derek Holt, an economist at Bank of Nova Scotia.

OSFI said housing market conditions “have the potential to put lenders at increased financial risk,” forcing regulators to take “proactive action.” The regulator said it will revisit the calibration of the qualifying rate at least once a year to ensure it remains appropriate. The plan is to implement the changes on June 1, after consultations.

In the meantime, it’s watching how banks handle the increased mortgage demand. “We are looking for heightened vigilance from lenders on collateral management, income verification, and debt servicing,” Rudin said at a news conference. “We will also be monitoring for institutions extending amortization periods and increasing debt servicing limits.”

The move impacts the uninsured mortgage space that is overseen by OSFI. The federal government is in charge of mortgage qualification for insured mortgages. There was no indication in the statement that the government planned to follow the move, and requests for comment from the finance department weren’t immediately returned.

One unintended consequence could be to temporarily accelerate the market as buyers rush in before the changes are implemented.

“We may well see an even hotter spring housing market as a consequence to OSFI’s move,” Holt said by email. “We’ll get more pulled-forward demand.”

Paul Taylor, head of Mortgage Professionals Canada, an industry group, said he’s skeptical the move will make much of a difference given high levels of investors entering the market who won’t be impacted.

“Even with these measures in place I don’t think you’re going to see the housing market really calm down,” Taylor said.

–With assistance from Shelly Hagan, Kevin Orland, Erik Hertzberg and Ari Altstedter.

 

Copyright © 2021 Key Media

Retail strata units sells for $2.99 Million located at Yates Street, Victoria

April 8th, 2021

Two new retail strata units in Victoria sell for $555 per square foot

William Wright Commercial
Western Investor

Adjacent units are on the ground level of the new Verve condominium project on Yates Street near Victoria’s downtown.

— William Wright Commercial, Vancouver

Property type: Retail strata

Location: 101 and 102 848 Yates Street, Victoria

Total size of units: 5,383 square feet

Zoning: CS1

Sale price (total): $2.99 million

Brokerage: William Wright Commercial, Vancouver

Brokers: Connor Braid and Harry Jones

 

© Copyright 2020 Western Investor

Commercial Development Site sells for $6.75 Million located at Hastings Street, Burnaby, B.C.

April 8th, 2021

Two adjacent N. Burnaby commercial lots sell for $6.7 million

Goodman Commercial Inc.
Western Investor

Located in the Hastings Village area, the two lots total 10,296 square feet with development potential to 24,710 square feet, and both have rental income.

— Goodman Commercial Inc., Vancouver, for Western Investor

Property type: Commercial development site

Location: 4651 and 4663 Hastings Street, Burnaby, B.C.

Number of units: 12 (8 residential rentals, 3 commercial rentals)

Zoning: C-4A

Total building size: 11,169 square feet

Size of land: 10,296 square feet

Potential floor-space-ratio: 2.4 FSR (24,710 square feet)

Sale price (total): $6.75 million

Brokerage: Goodman Commercial Inc., Vancouver

Brokers: Mark Goodman and Cynthia Jagger

 

© Copyright 2020 Western Investor

Commercial Development Site sells for $6.75 Million located at Hastings Street, Burnaby, B.C.

April 8th, 2021

Two adjacent N. Burnaby commercial lots sell for $6.7 million

Goodman Commercial Inc.
Western Investor

One-third of Canadian professionals currently working from home due to the pandemic

April 7th, 2021

Hard core of work-from-homers won?t return to office

Wl Staff
Western Investor

 — More than half want to work only part time in the office. |CBRE

About one-third of Canadian professionals currently working from home due to the pandemic would quit and look for a new job if required to be in the office full time, according to a new survey by global staffing firm Robert Half.

More than half of all employees surveyed (51 per cent) said they prefer a hybrid work arrangement, where they can divide time between the office and another location. Professionals, however, also expressed the hesitations about working from home full time, citing loss of relationships with co-workers, fewer career advanced opportunities and decreased productivity.

In addition, workers may not be ready to return to the office, without some incentives to sweeten the welcome back.  Professionals surveyed said the top ways their company can support them include allowing greater freedom to set office hours, employer-paid commuting costs, a relaxed dress code and providing childcare.

“After more than a year of uncertainty and pandemic-induced remote work, there is a growing desire among some business leaders to return to business as usual, including welcoming employees back to the office once it is considered safe,” said David King, Canadian senior district president of Robert Half. “However, companies should be prepared for a potential disconnect between their ideal work structures and that of their employees.”

The online survey was developed by Robert Half and conducted by an independent research firm from March 9-16, 2021. It includes responses from more than 500 workers 18 years of age or older at companies in Canada.

 

 

© Copyright 2020 Western Investor