Residential real estate investors are giving Metro Vancouver's suburbs a "warm embrace" of late, market analyst David Goodman tells us. (Like a grandmother or the sun at the beach.)
They're drawn to the larger lot sizes, unused densities and higher cap rates on offer in the hinterland. (Plus the lines at the bank are usually shorter.) Of the estimated 3,100 rental apartment buildings in Metro Vancouver, David tells us, 1,300 of them are located in suburban centres like Abbotsford and Surrey. "And it's these suburban areas that are getting all the activity [from investors] for the most part."
The recent $10.3M purchase by Calgary-based REIT Mainstreet Equity of Abby Glen Apartments, a 108-unit low-rise apartment complex in Abbotsford—is a case in point. This is right up Mainstreet's alley, David says of the deal, which closed in mid-May. The 1977-built apartment was sold by Prestigious Investment & Management, which acquired the property in 2009 for $8.5M. "Mainstreet likes going into lower-tier markets and taking buildings that are tired and revitalize them. So it's a perfect acquisition for them."
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