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Apartment Building Deals of the Week

As of February 6, 2016 there are 107 apartment building deals currently available in British Columbia1. Average cap rates for buildings for sale range from 1.88% in City of Vancouver to 7.24% in the Kootenays. Average price per unit is as low as $61,038 in Kootenays and nearly $500,000 in Vancouver.

The biggest surprise in this week’s report is the low cap rates in Northern BC.  While many small northern markets tend to sell around 8% cap or more, the current average for the region is only 5.88%.  Average price per door is a staggering $109,906. Partially accounting for the high prices are new multifamily rental constructions in Prince George. Typically, Prince George will list and sell in the 6-7% cap rate range. Right now, one brand new rental townhome project is listed for sale at $350,000 per door and 3.80% cap rate. Remove that one listing from the analysis, and price per unit drops to $92,756.

Volume of apartment building deals is spread throughout the province. City of Vancouver, which contains more than 60% of significant apartment buildings in the province, has just 24% of current buildings for sale. Vancouver Island has the highest proportional number of listings related to inventory.  Current listings are mostly concentrated in Nanaimo.

Apartment price per unit in Vancouver is double price per unit in Victoria. Large amounts of capital are required for anything in Metro Vancouver and Victoria.  As in the past 18-24 months, opportunities are scarce causing extreme downward pressure on cap rates.

Multifamily investors in search of high growth areas should consider a look at Nanaimo, Fraser Valley and Okanagan apartment buildings. Price per door and cash-flow numbers may be more accessible to the independent owner-operator.

 

Apartment Buildings For Sale in British Columbia

Prefer to see a data table instead of fancy graphs?  Here are the numbers:

Total
Listings1

Total Apartment
Units For Sale

Average Price
Per Unit

Average
Cap Rate

Vancouver

26

518

$497,600

1.88%

Metro Vancouver

16

348

$371,064

3.38%

Fraser Valley

13

410

$213,501

3.87%

Northern BC

15

501

$109,906

5.88%

Okanagan

14

265

$148,783

5.69%

Victoria

7

276

$246,481

3.51%

Vancouver Island

14

335

$137,263

5.37%

Kootenay

2

66

$61,083

7.24%

All British Columbia

107

2,719

$245,148

3.68%

More Information on Apartment Building Deals

Sold apartment building statistics are available for qualified apartment building owners.  Please email [email protected] or call (778) 235-9293 for deals relevant to your building.

Want to receive a list of all active apartment buildings for sale in British Columbia?  Register below to see all Apartment Building Deals of the Week

 

 

1 Feb 6, 2017 Active Listings with Price Greater than $900,000