46101 Princess Ave, Chilliwack Fraser Valley

$895 000
MLS No: Exclusive
Property type: Apartment Building
Area (Sq Ft)
5,000
Units
7
Price Per Unit
127,857
Cap Rate
4.93
GRM
14.05

Specifications

  • Land Size: 8,712 Sq Ft
  • Year Built: 1971
  • Land Area (Acres): 0.2
  • Storeys: 2
  • Zoning: C2
  • Property Taxes (2017): $4609

Description

Sold Chilliwack apartment building! Located just one block from the famous “Five Corners” intersection downtown Chilliwack, this substantially renovated 7plex apartment building offer huge upside at low cost.  Upside comes as downtown evolves into a revitalized business and community hub.

The property contains 5 one-bedroom apartments and 2 two-bedroom apartment units.  Rents are below market with current income cap rate of 4.93% and projections at over 6% cap rate with market rents.

Over the past few years, downtown has been Chilliwack’s poorest postal code and toughest neighbourhood.  The house at 46101 Princess Ave, Chilliwack earned a notorious reputation when a man was shot and killed in the property on April 19, 2016.  Police said the shooting was targeted.  The incidents was related to a personal dispute between the two men.  The perpetrator was charged and convicted.  As a result of its history, the property is best suited for a brave landlord.

Tenant risk comes with substantial reward.  Today, the downtown community is poised for dramatic change. The City of Chilliwack is proposing to develop the entire block to the west.  Just across the street to the east, a brand new condo building is being built.

The former Safeway site is two blocks away and promises to bring hundred of millions of development dollars to the downtown core.  As a result of investing in downtown Chilliwack, you’ll be in the heart of one of the most exciting market transitions in the entire Fraser Valley.

In addition to the exciting transition in the neighbourhood, 46101 Princess Ave was substantially renovated in 2014-2015.  The interior was entirely renovated with new kitchen, bathrooms, cabinets, fixtures and fresh paint.  Exterior was also painted and a new roof installed.  As a result of renovations, the current tenants are stable and clean with units kept in good condition.

Take advantage of this under-valued neighbourhood before it becomes the hottest  growth market in Fraser Valley.

Property Identification

Address: 46101 Princess Ave, Chilliwack

PID: 012-339-792

Legal Description: PL NWP1737 LT 18 BLK 19 LD 36 DIVISION E

  • One Bedroom
  • Two Bedroom

Rent Roll Summary

46101 Princess Ave, Chilliwack

 

Current Rent

Market Rent

# of Units

Beds

Baths

Type

Avg SF

Avg Rent

Rent/SF

Avg Rent

Rent/SF

5

1

1

Apt

640

$742

$1.16

$840

$1.31

2

2

1

Apt

900

$800

$0.89

$1,100

$1.22

Value Indicators

46101 Princess Ave, Chilliwack

 

Current

Pro Forma

VALUE INDICATORS
List Price

$895,000

$895,000

Price Per Unit

$127,857

$127,857

Price Per SF

$179

$179

Cap Rate

4.93%

6.01%

Gross Rent Multiplier

14.05

14.05

   
FINANCING
Downpayment (Estimate) 30%

$268,500

$268,500

First Mortgage (Estimate)

$626,500

$626,500

Interest Rate/Amortization (Estimate)

3.25% / 25 Years

3.25% / 25 Years

   
CASH FLOW ANALYSIS
Net Operating Income

$44,104

$53,832

Annual Debt Service

($36,550)

($36,550)

Debt Coverage Ratio

1.21

1.47

Net Cash Flow After Debt Service

$7,554

$17,282

Return After Debt Service

2.81%

6.44%

Principle Reduction Year One

$16,569

$16,569

Total Return ($)

$24,123

$33,851

Total Return (%)

8.98%

12.61%

Building Features and Finishes

Exterior

  • Torch-On Membrane Roof (2014)
  • Stucco Exterior
  • Exterior Painted in 2016
  • Secure Gated Parking Area

Mechanical

  • Updated Plumbing
  • Updated Electrical
  • 2 Hot Water Tanks
  • Individual Electric Meters
  • Electric Baseboard Heating

Interior

  • Full Interior Upgrade in 2014/2015
  • Separate Laundry Facilities
  • 4 Appliances Package
  • Updated Kitchen Cabinets
  • Updated Bathroom Fixtures
  • In Suite Storage
  • Surface and Carport Parking

Contact the Agent

Seth Baker

Managing Broker & Owner
Phone
(778) 235-9293
Fax
(778) 650-0350
Address
119 W Pender St, Suite 104
Vancouver, BC, V6B 1S5
Combine bold entrepreneurship, unique data analysis and elite salesmanship, and you have Seth Baker. As Owner of Multifamily Real Estate Services, Seth takes on challenging responsibilities, such as founding his own real estate brokerage company and selling some of the world’s most valuable apartment buildings. He is a master communicator and skillful analyst. His impressive technology background allows him to maintain priceless market data while building powerful relationships with multifamily investors and developers. Ask him about how to get people to agree. It’s his secret talent. Seth Baker has led an impressive career in real estate brokerage. He is personally responsible for more than $87,000,000 in real estate sales, a number that’s growing daily.  He has contributed to a number of industry organizations including LandlordBC, Vancouver Board of Trade, BC Non-Profit Housing Association, Greater Vancouver Home Builders Association and Urban Development Institute. He received his Managing Broker’s Licence through UBC’s…