The city just took one big step towards getting out of their Olympic Village obligations with smaller losses.
Dozens of market rental units have been sold in one bulk sale to an investors group at an average of $350k a piece.
“This is our first multifamily rental investment,” said Malcolm Leitch, chief operating officer for investment management at Bentall. Mr. Leitch is listed as the only director of the limited company that was formed in July by Bentall to take ownership of the property, BK Prime False Creek Residences Holdings Ltd. “This is in our view one of the top rental projects in the city. And we’re very happy with [the price].”
That sale of the 119 units will reduce the City of Vancouver’s leftover debt from the Olympic Village financial mess by $41.5-million in one swoop and get it out of at least one part of its landlord business in the development.
The city still owns the 252 social-housing units in the 1,100-unit project.
We’ve seen some pessimism about the losses faced by taxpayers on this project, so it’s nice to see that number reduced by $41.5 million.
So where does that leave us now for those keeping score? The city isn’t saying, but here’s an estimate:
It’s estimated by those close to the project that the city will lose between $240-million and $290-million in total – including the $170-million that was anticipated for the land, which it will never get.
There are still 90 unsold condos on the market and 26 more being rented.
Read the full article in the Globe and Mail.