The appetite to develop purpose-built rental projects in the Lower Mainland continues to be strong, with Anthem Properties and BGO forging a partnership to build a new rental building in Coquitlam. 

The project is on a two-acre site located at 1184 Inlet St. This marks the first joint venture between Anthem and BGO, two long-time developers and property owners.

The plan includes two six-storey wood-frame buildings with 197 homes, ranging from studios to three-bedroom apartments. The site is located next to Lafarge Lake and near the Lafarge Lake-Douglas SkyTrain Station. 

"One of the reasons we like this location is because of the exceptional connectivity," said Mark Kopinya, senior vice-president, development with Anthem Properties.

He said residents will benefit from access to the SkyTrain but also natural amenities around the lake and the local trail network: "We look at this as kind of an alternative for someone who wants the urban amenities, but also . . . those natural amenities at their doorstep as well."

Purpose-built rental big part of BGO's strategy

The BGO team is very focused on rental development as part of its strategy, said Chetan Baweja, managing director, head of Canadian value-add and separate accounts, BGO.

"We believe that there's a real lack of livable, more affordable low-rise rental product in the Greater Vancouver area."

He said BGO was keen to partner with Anthem.

"They kind of checked all the boxes in that they're a very experienced developer of low-rise product." Anthem is also an integrated organization with development, construction and property management experience, he noted.  

The apartment buildings will include dog wash stations, bike storage, parcel storage, a fitness facility, party room, outdoor playground, urban agriculture plots, and barbecue areas. The buildings will also have 3,025 sq. ft. of amenity space, 173 parking stalls and 196 storage lockers.

The property is designed to be 50 per cent more energy-efficient than the 2018 BC Building Code standards, achieved through enhanced insulation, upgraded glazing, advanced air barriers and high-performance energy recovery ventilators. 

Construction financing and municipal approvals are secured, and the co-owners, with Anthem acting as the development, construction and property manager, aim to start construction right away.

Completion is anticipated for late 2027.

Rental developments remain focus in region

As the condo pre-sale market in the region continues to struggle, more developers are turning to, or expanding, their purpose-built rental platforms. 

Purpose-built rental supply is indeed growing, according to the CMHC's 2025 Mid-Year Rental Market Update. It reports CMHC construction financing programs and products supported an estimated 88 per cent of Canada’s new purpose-built rental apartment starts in 2024.

As rental buildings complete and list for rent, Calgary, Toronto, Vancouver and Halifax saw advertised rents in the first quarter of this year decline between two to eight per cent compared to the same period last year, the report said. 

In the Lower Mainland, demand for rentals remains strong and that’s stoking development, Kopinya said. So too is favourable financing to develop rental through the CMHC programs. 

He said home ownership, despite a softening in the regional market, remains unaffordable for many people. "Long-term rental has become a more necessary kind of housing option for individuals."

A key part of BGO's broader investment strategy focuses on low-rise rental apartments, Baweja said. "When we find a six-storey product that is built wood-frame, what we really like about it is that you can typically build it in a faster timeframe.”

He said the firm prioritizes shovel-ready sites and projects that will deliver rental homes within three years. 

Baweja said BGO is seeing rental demand from all generations now. More people see long-term renting as a viable option, especially amid rising mortgage and purchase costs. Moreover, much of the rental stock in cities around the region is older or privately owned, and demand for institutionally and professionally managed rental homes grows stronger.

He said they see a stream of renters including downsizers, singles and more young families that plan to rent long-term.

Multifamily development remains "challenged" 

"There's no secret that development of multiresidential has become more challenged, and that's a function of rising interest rates; that's a function of some more economic uncertainty; that's generally a function of total costs and timeframe to build these projects becoming less economical," Baweja said. 

Overall housing development has slowed, he said. But that means there will likely be a shortage of homes as regional population increases resume during the next few years.

"We're going to start to see a larger supply-demand imbalance,” Baweja said. “We think that when others are not developing, it's a good time to develop and to hit that three- to five-year window where we can provide supply that will help with growing demand, that can be rented out affordably."

Kopinya said he's optimistic because it feels that all government levels are starting to pay more attention to the challenges and costs developers face. "We're starting to see a bit more of a collaborative approach, not us versus them. They're looking at ways to streamline approvals, defer fees and (put) effort (into) supporting the delivery of new housing."