Grosvenor’s Structured Development Finance (SDF) business has closed on a $39.6 million financing commitment for Vancouver-based Intracorp’s multi-building Gardena residential development project in Coquitlam, B.C.

Gardena’s most prominent element is to be the 42-storey Lotus condominium tower, for which construction is to begin in the coming weeks. It is slated for completion in 2027. 

Located in Coquitlam’s rapidly growing Burquitlam neighbourhood, Gardena is to provide 527 condominiums and 218 purpose-built rental apartments across four buildings to the Metro Vancouver market.

It is one of the largest developments to be undertaken by Intracorp.

The financing deal is also the latest in a relationship between Grosvenor and Intracorp which extends over more than 20 years. During that time, they’ve paired up on 26 transactions which have resulted in over 2,500 residential units being delivered to multiple Canadian and U.S. markets.

“We’re excited to continue to build on our long-term relationship with Intracorp through our commitment to Gardena,” Sean Wheeler, Grosvenor's vice-president of co-investment in Vancouver, said in the announcement. “With Coquitlam’s continued growth, we take great pride in being able to contribute to the provision of well-built and much-needed varied housing options.”

Grosvenor's SDF program

Grosvenor’s SDF program provides “equity-like capital” to residential and multifamily developers across North America. 

Established in 2000, the SDF business has provided capital to 78 developments leading to over 8,900 housing units. The program continues to seek opportunities involving mixed-use developments, apartments, condominiums and townhomes in the Vancouver, Toronto, Northern and Southern California, Denver, Washington, D.C., and Boston areas.  

“Gardena aligns with the SDF program’s strategy to invest in high-quality, sustainably built housing near transit with best-in-class developers in Grosvenor’s targeted North American markets,” the announcement states. 

Intracorp reports over 360 of the condo units in the Lotus tower have been pre-sold.

Intracorp's Gardena development

In addition to the housing units, the Gardena project includes 25,000 square feet of indoor and outdoor amenity spaces.

Amenities will include fitness studios; co-working, meeting and podcast rooms; indoor social and dining areas; an outdoor rooftop movie theatre; communal and “Secret Garden” areas; outdoor social, barbecue, kitchen and play areas; guest suite and more.

The property is located just a few minutes walk from the region’s SkyTrain transit line, Burquitlam’s shopping district, the new 55,000-square-foot Bettie Allard YMCA, numerous parks and recreational trails. 

“Gardena will bring 527 condominium homes and 218 rental homes to Metro Vancouver, through Intracorp’s first master-planned community in the Burquitlam neighbourhood,” Don Forsgren, Intracorp Homes’ CEO, North America, said in the announcement. 

“Gardena is our largest single-phase community in Intracorp’s 48-year history. It is fitting to build this much-needed housing with the support of Grosvenor, who are long-term and trusted partners to us in both Canada and the United States.”

An Intracorp spokesperson told RENX that while the project does consist of multiple buildings, the construction will take place at the same time. Construction starts for the various elements will be separated by just a few months.

Gardena is also the sixth deal to be capitalized into Grosvenor’s True North III Partnership, the third iteration of a Grosvenor partnership formed to fund residential and mixed-use developments. The partnerships have provided over $550 million to date on projects representing over $3 billion in gross development value. 

"We believe 2024 has strong potential for the SDF program given our expanded geographic footprint," Ashleigh R. Simpson, Grosvenor’s head of structured development finance and senior vice-president, said in the announcement.

"Among developers there is an acknowledgement that thoughtfully underwritten residential development opportunities in supply-constrained markets are likely to have positive reception from capital sources, and SDF has a role to play in this space." 

The Gardena investment with Intracorp follows Grosvenor’s preceding True North III commitments, which are all located in the U.S.

About Grosvenor and Intracorp

Grosvenor has operated a diversified real estate business in North America since 1952. 

As of Dec. 31, 2022, the company had assets under management of $4.1 billion US, including 74 high-quality properties, and was executing on a $4.7 billion US development pipeline.

Grosvenor also values long-term partnerships; the average length of the relationships with its nine active capital partners is 17 years. 

Intracorp has a 45-year history in Greater Vancouver and now also operates three U.S. offices. The company has developed almost 32,000 homes.