The Goodman Report listing for Southview Gardens has received the largest click-through Mark Goodman has seen since becoming a partner with his father David at the family-run real estate business in 2002.
“I foresee somebody buying the property as a great holding property with future development potential.”
Complex built in 1973
Southview Gardens, a 6.58-acre property which includes 140 units in 16 buildings in the Champlain Heights residential area, was built in 1973 and has been owned by a local family, which wishes to remain anonymous, since its early days.
Goodman hasn’t published a price at the request of the owners and he invites potential purchasers to contact him for further financial information.
Goodman said most of the calls he’s received about Southview Gardens have been from major Vancouver developers, though he’s also received interest from parties in China, Dubai and some European countries.
“It really struck a chord with not only the development community, but investors who don’t necessarily have an intention to redevelop the site and would just hold it,” he said.
Though Goodman said there’s a moratorium on demolishing rental apartment buildings in Vancouver unless units are replaced on a one-for-one basis, he’s optimistic “there’s a shift in the planning department and at city hall to consider alternatives. While it may not happen immediately, we feel that in the future there’s strong potential for redevelopment.”
Goodman said Southview Gardens has a very low density with a floor space ratio of approximately 0.5 and could accommodate twice the number of rental suites and still have space for market condominiums if it was approved for redevelopment.
Southview Gardens unit breakdown
Southview Gardens includes: 28 one-bedroom, one-level, apartments averaging 525 square feet and $841 in monthly rent; 77 two-bedroom, two-level townhouses averaging 999 square feet and $1,235 in monthly rent; 25 three-bedroom, two-level townhouses averaging 1,225 square feet and $1,434 in monthly rent; and 10 four-bedroom, two-level townhouses averaging 1,466 square feet and $1,485 in monthly rent.
The 140 units have a 1.5 per cent vacancy rate and combine to produce net annual operating income of $1.42 million.
“I’m sure there’s upside on the rents,” said Goodman. “I don’t think it’s grossly under-rented, but there would certainly be some upside on turnover.”
Southview Gardens has in-house property management and caretakers living on-site.
“There’s little or no deferred maintenance that I’m aware of,” said Goodman. “None of the usual suspects — roof, plumbing, balconies, windows, boilers — need repairing. I’d characterize it as a very well-maintained complex.”
Southview Gardens is in a desirable location bounded by East 58th Avenue to the north, Rosemont Drive to the south and Kerr Street to the west. Bus stops are located along the perimeter of the site, providing access to downtown Vancouver and Burnaby and New Westminster to the east.
The Champlain Square shopping centre, with more than 40 merchants, is two blocks north of Southview Gardens.
The Champlain Heights Community Centre — which features a youth centre, preschool childcare, indoor cycling, a dance studio, squash and racquetball courts, a fitness centre with sauna, a tennis court and playground — is a few minutes walk southeast.