The B.C. Tree Fruits building next to the Tolko mill site, outlined in red, was bought by the Mission Group for almost $24 million.

Image Credit: Submitted/HM Commercial Group

It’s not because Mission Group spent almost $24 million to buy a four-acre industrial site that’s important to Kelowna. It’s what’s ultimately going to be built on the B.C. Tree Fruits site next to the former Tolko mill on the waterfront in Kelowna’s North End.

“The big part of this story is the fact that, when you’re looking at somebody who’s buying basically a redevelopment site for close to $24 million, the value of what’s going to be put on there in terms of improvements is going to be in the hundreds of millions of dollars,” Jeff Hudson, one of the two HM Commercial Group realtors who sold the property, told iNFOnews.ca today, Dec. 15.

“The really cool thing is that you’re going to see all sorts of economic impact. You’re going to see job creation. Once it’s fully built out, whatever the vision is – probably like a mixed use development – you’re talking about hundreds of millions of dollars. That benefits the community from a tax perspective.”

The site is at the corner of Bay Avenue and Ellis Street and is 3.96 acres with an 89,000 square foot building that was owned by B.C. Tree Fruits. It was built in 1946 and is near the foot of Knox Mountain.

It may be the largest real estate deal in Kelowna’s history.

“It’s a really large deal,” Hudson said. “It’s probably the largest deal we’ve done since we’ve been HM Commercial Group. I think there might be others but it’s certainly of significance.”

The sale of the Kirschner Mountain housing development was billed as the largest land transaction in Kelowna’s history when it sold for $22 million in January.

READ MORE: Sale of Kirschner Mountain for $22 million makes Okanagan history

The City of Kelowna has launched a planning process to “reimagine” the entire North End of downtown Kelowna with particular focus on the 40-acre Tolko site that abuts this property.

READ MORE: Kelowna moving quickly to plan redevelopment of Tolko mill site on Okanagan Lake

It’s too soon to speculate on what the future use of the Tolko and, now, Mission Group lands will be, Hudson said, but with that kind of investment for industrial land, it’s certainly going to be redeveloped.

“Those two sites together, it’s probably the best waterfront development opportunity in Canada,” Hudson said. “The only other one that rings a bell is some of the stuff that’s been developed in Toronto on the waterfront. Although I’m biased, I think this is better.”

Mission Group is a major developer in Kelowna with the Ella residential tower downtown and the three-tower Bernard Block currently under construction being the most visible. It’s also planning Aqua, three waterfront highrises of up to 17 storeys in the Mission area of Kelowna.

READ MORE: iN VIDEO: Three waterfront towers planned for Kelowna’s South Mission

The Mission Group, in a news release, said it has no immediate plans to redevelop the site and asked for interim tenants to contact HM Commercial Group if they're interested in using the building.

The B.C. Tree Fruits site was listed for sale for $20 million in the spring but sold for $23.75 million.

Last year, HM Realty Group (licenced with Macdonald Realty Kelowna) sold the B.C. Tree Fruits office building near City Hall for $7.5 million, which was $2.3 million above the asking price.

B.C. Tree Fruits is consolidating its operations with its main office now being in Lake Country.

READ MORE: Buyers are clamouring for this historic downtown Kelowna building

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