$46 million for this Kelowna industrial site – but it comes with a weird catch | iNFOnews | Thompson-Okanagan's News Source

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$46 million for this Kelowna industrial site – but it comes with a weird catch

This industrial site in Kelowna is packaged with four others in B.C. for $46 million.
Image Credit: Submitted/MCL Real Estate Group

Industrial land in Kelowna is in short supply, so there should be quite a bit of interest in a 3.1-acre piece of industrial land and building near the City of Kelowna’s public works yard on Hardy Street that just came on the market.

The catch is, in order to get it, a new owner has to buy a whole portfolio of five industrial properties in Coquitlam, Castlegar and Terrace with a combined price tag of $46 million.

“My mandate is to find a good qualified buyer for the whole portfolio,” Kris McLaughlin, senior commercial specialist with the MCL Real Estate Group – RE/MAX Kelowna, told iNFOnews.ca. “We’ve had good interest so far.”

While land assemblies are common in Kelowna with developers buying up a few houses in order to put up apartment buildings, a multi-city deal is not that common on the residential side of things.

But, in the commercial and industrial markets, it’s not all that unusual, McLaughlin said.

“The industrial property market in B.C. remains the strongest asset class, where shortages of inventory and high demand continue to headline the news,” an MCL Real Estate Group news release says. “Market trends include strong industrial demand, increased competition for key properties, sales prices near historic highs and rental rates that have pushed past $20/sq.ft. in the Lower Mainland.”

READ MORE: Two highrise towers planned for landmark Kelowna church site on Highway 97

In all, the five properties total 12.2 acres with 78,871 square feet. All are 100% leased and all have enough land that they can be expanded or redeveloped.

“The current single building (at 1505 Hardy St. in Kelowna) is not the highest and best use for that property,” McLaughlin said. “In my mind, it’s either going to get fully redeveloped or somebody’s going to tack on another building on the back end or just purchase it and sit on it as it is.”

The building, whose tenants include Dakota Towing and Consolidated Supply, is 21,540 square feet. The current zoning allows for up to 203,272 square feet and three storeys.

The other properties in the portfolio include 2.76 acres with 30,257 square feet of space on United Boulevard in Coquitlam, a 5.52 acre site with 19,328 square feet of space in Terrace and two parcels totalling .63 acres and 7,746 square feet in Castlegar.

See the full listing here.

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