GRAYSON HOUSE APARTMENTS 2540 Quadra Street Victoria, BC FOR SALE LISTED PRICE $3,000,000 EXCEPTIONALLY WELL OPERATED AND CARED FOR 22-UNIT APARTMENT BUILDING LOCATED IN THE HEART OF VICTORIA S EMERGING QUADRA STREET VILLAGE CONTACT DAVID VENANCE FOR FURTHER DETAILS David Venance Personal Real Estate Corporation 604-264-5752 david@billgooldrealty.com Selling Apartment Buildings as if they were our own! RE/MAX Bill Goold Realty www.billgooldrealty.com 410 North Tower, 650 West 41 st Avenue Vancouver, BC V5Z 2M9 Each office independently owned and operated. The information contained herein has been obtained from sources deemed reliable. While we have no reason to doubt its accuracy, we do not guarantee it. It is your responsibility to independently confirm its accuracy and completeness.
PROPERTY SUMMARY CIVIC ADDRESS 2540 Quadra Street Victoria, V8T 4E2 NEIGHBORHOOD Hillside/Quadra LEGAL DESCRIPTION Lot 01 Plan VIP19600 Section 4 Land District 57 PROPERTY IDENTIFIER 001-076-931 SUITE MIX 5 Bachelor 17 One Bedroom 22 Residential units *Two (2) of the 1-BDRM units are unauthorized ZONING Multifamily Apartment Block LOT SIZE 13,323 sq.ft. YEAR BUILT 1967 PROPERTY TAXES 2014 $15,516 ASSESSMENT 2014 Land $ 791,000 Improvements $1,598,000 Total $2,389,000 THE OPPORTUNITY This offering represents an opportunity to purchase 100% freehold interest in Grayson House Apartments, a four storey, wood frame multi-family building in the heart of Victoria's hip and emerging Quadra Street Village. Built in 1967 and comprising 22 units, this property is a testament to 'pride of ownership'. It has been owner operated for the last 22 years, and as it's curb appeal would suggest, it is in excellent condition. Rarely, does an apartment of this quality, and managed with so much personal care and attention, come available. LOCATION Located in the Hillside/Quadra Neighbourhood of Victoria, Grayson House Apartments fronts Quadra Street mid-block between Kings Road the Bay Street offering easy access to the Patricia Bay Highway. Residents of Grayson House are within a one block walking distance of a variety of amenities including: grocery stores; unique and charming cafes; a myriad of restaurants; a liquor store; a movie theatre; medical/dental and other professional services; and, several other sundry and complementary retail services all located in the Quadra Street Village. Although downtown Victoria is only 15 minutes on foot, public transportation accessible on Quadra Street, provides convenient travel to the downtown core and to the many other eclectic neighbourhoods that make up greater Victoria.
BUILDING DESCRIPTION BUILDING DESCRIPTION Constructed in 1967, Grayson House Apartments is a well-managed, well-maintained four storey, woodframed, walk-up apartment building, comprising 22 units ranging from 400 sf to 700 sf. The torch on roof with a 15 year guarantee, was installed in 2003. In 2006 the stucco exterior was professionally repainted. The surrounding grounds are beautifully landscaped; irrigation is supplied by an automatic sprinkler system. There is an 18 stall surface parking lot, accessible from the rear lane, which was resealed, number designated, and relined in 2013. The mechanical room, located in the basement, houses a 100 gallon gas-fired A.O Smith Hot Water Tank and recirculating pump, both installed in 2008. Also in the basement, are two well lit storage rooms, and a secure bike locker accessible to all tenants. All windows in the building were replaced with energy efficient Thermo pane windows in 2013. Throughout the building heat is supplied by electric baseboard heaters. Visitor access to the building is by way of a closed circuit intercom system replaced in 2008. The front entry houses an island of stainless steel mailboxes and a small management office. The common areas have been outfitted with: modern Power Smart light fixtures; new paint; and in 2014, new carpet. The common laundry room is supplied with two coin operated washers and dryers owned by the building. All units had existing appliances replaced with new white fridges and stoves in 2013. Flooring in all units is hard-surfaced. Three units have laminate and 19 having Oak hardwood. Kitchens and bathrooms contain ceramic tile. Most units have venetian blind window coverings. INVESTMENT HIGHLIGHTS Located in Hillside/Quadra neighbourhood, providing convenient access to amenities and public transportation. The Property is in excellent condition, has great curb appeal and offers ample surface parking. Several building upgrades have been completed over the last 7 years. The Property rarely has a vacancy and attracts a high calibre of tenant. Tenants pay their own heating costs reducing operating costs to the owner. Very attractive financing due to historically low mortgage rates.
FINANCIAL SUMMARY REVENUE ANNUALLY $ PER UNIT ANNUALLY Stabilized NOI Projection [4] Rental Revenue Laundry Revenue [1] Parking & Storage Revenue $197,760 $3,168 $211,800 $3,168 $5,400 [5] Potential Gross Revenue (PGR) Less: Vacancy Allowance (0.50%) $200,928 ($1,005) $9,133 ($46) $220,368 ($1,102) EFFECTIVE GROSS REVENUE (EGR) $199,923 $9,087 $219,266 OPERATING EXPENSES % OF EGR % OF EGR Property Taxes (2014) Insurance Utilities: Electricity Utilities: Water & Sewer Utilities: Gas Licence Caretaker [2] Advertising Garbage & Recycling Repair & Maintenance [3] $15,516 $7,131 $1,760 $5,830 $4,880 $319 $47 $1,325 $16,500 $705 $324 $80 $265 $222 $15 $2 $60 $750 7.76% 3.57% 0.88% 2.92% 2.44% 0.16% 0.00% 0.02% 0.66% 8.25% $15,516 $7,131 $1,760 $5,830 $4,880 $319 $47 $1,325 $16,500 7.76% 3.57% 0.88% 2.96% 2.48% 0.16% 0.00% 0.02% 0.66% 8.25% TOTAL OPERATING EXPENSES $53,308 $2,423 26.66% $53,308 26.66% NET INCOME OPERATING INCOME $146,615 $165,958 [1] We have estimated the laundry to be $12 / unit / month [2] The building is owner managed so there is no caretaker expense accounted for [3] R & M expense is stabilized to $750 / unit / year [4] Stabilized NOI projection is based on realizing market rents and charging $25 / parking stall [5] Stabilized parking is based on realizing $25 / stall / month which is what some surrounding buildings command for surface stalls PRICE CAP RATE % $ PER UNIT $ PER ROOM POTENTIAL YIELD POTENTIAL YIELD GROWTH $3,000,000 4.75% $136,364 $49,000 5.53% +0.78%
MARKET OVERVIEW Subject Property Bay St. Quadra St. Perched on the southern tip of Vancouver Island, the city of Victoria is the capital of British Columbia, with the Legislature Building located in the inner harbour. Close to 83,000 people call Victoria home. It is the economic and entertainment centre for the Capital Region s 350,000 residents. Due to its mild climate and spectacular outdoor setting it is an international destination servicing more than 3.5M visitors each year. Tourism which brings about $1B in revenue annually; the University of Victoria which boasts 21,000 enrollments, many of which are international students, and 2000 faculty members; a $7.3B program for ship building and ship repair for the Royal Canadian Navy and the BC Ferries fleet; and the tech sector, which employs about 15,000 people directly in Greater Victoria are the main economic drivers. Foreign investors, specifically Asian based, are looking for a safe and secure home for their investment dollars; Victoria and Vancouver Island are areas of growing interest. Apartment buildings, with their steady and secure income, and low vacancy rates are a very viable investment alternative capturing the interest of those investors. The lack of good quality apartment product combined with historically low mortgage rates, and increasing demand is driving the price of apartments upwards. Cap rates are being compressed. BC is expected to outperform most other provinces this year. GDP expected to increase by 3%.
AREA OVERVIEW 06, 17, 10, 04 Restaurants Bars Coffee Shops Ulla Restaurant Boston Pizza Subway Sandwiches & Salads Poutine 66 Groceries Fairway Market Mount Royal Bagel Quadra Village Foods Ltd. Shopping Hillside Centre The Bay Centre Parks Beacon Hill Park Topaz Park Wark Street Commons Entertainment Schools Royal BC Museum Cineplex Odeon Victoria Imax UVIC Vancouver Island School of Art Walk Score Methodology: Walk Score measures the walkability of any address. For each address, Walk Score analyzes hundreds of walking routes to nearby amenities. Points are awarded based on the distance to amenities in each category. Walk scores are based out of 100. (All information courtesy of www.walkscore.com)