The sale of an older eight-unit Kitsilano rental apartment building has set a record price of more than $628,000 per suite.
NAI Commercial sold the apartment building on Cornwall Avenue in Kitsilano this month for $5,025,000. That works out to $628,125 per apartment. The capitalization rate is 3%, according to Terrry Harding of NAI, who was involved in brokering the sale.
Harding said he was not surprised at the price, since the property was in excellent condition, despite its age.
NAI recently sold an even older 20-unit rental building on Cornwall Avenue for $425,000 per door and a nine-unit rental building on Point Grey Road, "that needed a complete renovation" for $588,000 per door. NAI is just closing on a 14-unit building in New Westminster at $140,000 per door, which Harding said is high for that market.
Last year 33 apartment buildings sold, down from 43 a year earlier, according to study from CBRE Commercial. The average price paid in 2013 was $11.8 million per building. Sales continue to track down this year, but Harding argues that the only reason that sales have slowed is "no one wants to sell. The only time you see a listing is when an owner wants to retire."
