For Sale

6597, 6599 & 6601 Applecross Road & 6439 Portsmouth Road, Nanaimo BC

4 Rental Buildings | 137 Suites + 5 CRU | 5.22 Acre Land Parcel

The Offering

The CBRE National Apartment Group-BC has been retained by the Owner on an exclusive basis to offer a 100% interest in the Woodgrove Pines Apartments, comprising two separate properties consisting of 4 newer rental apartment buildings with a combined 137 suites and 5 commercial units on a large 5.22-acre land parcel in the heart of Nanaimo, British Columbia.

The subject property is prominently situated off the North Island Highway in the highly desirable Dover Bay Neighbourhood in North Nanaimo, British Columbia, one of Canada’s fastest growing municipalities. The subject property is just steps to an abundance of tenant-friendly amenities offered at the 748,000 sq. ft. grocery-anchored Woodgrove Shopping Centre, Vancouver Island’s largest shopping center. Woodgrove Pines is also within walking distance to Costco, a variety of retailers, shops, and services situated along the Island Highway, as well as a variety of schools, parks, and transit services.

This unique opportunity offers investors unique scale (137 suites + 5 CRU) providing both management and operational efficiencies. The rental complex as a whole is comprised predominantly of large 2-bedroom suites (65%) with efficient layouts that attract a broad cross-section of prospective tenants. One of the four rental buildings comprising both residential and commercial units is stratified, providing an investor the opportunity to sell off individual units in the future. In addition, CBRE has estimated that there is approximately a 55% + upside in the current rents blended throughout the buildings, which may be realized in the future by continuing with the current owner’s comprehensive and proven renovation program as units turn over.

Woodgrove Pines is an institutionally owned and managed rental complex that has benefited from several capital improvements in recent years, including renovations to approximately 34% of the units, updated building exteriors, newer roofs, lobby upgrades, landscaping upgrades, plumbing, boiler, and mechanical updates, just to name a few. These improvements will minimize a new Owner’s future capital requirements.

Further detailed information on this exceptional multi-family offering can be received by connecting with our team and requesting and executing a Confidentiality Agreement (the “CA”).

Investment Summary

4

Buildings

5.22 AC

Total Site Size

137+5 CRU

Total Suites

809 SF

Average Suite Size

Highlights

UNIQUE SCALE

Opportunity to acquire four rental apartment buildings comprising a combined 137 units + 5 CRU offers an investor unique scale providing both operational and management efficiencies.

EXCELLENT SUITE MIX

The subject property is predominantly comprised of large 2 bedroom units (65%) averaging over 809 square feet of rentable area, which is highly desirable and attracts a wide cross-section of prospective tenants.

PROVEN VALUE ADD STRATEGY

The current owner has renovated approximately 34% of the suites as units turned over and released them to the prevailing market rents. CBRE has estimated there is 55%+ in rental upside, providing a new owner with the opportunity to continue with the Vendor’s proven value-add leasing strategy to grow cash flow and yield.

REDUCED OPERATING EXPENDITURES

All suites comprise electric baseboard heat and three of the four buildings have rental suites with their own separate hot water tanks paid for by the tenants, reducing utility costs and overall operating expenses.

CENTRAL LOCATION

Prominently situated in the highly desirable Dover Bay Neighbourhood of North Nanaimo, within walking distance to the grocery-anchored Woodgrove Shopping Centre and an excellent cross-section of tenant-friendly amenities.

INSTITUTIONALLY MANAGED

The subject property has been institutionally owned and managed and has benefited from various capital improvements in recent years that will minimize a new owner’s future capital requirements.

LARGE LAND PARCEL

The properties combine to offer a large 5.22 acre land parcel currently designated as a “Secondary Urban Centre.” This designation supports typical building forms up to 12 storeys and up to 80 units per acre.

STRATIFIED UNITS

The Portsmouth Road building, which comprises 41 residential units and 5 CRU units, is separately titled and fully stratified, providing a new Owner with the opportunity to sell the individual units to maximize value in the future. (Condo Sales Avg $450/SF+)

Property Summary

Property Profile

The Woodgrove Pines Apartments comprises four rental apartment buildings with a combined 137 rental suites + 5 CRUs and are situated on two separate land parcels totaling 5.22 acres of land. 6597, 6599, and 6601 Applecross Road are comprised of three – 3 storey buildings that were constructed in 1989 and consist of 96 rental suites. 6439 Portsmouth Road is a separately titled three storey stratified building that was constructed in 1994 and consist of 41 rental suites and 5 commercial units.

All four buildings are of wood framed construction on slab and comprise a total of 170 surface parking stalls strategically located throughout the property. All suites are in a good state of repair, with approximately 34% of the suites having been fully renovated with modern finishes, including stainless steel appliances, and in some cases, a selection of suites enjoy in-suite laundry. Three of the four rental buildings are equipped with electric base board heat and separate hot water tanks paid for by the tenant. The stratified rental building is improved with electric baseboard heat paid for by the tenants, and domestic hot water is via gas-fired boiler. All suites throughout the property are comprised of either a deck or patio for tenant enjoyment. The properties large court yard design is unique and offers tenants with walkable paths and access to a communal pond and garden areas.

Rent Pricing & Suite Mix

Rental Upside

Suite Mix Breakdown

Property Photos

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Location Overview

Nanaimo, BC, also known as the “Harbour City”, is a rapidly growing city located mid-island on the east coast of Vancouver Island, approximately an hour and a half north of the Capital City of Victoria and just two hours from Vancouver via the Departure Bay Ferry Terminal. Nanaimo is a highly desirable place to live and work due to its proximity to major economic centers such as Victoria and Vancouver via ferry, seaplane, or car while still offering Vancouver Island’s natural beauty and lifestyle. The city is Canada’s fifth fastest-growing region with a population growth of over 10% in the last 5 years.

The Woodgrove Pines Apartments are located off the intersections of Applecross Road and Portsmouth Road in the highly desirable Dover Bay neighbourhood in North Nanaimo, adjacent to grocery anchored Costco Wholesale, steps from Woodgrove shopping centre and just 15 minutes from Downtown Nanaimo. The property’s convenient location right off the Island Highway, one of the busiest thoroughfares in Nanaimo, offers tenants easy access to transit, amenities, services, schools and ensures the property will continue to attract and retain high quality tenants.

Nanaimo is attractive to a wide range of tenants and investors and offers an excellent cross-section of tenant-friendly amenities such as Country Club Centre, Nanaimo North Town Centre, and the 748,000 SF Woodgrove Centre, Vancouver Island’s largest shopping Centre, all within a 10 minute drive from the Woodgrove Pines. Additionally, Nanaimo is home to Vancouver Island University (VIU), hiking trails, beaches and over 1,000 hectares of City parks.

Nanaimo Economic Highlights

  • The City of Nanaimo, also known as “The Harbour City”, is situated mid-island on the east coast of Vancouver Island and was the fastest-growing census metropolitan area on Vancouver Island and one of the top five fastest-growing communities in Canada over the past five years with a population in excess of 115,000 and a growth rate of over 10.3% between 2016-2021.
  • Nanaimo is especially attractive to newcomers due to the accessibility and prosperity, offering three ferry terminals connecting residents to the Lower Mainland and other communities on Vancouver Island. The prominent mid-island location provides for connection to all major economic hubs, benefiting the local economy.
  • Having adopted the concept of Doughnut Economics as a guiding principle for sustainable development, Nanaimo City Council officially implemented “Nanaimo Reimagined”, a 25-year framework designed to achieve five goals: a green Nanaimo, a connected Nanaimo, a healthy Nanaimo, an empowered Nanaimo and a prosperous Nanaimo.
  • The city capitalizes on its excellent harbour, which is used for trading, servicing, and distribution industries. The health, social services, and construction sectors also contribute largely to the city’s economic development.
  • In 2023, Nanaimo’s labour force consisted of 68,400 individuals. Nanaimo’s labour force growth rate over the year was 3.3%, surpassing both the 2.2% growth rate in BC and the 1.8% growth rate of the Vancouver Island Coast. The highest number of jobs in 2023 were posted by the Vancouver Island Health Authority, followed by Vancouver Island University and Lowe’s Canada.
  • The unemployment rate in 2023 was 4.8%, which is below the BC (5.2%) and Canadian National Averages (5.1%).

NANAIMO RENTAL MARKET & POPULATION GROWTH

Nanaimo consistently continues to rank as one of the strongest rental markets in Canada, with CMHC reporting 13% rent growth year-over-year. The Regional District of Nanaimo documents an increasing shortage of affordable rental and owned housing for those in low to moderate-income brackets. With Nanaimo being Canada’s fifth fastest growing region due to record high immigration combined with supply imbalances, this demonstrates a strong and positive outlook for the future of Nanaimo’s multifamily market fundamentals.

DOVER BAY NEIGHBOURHOOD

Dover Bay is regarded as one of Nanaimo’s safest and most attractive neighbourhoods, especially for families, thanks to its close proximity to an abundance of amenities like schools, parks, shopping centers and grocery stores. Situated in Northern Nanaimo, Dover Bay is within close proximity of popular family recreation spots, including several parks and beaches such as Mc Girr Sports Field, Blueback Park and Invermere Beach.

For more information contact
British Columbia’s Multi-Family Experts

Lance Coulson

Personal Real Estate Corporation
Executive Vice President
National Apartment Group – BC
CBRE Limited, Capital Markets
[email protected]
+1 604 662 5141

Greg Ambrose

Vice President
National Apartment Group – BC
CBRE Limited, Capital Markets
[email protected]
+1 604 662 5178

Sim Waraich

Transaction Manager
National Apartment Group – BC
CBRE Limited, Capital Markets
[email protected]
+1 604 662 5179