Case Study - Park Towers

June 12, 2018

Assignment

The Vendor engaged the Avison Young Multi-Family Team to market 5815 Yew St in Vancouver, BC (“Park Towers”) for sale. Park Towers is a first class 83-unit concrete high-rise rental apartment building in one of Vancouver’s most affluent neighbourhoods, Kerrisdale. In the past year the Vendor initiated a renovation program, renovating the residential units as they became vacant and deriving significant rental lifts. At the time of sale only 18 of the 83 units had been renovated.

Avison Young Approach

Avison Young prepared best in class marketing materials for the property which included a professional video and photographs of the building, a four page brochure, and a detailed Confidential Information Memorandum outlining all the information relating to the market and property. In order to justify the lowest possible cap rate, Avison Young emphasized and demonstrated the financial upside of continuing the renovation program. Avison Young created an expansive marketing strategy whereby no list price was assigned and a modified bid process was held. In order to generate strong interest and create a competitive offering environment, the property was widely marketed nationally and internationally.

Result

Significant interest was generated and multiple offers were received which created a very competitive environment. Avison Young strategically negotiated the entire offering process and vetted all prospective purchasers to ensure they were qualified and capable of closing. As a result, the Vendor accepted an offer with minimal conditions and a very short conditional period. Accordingly, Avison Young was able to maximize the sale proceeds and exceed the Vendor’s expectations at every level.

Key project Statistics

14-storey Multi-Family rental apartment building
Originally built in 1965
85 residential units
Situated on a large lot with 264 feet of frontage
33,053 sf lot
Extensive upgrades completed to the building
Renovation program in place
18/83 units had been renovated with significant rental lifts
Stunning views of the lower mainland