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27 SASKATOONHITS OVERDRIVE“Saskaboom” developers gun into the fast lane
$ 4 . 2 9 M A Y 2 0 1 2 V o l . 2 7 / I s s u e 5INTERIOR B.C. • ALBERTA • SASKATCHEWAN • MANITOBA SECTION
7 GET BACK TO THE OKANAGANOld inventory eaten up as buyers feast on recreational bargains
13 INVEST 101:FINDING MONEYHow to get backing when banks get tough and cash-flow slows
17 HELLUVA FUTURE IN ‘HATMedicine Hat was well prepared for plunge in its natural gas prices
▲
Paul Leier, Cavailier Enterprises, in Saskatoon’s first luxury hotel: “this city has changed forever.”
PUBLICATIONS MAIL AGREEMENT 40069240
RETURN UNDELIVERABLE CANADIAN ADDRESSES TO CIRCULATION DEPARTMENT:
102 EAST 4TH AVENUE, VANCOUVER, B.C. V5T 1G2
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RIVERBEN
D - 760 M
AYFAIR ST
Kamloops, BC
411 Brink St. FOR SA
LEA
shcroft, BC
For Sale
For Sale or
LeaseBU
SINESS O
PP
OR
TUN
ITIES INC
LUD
E:Entertainm
ent Facility, Medical O
ffice,
Professional, Personal, Health Services, C
omm
unity Care Facility
SALE PR
ICE
LOT A
1,937 sq.ft: $387,400$242,000
$721,600
LEASE R
ATE
e net
UN
TAP
PED
PO
TENTIA
L!
Possible to add 4-6 residential units to increase annual income
$219,000
LIFESTYLE PROPERTIES
SPECIAL SECTION • A13
B2 Interior British Columbia www.westerninvestor.com MAY 2012 WESTERN INVESTOR
www.sopasquare.comMIKE GEDDES*
SOPA SQUARE
List Price: $2,900,000
MULTI TENANT INDUSTRIAL PENTICTON
List Price: $10 M & $5.5 M
DEVELOPMENT SITEKELOWNA NORTH
Reduced to: $1,695,000Highway 97 @ 43rd Avenue, Vancouver
JEFF HUDSON* www.bcip.ca
DOWNTOWN VERNON
List Price: $15,000,000Chad Biafore & Marshall McAnerney*
HYDE MOUNTAIN GOLF COURSE
List Price: $1,175,000
247 BRIDGE STREET, PRINCETON
List Price: $2,690,000
230 CARION ROAD, WINFIELD
List Price: $1,895,000
KAMLOOPS WAREHOUSE
List Price: $5,950,000
955 TIMMINS STREET, PENTICTON
JACK SHABBITS & ERIC WEBER*
Indoor Car & Truck Wash w/ C-Store
1940 UNDERHILL ( SCHOOL DISTRICT 23 KELOWNA )
List Price: $6,900,000
DOWNTOWN KELOWNAMULTI FAMILY DEVELOPMENT SITE
List Price: $1,700,000
Colliers InternationalCentre GroupCommercial RealtyKelowna, B.C.250.763.2300
www.colliers.com/kelowna
Colliers InternationalCentre Group Real Estate ServicesKamloops, B.C.250.372.7000
OKANAGAN BEST WESTERN
$ 3,300,000
SOUTHERN ALBERTA
$ 4,100,000
RAMADA
$ 3,249,000
TREMENDOUS RESORT
$ 2,200,000
OKANAGAN LIQUOR STORE
$ 999,000
MOTELS
$ 219,000
$ 599,000
$ 779,000
$ 695,000
$ 499,000
$ 498,000
$ 490,000
$ 519,000
$ 439,900
$ 899,000
$ 1,200,000
$ 1,275,000
OKANAGAN GROCERY
$ 529,000!
REVELSTOKE
$ 895,000!
MOBILE HOME PARK
$ 649,000
OKANAGAN LIQUOR STORE
$ 2,475,000
VERNON B.C.
$ 1,228,000
To view photos on these and other opportunities visit our website www.syberrealty.com
:eciffO 250-862-8100 Fax: 250-984-0803
MOTEL, HOTEL & BUSINESS CONSULTANTS MEMBER of the Canadian I.C. & I Council
201-1449 St . Paul St., Kelowna, B.C. V1Y 2E5
Syd Berisoff Agent/Broker
Larry BerisoffAssociate Broker
Jody L. Miller
[email protected] Real Estate Corporation
McLaughlin Commercial Group - RE/MAX Commercial - RE/MAX Kelowna
20+ YEARS OPERATING RESTAURANTWEST KELOWNA, B.C.
Turn-key location available. Highway frontage and great exposure. Dining room
has approx. 40 seats. Equipment and inventory are included within the price!
Asking: $39,900.00 + HST MLS®
PRIME DEVELOPMENT SITES WINFIELD TOWN CENTRE
FULLY SERVICED & READY TO BUILD
2.93 Acres - Lots 1 & 2 $ 3,399,000 1.31 Acres - Lot 1 $ 1,699,000 1.62 Acres - Lot 2 $ 1,699,000 0.90 Acres - Lot 3 $ 1,000,000 2.67 Acres - Lot 4 $ 3,250,000
6.5 Acres – Asking: $6,500,000,00 + HST
MLS®
(Plus DLC – Latecomer Charges)
APPROXIMATELY 115.68 ACRESLAND ASSEMBLY IN NORTH GLENMORE/
UNIVERSITY DISTRICT
Minutes from Kelowna’s International Airport. One side abuts golf course in Quail Ridge.
Gravel Pit is a permitted use!
70.80 Acres - Lot D $5,318,000 15.63 Acres - Lot 1 $1,315,800 11.62 Acres - Lot 9 $ 962,200 9.10 Acres - Lot 10 $ 773,500 8.98 Acres - Lot 8 $ 763,300
This assembly comprises 5 lots that can be purchased individually or as a complete
package.
Asking: $9,132,800.00 MLS®
SEARS WEST KELOWNA LOCATION
Gorgeous, new 12,000 SF distribution and highway exposure location. Turn-key pack-age available with one of the best names in the business. Inventory is paid for by Sears and therefore there are no inventory costs!
Asking: $325,000.00 + HSTExclusive Listing
Ken McLaughlin, B.Comm. - 250.870.7845
LEASE OFFERINGS INDUSTRIAL
- Kelowna 1,569 - 7,295 SF New Tilt-Up - West Kelowna
RETAIL/OFFICE - Kelowna 1,990 SF Downtown Kelowna
- West Kelowna 1,100 - 3,300 SF Main Floor Shell Units - Vernon - Lake Country
SERVICE COMMERCIAL - Kelowna
WEST KELOWNA INDUSTRIALLAND & BUILDING FOR LEASE
Approx. 6,000 SF building footprint.Approx. 1.22 acres with the ability for outdoor
storage. 4 x 10’x14’ Overhead doors, 600
reception area, and washrooms.
Asking: $5,000.00 per Month + HST & NNN
NORTH GLENMORE COMMERCIAL DEVELOPMENT OPPORTUNITY
Approx. 3.32 acres with C9 zoning. Currently being operated as a mobile home
residences. Neighbouring proposed Glenmore Rd. to UBCO bypass.
Asking: $3,300,000.00 Exclusive
INDUSTRIAL STRATA UNIT AVAILABLE
SF on the mezzanine level.Zoned I2. 2 Exclusive loading docks and 1 -
10’x14’ overhead door. Multiple improvements already in place!
Asking: $355,000.00 + HST MLS®
SERVICE COMMERCIAL STRATA UNIT
Located near Reid’s Corner and 5 minutes away from Kelowna’s International Airport.
Zoned C10. Approx. 1,700 SF with multiple
boardroom. 1 x 14’x12’ Overhead door.
Asking: $299,900.00 plus HST MLS®
Your First & Last Call!
Kris McLaughlin - 250.870.2165
PENDING
PENDING
6 0 4 - 6 6 9 - 8 5 0 0 o r 1 - 8 0 0 - 6 6 1 - 6 9 8 8 f a x : 6 0 4 - 6 6 9 - 2 1 5 4 i n f o @ we s t e r n i n ve s t o r. c o m w w w. w e s t e r n i n v e s t o r . c o m 1 0 2 E a s t 4 t h A v e n u e , Va n c o u v e r , B . C . V 5 T 1 G 2
FEATURES27
Chic “The James” is first luxury hotel in boomtown
7 Old condo inventory fire-saled to make way for future
Download a PDF of all our Regional Roundups online at www.westerninvestor.com
17 Medicine Hat moves past plunge in natural gas prices
COLUMNS11 13 23 30
On the coverPaul Leier, president of Cavalier Enterprises, relaxes in Saskatoon’s first boutique luxury hotel, The James. Photo: Cindy Moleski
2–11
12–26
27–30
31
LIFESTYLE PROPERTIES
B4 Interior British Columbia www.westerninvestor.com MAY 2012 WESTERN INVESTOR
www.premierhotelsandmotels.com
Super 8 Motel 40 units, 27 built in 06, 13 older rms complete Reno. Built above stan-dards with 2 bedrooms, L/Q, and a private deck. Office with breakfast area. Variety of rooms some with full kit all with queen or king beds. Built above standard. Hard wired. $4.2M The Oldest Working Guest Ranch in Canada was on the trail to the gold rush and has the log buildings to prove it. Situated on the banks of Green Lake, BC. The heart of the ranch consists of “old west” style log accommodations plus a new main lodge built in 2010, and other log buildings house the saloon, theatre, general store, 25 guest cabins, museum, jail, blacksmith shop, workshop, barns and hay shed. Very good numbers. Call for details 20 Room 4 Star Resort with full service 75 seat log restaurant, putting green golf course, situated on 60 acres overlooking Kootenay Lake. Balfour Golf and Country club locat-ed adjacent to the Resort. Breath taking views of the mountains and lake from your private balcony and the restaurant patio. Becoming known as the place to hold your wedding in the Kootenays. Asking $2.5M Great starter, 15 Unit Motel on .62 acre with 2 bdrm living quarters in desirable sunny south Okanagan area called Penticton. this property has on going upgrades. It is situated next to a medium rise condo project, which offers all kinds of possibilities. This 72 Room Motel is large enough to be franchised. Newly renovated pool and 4700sq ft 180 seat restaurant with many upgrades which makes this an ideal stop over for the Bus tour industry and travellers. Below Appraisal Six year old attractive 6000 sq ft Concrete Block Building with National tenant. Building sits on 0.61 acres with private paved parking lot. Great Okanagan investment with national tenant and trouble free T/Net lease. Price $869,000 Clinton, BC 4 acre, 26 bay mobile home park can be increased to 27 bays. Approximately 30 years old with all services underground including municipal water and sewer. 26 pads are rented as of May 1, 2012. Asking $474,000
Kamloops 30 Units In Two Buildings also separate office with large living quarters. Outdoor pool property in good shape. Asking $1.7M
Jerry Dombowsky 1 877 717 1886Premier Canadian Properties
DEVELOPMENTAL LAND AND
GOLF COURSE FOR SALEIN THE BEAUTIFUL
BC INTERIOR
162 Acres 9-Hole Golf Course Club House Residence Trades Considered
BEST-WEST REALTY LTD.250.554.4511
Dwight Vos250.371.7992
Tracy Mackenzie250.318.2938
PRICE REDUCED
BUSINESS AND INVESTMENT OPPORTUNITIES
– Suitable for investor or owner/operator. Includes land & buildings.
– 9 bedrooms, 7 bathrooms on spacious lot. Built in 2008. Has all amenities needed. Well-priced at
– 6100 sf bldg. Large yard – 2 Tenants – 8.5% Cap – Future Highrise expansion
– Hwy Frontage – Secure Yard
COMMERCIAL BUILDINGS
DWIGHT VOSphone: (250) 554-4511
toll free: 1-866-456-0577 BEST-WEST REALTY LTD. KAMLOOPS
email: [email protected]
REDUCED TO $799,000 (sold in 2007 for $1,000,000)
Approx mortgage payment on $520,000 is < $3,000/mo.
Sicamous, BCMulti-Unit Residential
Email: [email protected] orcall: 1-800-658-2345
* Financing available O.A.C.
Done Deals editorial feature will highlight deal flow in Western Canada.
Show the market what is moving and who is moving it. The monthly report will highlight major (basically 50K square feet or more; or land deals of $2 million or more) commercial real estate transactions that have closed within the last 30-45 days in Western Canada.
www.westerninvestor.com 1-800-661-6988
Please send us the following information:
FRANK O'BRIEN Editor
Please forward this information directly toFrank O’Brien, Western Investor Editor at [email protected].
DONE DEALS
14 apartment condominiums to be built to complete the 38-unit Valley Vista on a two-acre sloping property. Excellent view of Shuswap Lake from one side, forest on the other. One-bedroom, 600 sq. ft., two four-plexes and a six-plex. Some suites are level entry. Can be rented. Quiet pets welcome. Modulars built by SRI Homes in Kelowna. Foundations are ready and waiting for the two four-plexes. All services and driveways are in.
SALMON ARM, B.C.Reduced to $459,000
SALLY SCALES [email protected] or 250-833-2129
Call the
marketing your franchise?
1-800-661-6988
(604) 669-8500
westerninvestor.com
SELL1-800-661-6988
Selling your business? Western Investor Business Opportunity pages
are organized geographically so read-ers can find the opportunity they want.
WESTERN INVESTOR MAY 2012 www.westerninvestor.com Interior B.C./Business Opportunities B5
Well maintained, 12 year old, privately owned arena centrally located in the Tournament Capital of Canada. With a fully licensed and established lounge, this rink is exposed to thousands of registered youth and adult hockey/fi gure skaters. This is a turnkey operati on awaiti ng a passionate owner/operator. The facility runs at near capacity during lucrati ve peak/winter season, as well as yielding year-round revenue during summer camp and tournament programming. An extensive list of assets will be available for both lounge and rink on request.
Call: 250-377-4282 or Email: [email protected]
For Sale
Located in the heart of Radium Hot Springs. Comes with attached 2 storey living quarters. Over $250,000 spent on renovations in the last year.Owner will finance with $350,000 down payment.
Contact: BILL [email protected]
250-347-2439
20 Room Motel
$750,000
$1.6 Million101 North Star Road, Quesnel, BCLooking for a life change? This is a rare opportunity to own this popular Gold’s Gym franchise and property located in the growing City of Quesnel. This is a well established and profitable business operating since 1986. Entrepreneur’s franchise 500 Magazine has ranked Gold’s Gym in the top 100 franchises in the world for the last five years. 12,000 square foot building built new in 2007 on an one acre property. Property is assessed at over $950,000, business includes over $600,000 in equipment.
GOLD’S GYM FOR SALEBusiness and Property
604.435.9477
FABULOUS BUSINESS OPPORTUNITY• Showing sales over 2 million• Long established & growing pool business• Prime location! Huge chemical sales, installation
& maintenance of pools & hot tubs, opening/closing of pools
Fantastic business, 1st time offered for sale!1st class operation!
Exclusively offered by DINO GINIPERSONAL REAL ESTATE CORPORATIONRealty Executives of the OkanaganEmail: [email protected]
250-861-5122
OKANAGAN – B .C . INTER IOR I N V E S T M E N T O P P O R T U N I T I E S
VADIM KOBASEWC O M M E R C I A L R E A L E S TAT E S P E C I A L I S T
250-492-2233 / 1-800-567-6770RE/MAX FRONT STREET REALTY, PENTICTON, B.C.
CHRISTINA LAKE CAMPGROUND
75 Sites with Full & Partial Services4.91 Acre Nicely Treed PropertyClose to large public beachEasy access off Highway 3Full facilities including poolExceptionally well maintainedOperates May 1 to September 15Perfect for semi retired coupleAsking Price $699,000
Option 1 Business Only Lease Land & Buildings9.5% Rate of Return Asking Price $1,899,000
Option 2 Business plus Land & Buildings. 7.7% Rate of Return Asking Price $4,199,000
VERNON SELF STORAGE BUSINESS OPPORTUNITYYOUR CHOICE OF TWO PURCHASE OPTIONS
PRIME FARM-HOLDING LANDOSOYOOS
exposure l Highway 3 frontage
agritourism businessAsking Price $1,695,000
DEVELOPMENT SITEDUPLEX - SINGLE FAMILY
GRAND FORKS
Zoned for single family or duplex lots Civil engineering done for 9 lot single family subdivisionAsking Price $299,000
FIRST TIME ON THE MARKET IN OVER 20 YEARS !
Town Homes with Storage…for all your Toys!Lakeshore Drive, Osoyoos - Only 5 Homes Left
BUSINESS FOR SALE NEAR CHASE, BCEstablished October 2010
A unique shavings mill business manufacturing premium quality shavings from BC’s surplus pine. The material is compressed into industrial sized packages and is widely distributed. Supply agreements pending. Owner is ready to sell. Business has had strong sales since the first of the year. Turnkey operation.
$700,000 and take over financing. Excellent time to enter!
Ron at 250.804.3305
(250) 231-5222 (CELL)
(250) 368-5508 (FAX)www.cbcworldwide.com www.coldwellbankertrail.com
COLDWELL BANKER COMMERCIAL WORLDWIDE
HOTEL, LIQUOR STORE, RESTAURANT $499,000
COURT ORDER SALE
DRY CLEANER $89,000NICELY EQUIPPED.
THE ONLY ONE IN THE CITY.
LIGHT INDUSTRIAL BLDG $425,000
4 LARGE LOADING DOORS. OFFICES & MEZZANINE.
DEV. PROPERTY $595,000
600 FT OF HWY FRONTAGE FOR AUTO DEALER & BODY SHOP.
FURNITURE AND APPLIANCE BUSINESS
INCLUDING 35,000 SQ FT BUILDING,
PRIME LOCATION, OWNERS WANT TO RETIRE
$1,995,000
1ST TRAIL REAL ESTATE LTD.
MIDWAY STORAGE
$1,290,000NICELY LOCATED
EXCELLENT SHAPE100% FULL
GREAT SELECTION OF TENANTS
MILANOS PIZZA $169,000THIS TAKEOUT IS ESTIMATING
"400,000" IN 2012.QUALITY INN 48 ROOMS
RESTAURANT$2,190,000
NICELY LOCATED AT THE CROSSROADS OF
THE KOOTENAYS.GOOD VOLUME.
TRAIL MOTELMH + RV PARK
$895,000THIS IS A GREAT OPPORTUNITY WITH VERY
STEADY INCOME.
GREAT BUSINESS
LARGE CONSTRUCTION PROJECTS
B6 Interior British Columbia www.westerninvestor.com MAY 2012 WESTERN INVESTOR
OSOYOOS
COMMERCIAL INVESTMENT VINEYARD - SPECTACULAR VIEWS
CELL: 250.498.9886 TF: 866.495.7441www.allantaylor.ca [email protected]
RE/MAX REALTY SOLUTIONS
OSOYOOS
Incredible ViewsCorner Lot
$469,000 $2,388,000
COMMERCIAL BUILDING 6-BAY WAREHOUSE
Lakefront Lake Views
$799,000 $845,000
PROFITABLE BUSINESS GREAT OPPORTUNITY
2 Business in 1 Lakeshore Drive
$230,000 $2,995,000
ALLAN TAYLORALLAN TAYLOR
LAKESHORE LOT• $1,200,000• Sloping Lakeshore lot on quiet no thru street• 150 ft. licenced dock (2008)• Ideal spot located on Okanagan Lake• www.okanaganlands.com
COLD WINE AND BEER STORE• $1,500,000• Lumby’s only private wine, beer and liquor store• Good location• Room for expansion of store or other service
retail development• Excellent investment showing stable long
term sales• Contact Norm Brenner at 250-549-9401• More details at www.okanaganlands.com
PUB • $800,000• Highly visible highway location• Lumby’s only privately owned pub• Licensed to seat 127• Ideal for family business• Dormant wine and beer store license may be
purchased separately• Well managed and in above average condition• More details at www.okanaganlands.com
LAKESHORE ESTATE LOT• $1,600,000• Spectacular 21 acre lake shore estate lot
overlooking Kalamalka Lake.• Private boat moorage and Boltess Creek
running through the property.• Call Norm Brenner for all the details:
250-549-9401• www.okanaganlands.com
LAKESHORE ESTATE LOT• $1,750,000 • 7.9 acre lakeshore estate property.• Fantastic view overlooking Kalamalka Lake.
Moorage in place.• Located in area of other estate properties.• 30 mins to Kelowna airport. 10 mins to Predator
Ridge Golf Course.• Contact Norm Brenner for details
250-549-9401 or go to www.okanaganlands.com
NORM BRENNER PERSONAL REAL ESTATE CORPORATION
www.okanaganlands.com
K A M L O O P S B C Building/Land Opportunity
Ken McClellandRE/MAX Kamloops
www.keninkamloops.com
Hurry on this building and land in an excellent location across from a major Kamloops retailer. 37000 sq. ft. lot with great parking, 12,000 ft. main plus 5000 ft. up, comprehensive C-6 zoning allows many uses, priced for quick sale at $899,000, currently vacant.
3000sqft main floor commercial space and two partially finished residential suites upstairs waiting for someone to finish the renovations. MLS K4100066
Commercial building in the heart of downtown Fernie, BC
$588,000$588,000
Abe Martens RE/MAX Elk Valley 250-430-1070
O K A N A G A N O P P O RT U N I T I E S
Cell: 250-864-9140 Toll: 1-800-367-3339 [email protected] www.timdown.caRE/MAX Kelowna Westside
Tim Down AACI, P. App, CAE, RI(BC)"Professionalism You Can Trust"
Investment PropertiesAcreages Court Ordered Sales
“Representing Buyers looking for Apartment, Manufactured Home Park and Mini-Warehouse Properties”
S I C A M O U S , B C1/2 Acre lot on Shuswap Lake at Sicamous, B.C. 3700 sq. ft. house with 4 bedrooms, 2 baths, sauna, 4000 sq.ft. of deck, double
detached garage and double carport, beautiful location and landscape, with private boat dock. Offered for $ 925,000.00 Fully furnished as well.
Thiry Kelemen 780-831-8804 [email protected]
For Further Information and Details, Call
RE/MAX GRANDE PRAIRIE
WESTERN INVESTOR MAY 2012 www.westerninvestor.com B7
Vernon B.C. Investment Opportunity
Phone: (250) 307-3737 [email protected]
Brand New Quality Built 2 & 3 Bedroom Luxury Condos
Ready for Possession Life is good at
Starting $214,900
For full details contact:
ROSS PRIEST (Owners’ Consultant)
(250) [email protected]
One of Southeast BC’s Most Successful Family Owned & Operated Dining In & Catering
Will Sell Building as an option6500 Sq Ft Modern Building
FAMILY RESTAURANT
BUSINESS FOR SALE
East Kootenay, BC$1,200,000
REGIONAL ROUNDUP End of HST sparks recreational revival in Kelowna and across Central Okanagan
Please see Confidence page B8
SUSAN M. BOYCE
WESTERN INVESTOR
ometimes called the “Land of Peaches and Beaches,” the Central Okanagan is home to a thriving wine
industry, a diverse array of four-season recre-ational opportunities and a temperate climate blessed with plenty of sunshine. Small won-der generation after generation has consid-ered this part of British Columbia a vacation wonderland.
Although hard hit by the economic downturn of 2007-08, today Kelowna and the Central Okanagan are claiming a renewed sense of optimism; and, while some industry insiders temper it to “a cautious optimism,” many are clearly excited and enthusiastic about the year ahead.
“In 2010 the City of Kelowna undertook a comparative study of 15 major cities, and Kelowna not only came in second in the num-ber of building permits issued but, more impor-tantly, we came in second in the dollar value of permits issued,” said Corie Griffiths, business development officer for the Central Okanagan Economic Development Commission.
“The Canadian Federation of Independent Business also named us the number one place for entrepreneurs in B.C. and one of the top places in Canada,” Griffiths said, adding she believes the area’s many creative, tech-savvy businesses are significant drivers of these results. “We have a unique asset base that com-municates globally, and it’s this creative class that’s one of our greatest strengths.”
While Griffiths acknowledges Kelowna’s median housing prices may appear high, she stresses there’s a significant difference in the cost of owning a home in the Central Okanagan versus an equivalent dwelling in Vancouver.
“It’s important to recognize that 44 per cent of the people who own a home within the
Kelowna CMA do not have a mortgage.”The recently revealed HST transition rules
have also had an immediate and dramatic impact on the Okanagan’s stalled condo/resort market.
“The new $850,000 HST rebate threshold on recreational properties and second homes locat-ed outside the GVRD and CRD was like draw-ing a bull’s eye around the Okanagan and the area surrounding Victoria on Vancouver Island, then marking them with a “buy here” sign, said a delighted Renee Wasylyk, president of the Kelowna chapter of the Urban Development Institute and CEO of Troika Group. “Since the announcement we’ve seen the activity in sales centres explode. The ripple effect is huge. We’ve written more contracts this March, after the threshold was raised, than in the previous four Marches combined.”
And it’s not only out-of-town buyers who are getting out their chequebooks and getting off the fence.
“I believe now is the perfect time to buy into the Okanagan market,” said Vince Taylor,partner at Pilothouse Real Estate Inc., the company that masterminded the wildly suc-cessful one-day receivership sellout at Tuscany Villas.
“The fabulous lakes, pristine mountains and unparalleled lifestyles that our various com-munities have to offer have not gone away,” he added. “Tuscany Villas was an indication Kelowna buyers are still out there and are anxious to stay in the community they love … if given good options. I think Tuscany repre-sented a turning point in awareness of market conditions and signalled a turn in the Okanagan market in general.”
Taylor adds it’s his view the cause of the past few years’ decline is “glaring and obvious
with hindsight. The collapse of the U.S. mar-ket and U.S. dollar, the collapse of the Alberta tarsands business and corresponding erosionof the Calgary and Edmonton cash pipeline toB.C.’s recreational markets, and over-heated prices.
Now, we’re seeing the U.S. slowly rebound,Alberta again in full swing and prices in Vancouver exceeding the highs of 2007 – thisall bodes well for the Okanagan.”
However, he cautions new developments will need to respond to customer needs andability to pay.
“Grade A waterfront still costs between $7,000 and $10,000 per foot in the CentralOkanagan. A million dollars for 100 feet doesn’t sound like a depressed market to me.”
Randy Shier, principal of the MissionGroup, agrees. “Nothing has changed aboutthis destination. We hit an economic downturnand many Canadians put the decision to pur-chase on hold – especially the Albertans who were put off by the HST. Now we have transi-tion rules in place, they’re coming back. I’d estimate the Alberta market is now 5 to 10 percent of our business.”
Shier also notes there are exceptional values to be found for those who act now. “Unlikeother urban markets that have posted year-over-year pricing gains, Kelowna has held relatively stable. But we’re on the cusp now. More traffic in sales centres translates into more offers. We’re already seeing existing inventory dwindling and predictions suggestsupply from 2007-08 will soon be completelyabsorbed.”
He adds that for the first time in some yearsMission Group is totally sold out of condomin-ium product, although it has two new town-house projects underway: Winsome Hill and Dwell.
Paul Fabris, senior market analyst withCanada Mortgage and Housing Corp. inKelowna, predicts the local housing mar-ket can expect to see modest housing-price
Wineries and Okanagan Lake at Westbank near Kelowna: ranked among top spots for Canadian investors.
Phot
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B8 Interior British Columbia www.westerninvestor.com MAY 2012 WESTERN INVESTOR
from B7gains throughout 2012 and into 2013. “The 2011 resale market picked up, plus we’re see-ing higher levels of migration and personal employment.”
Rising employment is one of the factors Wasylyk says is fuelling the resurgence of con-sumer confidence. “Yes, we were lacking in that area, but no more. There’s a renewed opti-mism. Businesses are firing on all cylinders, especially those tapping into the global markets – businesses like Reidco Metal Industries, who went from eight to 85 employees in less than a year. One of our own companies, Rise and Run, has shown a 25 per cent increase in our gross revenues so far this year. Let’s face it: when you start seeing more people getting jobs and/or people with jobs getting raises, it translates directly into renewed consumer con-fidence.”
Two of the newest employment superstars are Kelowna General Hospital (KGH) and Kelowna International Airport.
Pumping $880 million into the local econo-my is an ambitious P3 addition to KGH. The project includes a new 360,000-square-foot patient-care tower with a new emergency department located on the ground floor that’s four times the size of the existing facility. KGH will also become home to a 34,000-square-foot clinical academic campus of the University of BC Medical School, which it’s hoped will encourage the next generation of doctors to train and, more importantly, stay
Population 106,700Area population 120,000 Average house price $456,000Prime lakefront per foot $7,000-$10,000Web page: www.kelowna.ca
within the Central Okanagan when they take up practice. Interior Health will gain more space and be able to consolidate services.
Arguably even more significant is Phase 2, the International Heart and Surgical Project. This will be the province’s first full cardiac center located outside the Lower Mainland or Victoria. When operational, the centre is anticipated to create a minimum of 80 new jobs, increase the survival rate of heart-attack victims to 98 out of 100 and reduce the wait time for angioplasty surgery from almost four days to 12 hours or less. For people who live in Kelowna and the surrounding area it will also eliminate the expense, stress and poten-tially life-threatening time delay of travelling to Vancouver for surgical procedures.
Ranked the ninth-busiest airport in the country, Kelowna International Airport is in the midst of an ongoing multimillion-dollar makeover succinctly named the “Drive to 1.6 Million Passengers Program.”
“We are currently at 1.39 million passengers, but we expect to reach 1.6 by 2015 or 2016 and this program will ensure our assets are ready to handle that growth,” said Sam Samaddar, airport director, noting that overall traffic for the first two months of 2012 was already up 4 per cent over 2011 levels.
The program will see $50 million invested over five years. Now underway, with a com-pletion estimated for September 2012, Phase 1 will see a new customs hall and increased footprint for the arrivals area of the airport’s international area. Phase 2 will increase the
outbound baggage system, improve the self-service options and incorporate new ways toreduce energy consumption, including a geo-thermal system. The final phase will furtherincrease the domestic arrivals level.
“Is now a good time to buy a home or a sec-ond home in Kelowna? Absolutely,” Wasylyksaid. “This is a pivotal period in a fantastic mar-ket. Purchase prices are great, interest rates arelow and, if you don’t buy now, you’re miss-ing out on an opportunity that’s unlikely to berepeated. It’s just that simple.”◆
5
97
KELOWNA
Okan
agan
Kamloops
Vernon
SummerlandPenticton
Lake
97C
97
97
B.C.OKANAGAN
✪
FOR SALEBY OWNER
RV PARK & CAMPGROUND
Asking $950,000 STEVE
250-499-5439
Subs
cribe
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Reach potential buyers with money to spend. Western Investor readers have higher than average household income and a real interest in real estate.
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Recreational Real Estate LIFESTYLE PROPERTIES www.westerninvestor.com WESTERN INVESTOR
Investment OpportunityAvondale - Crystal Gardens Lake CommunityNewly remodeled home, 1870 square feet, 3 bedrooms plus den, 2 baths, prime location near shopping and freeway access, would make for a great vacation home or could rent for $1000-$1075 as an investment property.For Sale: $112,500
Contact us to start your portfolio today. Here are twelve of the homes we’ve sold over the past few months which are all within a 30 minute drive from downtown Phoenix. We even offer property management for our clients.
Phoenix AreaAverage Sales Price per Square Foot
ARMLS Residential - All Areas and Types
ARIZONA Investment Property For SaleACQUIRE REALTY 623-853-7765Toll
Ste. 305 Avondale, AZ 85323
Sold Price: $51,900Rent: $850City: Tolleson
Square Feet: 1,423
Sold Price: $52,00Rent: $825City: Phoenix
Square Feet: 1,343
Sold Price: $60,300Rent: $895City: Glendale
Square Feet: 1,278
Sold Price: $60,500Rent: $825City: Goodyear
Square Feet: 1,159
Sold Price: $61,500Rent: $925City: Avondale
Square Feet: 1,197
Sold Price: $62,000Rent: $895City: Avondale
Square Feet: 1,255
Sold Price: $64,000Rent: $850City: El Mirage
Square Feet: 1,495
Sold Price: $64,000Rent: $785
Square Feet: 1,574
Sold Price: $64,125Rent: $850City: Phoenix
Square Feet: 1,435
Sold Price: $69,000Rent: $825City: Phoenix
Square Feet: 1,343
Sold Price: $87,000Rent: $995City: Laveen
Square Feet: 1,763
Sold Price: $105,000Rent: $1,150City: Goodyear
Square Feet: 2,277
Acquire Realty is family owned and operated with over 30 years of Real Estate experience. Contact us for Foreclosure or Short Sale Listings in Phoenix, Scottsdale, Fountain Hills, Surprise,
find your vacation home or investment property.
erhaps the strongest evidence of a recovery in the Kootenay recre-ational market is the sale of ranch-
sized acreages at the exclusive Ranches at Elk Park just outside of Radium Hot Springs. Prices range to nearly $3 million – and that is just for the land.
“We have sold two lots and we have holds on two others,” said Rudy Nielsen, founder and president of Niho Land & Cattle Company, which is marketing the ranches through its sub-sidiary LandQuest Realty.
Prices roam from $9,000 per acre for small parcels to around $2,100 per acre for 400-acre and larger ranches.
The 3,500 acres at Elk Park, a gated ranch community and perhaps the only one in B.C., are divided into 16 ranches, from 36 acres to 480 acres.
The two lots that sold – one to a retired Edmonton oil executive – are both in the 100-acre size, as are the two with pending sales.
The Ranches at Elk Park are what Nielsen calls a “rare collection” of recreational private estate properties. The ranches are framed by Kootenay National Park and the Columbia Valley and prices range from $390,000 to $2.95 million for 200 plus acres with a lake.
“This is a very exclusive opportunity,” said Nielsen, 70, B.C.’s most prolific land dealer. In the last 40 years, he’s put together thousands of successful real estate deals, involving tens of thousands of acres, from small plots to ocean islands, to entire town sites and huge farms
and ranches. “There’s nothing else like this in British Columbia. South of the border, in places like Montana, similar ranch-style communities are far less pristine and their prices are much steeper.”
Calgary-based Schickedanz West, the owner of the Ranches project, is adding a com-prehensive amenity centre outside the access point with fitness facilities and a private own-ers’ lounge, Nielsen said. He credited owner Fred Schickedanz for having the vision and patience to create “one of the best recreation-al ranch developments I have seen in a long time.”
Nielsen said buyers are a mix of permanent residents and seasonal owners who plan to
RECREATION FEATURE Wealthy investors corral exclusive acreages at Ranches at Elk Park in Kootenays
WI STAFF
WESTERN INVESTOR
eventually retire to the property. They share an common appreciation of nature, outdoor adventure, horse-back riding, hobby ranching and getting away from it all, “without going too far or spending too much.” Some of the ranches are lakefront, others have valley views and all have the security and privacy only big money can buy: there is only one access road and it is protected by a controlled locked main gate.
The success of Elk Park is likely cheered by other land and recreational vendors in the Kootenays, especially since it heralds the return of Alberta investors.
In 2007, Albertans were big in the Kootenay
area, grabbing more than 2,000 residentialproperties and more than 600 plots of vacantland, with the Columbia Valley figuring large.With the BC/Alberta border so close to Calgary,the Kootenays were a natural lure. Then the oil-fueled global economy stalled and Albertanswent quiet; in 2010 Albertan purchases were off by more than 70 percent or 756 sales of residential properties. However, with the globaleconomy swinging back and oil now north ofUS$100 a barrel Nielsen expects a resurgenceof Alberta buyers into the Kootenays.
“Our sales team says the number and quality of calls coming out of Alberta has increased substantially, compared to anytime from mid-2008 to late 2010, “ Nielsen said.
A recent survey by the Royal Bank fore-casts Alberta will lead the entire country in economic growth this year and next, and like-ly into the next decade. One telling stat: theaverage weekly wage in Alberta is $1,036 a week, almost one-third higher than the rest ofCanada.
And Albertans traditionally look to B.C. forrecreational property.
“You can golf, ski, and catch a large rainbow trout, all in one day in the Kootenays,” Nielsensaid. He notes that the ski hills of Panorama Ridge near Invermere and the amenities ofFairmont Hot Springs are close by Elk Park,with almost two-dozen golf courses within a30-minute drive.
Nielsen said The Ranches will attract a selecttype of buyer.
“The price range is for individuals with a pioneering spirit ready to embrace a rare oppor-tunity to own their own private ranch right atthe foot of the Rocky Mountains.”◆
Ranches at Elk Park: 200 acres with a private lake listed for $2.95 million.
Phot
o: L
andQ
uest
www.westerninvestor.com WESTERN INVESTOR Recreational Real Estate LIFESTYLE PROPERTIES
®
www.bobplowright.com [email protected]
Why Harrison? Nestled against Southwestern British Columbia’s mag-nifi cent mountains and the sandy beaches of Harrison Lake, Harrison Village is your local destination fi lled with a rich history and natural wonders, including our world famous BC Hot Springs. Known for its leisurely days and friendly ways, offering nature, art, entertainment shopping and food.
Overwhelming Views
$1,888,000 Virtual tour at www.6565-rockwell.ca
FOR SALE AUTOMOTIVE PARTS STORE KITIMAT, B.C.
Gerri Saunders (250) 632-2107 (250) 632-6638
Virtual tour at www.annabelyoung.comANNABEL YOUNG Offi ce: 604-888-0786
Cell: 604-961-7541 Email: [email protected]
Far from the Madding Crowd
- Exquisite property features the best of the West Coast
- Water Front -1.84 acres of high water front
- Custom designed house infused with southern light
- Spectacular views of the Gulf Islands- Live year round or have a
weekend retreat and haven- MLS® F1118274 $1,075,000
REALTY (02) LTD.
Approximately 80 minutes northeast of Winnipeg on the Bird River. This classic lodge is world famous for trophy bear and deer hunting. Located 1/4 mile from a Department of Transportation certified airport runway. Suitable for church camp, corporate retreat, training centre or private retreat. Commercial kitchen. Games room, sauna & conference room. Thirteen bedrooms, sleeps 27 plus master bedroom & ensuite. Approx. 6900 sq. ft. on +/-2 acres. Asking $1.85M.
FOR SALE - On Bird River, MB
204-928-5008
Recreational Real Estate ADVERTISING FEATURE:
• Limited spaces • 4-colour ads • Special rates
WESTERN INVESTOR MAY 2012 www.westerninvestor.com Northern British Columbia B9
SOLD
RE/MAX Centre City Realty
Each offi ce is independently owned and operated
GEORGE Weinand 250-960-9556
KEN Goss 250-565-7653
— Your PRINCE GEORGE Commercial Professionals —
2977 Ferry Ave.FOR SALE – 0.8 Acres on corner of Ferry Ave. & Ospika Blvd. C-6 zoning.
www.pgcommercial.ca
THINK REAL ESTATE...The Best Investment on Earth
490 Carson Ave. – Quesnel, B.C. BUSINESS/BLDG/LAND - 3,609 sq ft main fl oor 120 seat restaurant specializing in authentic English fi sh & chips. 1,559 sq ft second fl oor living accommodations, may be converted to a banquet facility plus 2,227 sq ft basement.
‘Wee Chippie Fish & Chips Seafood” BUSINESS FOR SALE – QUESNEL, B.C. Very successful 120 seat main fl oor restaurant, specializing in authentic English fi sh & chips. Inventory to be purchased separately.
5075 Domano Blvd.FOR LEASE – Prime College Heights RETAIL/OFFICE space. Visually desirable location. Net Lease.
2342 Westwood Dr.FOR LEASE – Highly visible 2,371 sq ft prime retail /professional offi ce space. Abundant parking, property has been completely updated.
Lot #1 AtwoodFOR SALE – proposed new subdivision. 17 – 4 Acre+ high quality rural residential lots. 78.8 Acres total. Within 14km of the Westgate Shopping Plaza.
9080 Penn Rd.FOR LEASE – 25,660 sq ft quality warehouse located in the Danson Industrial Park.
9368 Milwaukee WayFOR SALE – 31,640 sq ft major fabricating/manufacturing facility (28’ ceilings). Located on 3.74 Acres, fenced yard, cranes, quality offi ces.
1550 – 1st Ave.ONE OF A KIND OPPORTUNITY. 3 concrete block warehouse on 3 Acres. 44,080 sq ft total space. Well maintained with 11 loading doors, 13 O/H doors, 3 phase power & highway access.
4350 Handlen Rd.COURT ORDERED SALE – 5,525 sq ft concrete block building on.99 Acres. Zoned C-6.
'Sketchley Automotive'Business FOR SALE – Fully equipped automotive repair business. Owner retiring after 34 years of business. Equipment replacement value $150,000.00. Leased premises.
760 Kinsmen Pl.FOR LEASE– New fi rst-class building in prime location. Ready for occupancy September 2012. Main fl oor 4,300 sq ft available and daylight basement 2,000 sq ft. Zoned C-4.
1437 N. Fraser Dr. – Quesnel, B.C.COURT ORDERED SALE – 38.5 Acre property. 604 sq ft stand along offi ce. Main 3,498 sq ft concrete block 4 bay truck shop, with 1,628 sq ft addition attached. A 2,160 sq ft storage building with a 648 sq ft wood frame storage shelter. A sand/gravel business historically operated from this site, however no licensing permits have been confi rmed.
1108 Boundary Rd.FOR LEASE & SALE – 9,000 sq ft cement block building on 2 Acres, fenced compound. 3-Phase Power.
SOLD
B10 Northern British Columbia www.westerninvestor.com MAY 2012 WESTERN INVESTOR
NORTHEAST BC REALTY Ltd. Phone 250 785 4115
“Investing Our Energy In The North”
Located at 10220 101 Avenue Fort St John BC V1J 2B5 www.NEBCRealty.com F: 250 785 4120
RON RODGERS - OWNER / MANAGING BROKER Email: [email protected]
NEBC ©2010—2012
$134,900 City Center Commercial Lot (services at lot line) 73.5’x122’ Ideal multi-use property MLS® N4505054 Fort St John
$482,500 Multi-Residential Lot (up to 25 units) 146.6’x150’ close to major public and commercial amenities MLS® N4505280 Fort St John
$468,000 5.73 acre Industrial Land (great location for office/yard) Close to City amenities LESS CITY TAXES! Modular on site. MLS® N4505213 Fort St John
$468,000 83’x120’ Commercial Lot HIGHLY VISIBLE Along Main Street Dawson Creek. Close to WalMart, Gaming Center, Retail Strip Malls & more. MLS® N4504965 Dawson Creek
$589,000 39,200sf Commercial Lot (just under 1 acre) Excellent corner location along highway entrance to community. Exclusive Chetwynd $1.68 Million 3.01 Acre Commercial Land & Business along Alaska Highway frontage. WITHIN CITY LIMITS! (Rare find) MLS® N4504968 Fort St John
NEW REGIONAL HOSPITAL &
RESIDENTIAL CARE SITE
Opening June 2012
36.36 Acre Land
High Density Residential Development
Opportunity
Asking $1.45 Million
MLS® V4022639 Fort St John
#133128: NEW STRIP MALL has 4 available spaces left for lease, 1,750 sq ft each. Great location on 8th street between Tim Horton’s & The Brick. Lease rates start as low as $16/sq. ft.Start your business here. Strip mall is 10,000 sq. ft.
Also for sale at $1,800,000
FOR SALE OR LEASE 5040 sq ft building on busy
Alaska Ave. Many uses, drive thru availability, lots
of parking, next to government liquor store. Owner
will consider dividing building into two rental units.
Priced at $795,000 or $16.00 per sq ft to lease.
FOR LEASE 3200 SQ FT SHOP with an additional
1680 sq ft of office are on upper floor. 2 doors 12x14
into 40x40 shop. Zoned M2 (light industrial) on .23 of
an acre. Asking $16.00/sq ft.
#131876, 130050, 131875 - HIGHWAY
COMMERCIAL/INDUSTRIAL LAND Situated across
from the EnCana event centre, Chances casino and new
Holiday Inn this is a very desirable location. Total of
three lots each approx 4.5 acres each, excellent visibility
and access. Priced at $450,000 - $500,000 each
#135870: HIGHWAY FRONTAGE - Great visibility on
this. 1.077 acre Industrial lot located on highway #2, all
City services available. New developments in this area
and this is the only lot left for sale along the highway
Asking $159,000
L A N D
#129635: RESIDENTIAL DEVELOPMENT LANDS, one parcel of 25 acres on the north west edge of Dawson Creek for sale, superb location for residential homes, the timing is right as we need more residential lots for our busy market place. Asking $625,000
#129877: ONE ACRE OF MULTIPLE RESIDENTIAL LAND suitable for 37 unit apartment or condo complex. Across from the hospital in a prime residential area of Dawson Creek. $179,000
#127836: SUBDIVISION FOR MOBILE HOMES! Total of 39 mobile lots are possible on this 4.6 acres, zoning in place, some services are already in, 3 lots have been subdivided. Call for more info. Asking $300,000#127441: 80 ACRES OF INDUSTRIAL LAND with highway frontage, railway tracks, water and sewer in the City of Dawson Creek. Asking $31,250 per acre
#135241: COMMERCIAL LAND NEXT TO THE GOLF COURSE. Great location and potential! 10.33 acres that are zoned C-3 (highway commercial) between the driv-ing range and regional district offices, close to a large campground. Lots of options, borders the Alaska High-way. $1,800,000
WILL BUILD TO SUIT - AIRPORT ONE ACRE LOTSDeveloper has 3 one acre lots in a row at the airport with highway frontage...will build a 5000 - 7,000 sq, ft. pre-engineered steel shop, provide a graveled and fenced yard with a 5 year lease starting at $ 14.00 per sq. ft. for the shell. Also willing to build and sell to tenant. One lot now leased and sold. Only 2 left!
#127066: LOCATION, LOCATION, LOCATION 0.74 acres at the intersection of 17 Street and Alaska Highway. Ideal location for strip mall, service station, etc. $295,000
RE/MAX DAWSON CREEK REALTY 1-888-214-5871DAWSON CREEK COMMERCIAL EXPERTS
D A W S O N C R E E Kwww.dawsoncreekrealestate.ca
TOM MORAN [email protected]
LLOYD SMITH [email protected]
#129952 - FOR SALE OR LEASE Multi purpose building with 2 units now leased leaving 11,000 sq ft. available. Upgrades include updated roof and furnacesAsking price is just $397,000
#130029 RETAIL STOREFRONT on 102nd Ave. for sale, 3500 sq. ft on a corner location, paved parking, good visibility can be used for offi ce, retail, or your own small business. Owner will consider leasing as well. Reduced to $119,000 as is
#130010 - WELDING / MACHINE SHOP for sale Includes 12’ door, 13’ ceilings, 3 phase power, 23o Volt/400 amp service. Gravel yard, 100 sq. ft. offi ce with shower & bathroom. Fire hydrant, 2 overhead cranes. $220,000
#129257: THE SOUTH PEACE UNITED CHURCH IS FOR SALE. OVER 11,000 SQ. FT. - Sanctuary, hall, kitchen, offi ces, and support services. Excellent corner location, zoned commercial, very good condition, ready for an offi ce or residential conversion. $495,000
#133401 - BUSINESS OPPORTUNITY located on the east side of Dawson Creek. Belsum Auto Recyclers Ltd has a proven track record and shows a good return. In-cludes 6.5 acres of prime industrial land on Hwy #49, a heated main shop with 3200 sq.ft. and an adjoining 2400 sq. ft. building used for stripping vehicles. Lots of inventory, and equipment includes 3 forklifts and a skid steer. Asking $1,200,000 for the land, buildings, and turnkey business with inventory.
#130083 - Popular new restaurant (Brown’s Social Club) now open and Pizza Hut coming soon, lots of parking.
#129953 - RETAIL BUILDING Great location on
10th St over 3,000 sq ft on main and additional
3,000 sq ft on second floor, located next to Scotia
Bank. Ground floor now leased out to only video rental
company in Dawson Creek. Asking price of $375,000
#132673 - In the centre of the City close to the traffic
circle on Alaska Highway...1.55 acres of flat land with
all new services to the property and bordered by 8th
street and the paved roadway to the new apartment
building. Excellent location, commercially zoned, will
builld to suit. $290,000
SOLD
SOLD
SOLDElaine Kienzle250 563-8769www.elainekienzle.com
For Sale or Lease $575,0009630 sf on 3 levels, separate entrancescompletely refurbished since 2006ideal for retail, design & professional offices
Prince George
Don’t miss this opportunity . . .Invest in a waterfront lifestyle today!Zoned for rec/res development - not in the ALR
26 acres, approx 1450’ of lakefront $295,00055 acres, approx 1650’ of lakefront $495,000
Riverfront Townhome site $500,0001.76 acres - approx 263’ of riverfrontzoned RM1 - multiple residentialpreliminary drawings for 13 townhomes
Prime, high profile location $739,000Hwy access near Costco & Future Shop3664 sq ft building on 1/2 acre lotzoned M3 - Business Industrial
7.32 ac along the Nechako River $545,000zoned res - not in the ALR - subdividableapprox 460’ of riverfront, nicely treedeasy access to downtown & UNBC
For sales or leasing inquiries please contact:
Tel: Fax:
DONNAANDNYLA.CA
D A W S O N C R E E K
Well established Towing and Recovery business in Dawson Creek BC. "Exceptional Towing & Recovery Ltd." 150 X 150 Chainlink fenced, grave/asphalt compound, 1 bay heated garage, dispatch/offi ce unit w/services, storage shed. Zoned M-2 Light Industrial. All Equipment included with list available upon request.
MLS® 134219 Price $895,000 For more info call: Nyla Lepine & Donna Cooper
250-784-4044 [email protected]@remax.net DAWSON CREEK REALTY 250-782-8181 “independently owned and operated”
Mobile Home Park FOR SALE
Fort St John, BC
100% occupied• 90 pads• Gross 359,000• Net 225,000•
$2,890,000
CALL 604-725-4872 or 250-826-2284
EMAIL: [email protected]
20-25%+ ROI/Cash on Cash!
8-Plex for Sale - $549,900
Turn Key, fully managed unbelievableInvestment opportunity in
KITIMAT!THE NEXT FORT MAC!
WESTERN INVESTOR MAY 2012 www.westerninvestor.com Northern British Columbia B11
Remax Action Realty 1991 [email protected]
[email protected] Toll Free : 1-888-785-5520
FORT. ST. JOHN
The Power Of Partnership!
KATHY MILLERCURTIS ROBINSONPERSONAL REAL ESTATE CORPORATION
IDEAL FOR SMALL BUSINESS!
9610 - Sikanni Road2,000 sq. ft. bay w/front reception, offi ce & Mezz.
Shop consists of radiant heat, 14’ overhead doors, main door & fl oor drain. If you need 4000 sq ft the adjoining 9612 - Sikanni Rd. (N4505287) is also available. $14.00/ sq. ft. + NNN - MLS# N4505336
FOR SALE OR LEASE
PROSPECT PARK LOCATION
10711 - 91st Ave Updated offi ce space, new windows, doors and updated forced air furnace. 1100 sq. ft. of offi ce space attached to 3250 sq. ft. of shop. + 6500 sq. ft. of additional shop space available. $15.00/sq ft + NNN - MLS# N4505100
5.238 ACRES IN A GREAT LOCATION!
Lot 11 - 87A AvenueM-2 zoning, easy access to the East bypass road make this a great place to build a shop and set up business.$1,128,750 MLS# N4505220Lot 12 also available $1,128,750 MLS# N4505221
1850 SQ FT LEASE SPACE
8219 – 100 AvenueThis building has great access from 100th Street with easy
access parking. There are well established businesses in the building bringing traffi c to the location. 1850 square feet includes washroom/shower facilities.$15.00/ sq. ft. + NET - MLS# N4505244
INVESTMENT GEM!
4717 - 51 St., Chetwynd
Fully occupied w consisted ROI to the owner. Contains established businesses & a fully furnished 2 bdrm apart. Torch on roof in 1999 & new fi re system in Jan. 2011. $1,200,000 - MLS# N4504915
PROSPECT PARK LEASE SPACE10407 Beaver RoadSteel span bldg features over 11,750 sq ft of combined
shop/offi ce space, & 11,250 sq ft of cold storage. Located in Prospect Park on a paved street with great access to the Alaska Highway.$15.00/sq. ft. + NNN MLS# N4505179
MUFFLER & AUTO REPAIR BUSINESS $145,000
7000 SQ FT SHOP$575,000
27 ACRES RESIDENTIAL $650,000
9.14 PRIVATE AIRSTRIP $400,000
31.34 ACRES HIGHWAY FRONT $1,500,000
HOUSE & SHOPSExtremely revovated house $950,000
Fort St John
RICK “C” WALTERS [email protected]
www.rickcwalters.comRE/MAX ACTION REALTY
Jumbo ski resort wins B.C. approval The proposed and long-debated $1 billion
Jumbo Alpine Ski Resort development 57 kilometres west of Invermere in the West Kootenays has won approval from the prov-ince, confirms Steve Thompson, minister of forests, lands and natural resource opera-tions .
“After more than 20 years of comprehensive and exhaustive reviews, it was time to make a decision. I approved Jumbo Glacier Resort’s master development agreement after review-ing all of the relevant documentation and meeting with both First Nations and the pro-ponent,” said Thomson in a statement.
The province says the project will attract $900 million in investment and create 750 permanent jobs.
Once complete, Jumbo will feature up to 23 lifts, a 3,000-metre-high gondola and a ski village with more than 6,000 units. The resort will be comparable in size to Silver Star in Vernon or about one-tenth the size of Whistler Blackcomb.
Oberto Oberti, the architect behind the proposal, hopes to have the first phase up and running within two years.
Victoria landlords reluctant to sell Interest rates may be low, cash readily
available and buyers lined up, but owners of Victoria rental apartment buildings are not eager to sell in a city with a tight 2 per cent vacancy rate.
That’s a synopsis of the Victoria multi-residential market, according to Colliers International’s recent apartment investor overview.
“And it pretty much applies to all com-mercial real estate product segments – office,
retail, industrial and multi-residential apart-ment – there’s just not enough product to satisfy demand,” said Ken Cloak, Colliers Victoria associate vice-president and multi-family specialist.
The Colliers report noted that last year there were 12 apartment-building sales for total sales of $46 million, down from 2010’s 22 sales totalling $98.5 million. The 10-year average is around $56 million.
“The only meaningful thing about that is we didn’t see any portfolio trades in 2011,” said Cloak.
Of the 12 large sales last year, the biggest was the 72-unit Westside Apartments (now Olympic View Terrace) at 885 Craigflower Road, which sold for $7.9 million in October. Other big sales included the 64-unit Quadra Villa at 2835 Quadra Street, sold for $6.7 mil-lion in June, and the 43-unit Don Quadra at 3244 Quadra Street, sold for $5.3 million.
Cloak said the only thing helping the vacan-cy issue is investment in condominium proj-ects. He said investors are buying now while interest rates are low and renting the suites.
Metro consumers split on housing Forty-six per cent of consumers in the
Lower Mainland think this spring is a good time to buy a home, according to a recent REW.ca consumer confidence survey done by Mustel Research Group. However, 42 per cent of consumers disagree, the sur-vey discovered.
A combination of record-low mortgage rates and record-high home prices has skewed the traditional active spring market, leaving local consumers split on where the market is head-ing.
Of those who don’t think it is a good time to buy, nearly half cite high home prices and 17 per cent expect prices to correct downward in the months ahead.
Meanwhile, a 56 per cent majority of respondents believe now is a good time to sell a house or condo in the Metro market. Of this group, 18 per cent point to high prices as the reason to sell this spring, and 17 per cent believe there will be a market correction that
Powell River residents and current and pensioned mill employees are
waiting to hear the fate of the town’s largest employer as Catalyst Paper Corp. seeks a $395 million restruc-turing plan. Catalyst has been under Companies’ Creditors Arrangement Act (CCAA) creditor protection since late January.
Catalyst, whose restructuring plan faced a creditor vote in late April, has already shut down its pulp mill in Campbell River and is seeking court approval to sell its remaining B.C. mills in Powell River and Crofton to the highest bidder, if the restructuring plan fails.
Retired salaried employees of Catalyst stand to lose a substantial portion of their pensions if the company’s plan fails.
The company and its noteholders have put forward a sales and investor solicitation process, which includes a “stalking horse bid,” rumoured to be from a bond holder. This means some noteholders are prepared to become the new owners – and sellers – of the company.
“All of us hope very strongly that Catalyst management is able to sail through this credi-tor protection and continue their operations,” said Jim Donnelly, who was the investment recovery manager at the Powell River division before he retired in 2007. “If they do, then this is not a problem to any of us.”
But if the company doesn’t sail through, Donnelly added, “Our pensions are at risk.”There are between 1,000 and 1,100 salaried Catalyst pensioners affected by this, including
about 200 living in Powell River.“We’re all hoping that [the] company can make it through this,” he said. “But, if it doesn’t,
the fact remains there are about 1,000 people who stand to lose 40 to 50 per cent of their pension income.”
The Superintendent of Pensions has allowed Catalyst relief from making regular contribu-tions to the salaried pension plan for several years, Donnelly explained, because the company has pleaded it was in a difficult financial position. “What that’s done is run down the value of the pension plan, to the point where it’s $73.5 million underfunded,” he said.
Donnelly pointed out that the City of Powell River’s mayor and council and the previous mayor and council should be recognized for tax relief to Catalyst and trying to make the business climate better. Catalyst now has about 300 employees, down about 50 per cent from a decade ago.
Concerns about Catalyst’s future have affected the housing market, confirmed Warren Behan, a veteran Powell River realtor. “Prices have been falling now for four years,” he said. As an example, he pointed to a current Coast Realty listing of an oceanview home in the Westview area priced at $225,000. “You can buy waterfront homes here for less than $500,000,” he said. “There are terrific bargains.”
Powell River’s troubled Catalyst pulp mill.
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owel
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will result in dropping prices.Consumer uncertainty is reflected in this
year’s sales figures: housing sales are below
the 10-year average for the first quarter in both Greater Vancouver and the Fraser Valley.◆
B12 Alberta www.westerninvestor.com MAY 2012 WESTERN INVESTOR
Price per unit $27,217 Total List price $6,750,000
www.colliershskmultifamily.com
PHOENIX, ARIZONABELLA SOL - APARTMENT COMPLEX* Two story apartment community built in 1985* 248 rental units - unit mix 50% one bedrm, 50% two bedrm* Construction - wood & painted stucco* $1,000,000+ in capital improvements* Buildings are individually metered for electricity* Financing Available* Convenient to transporation, shopping & schools
Colliers HSK Multifamily SpecialistsDir +1 602 222 [email protected]
Trevor KoskovichAssociate Vice President
Price per foot $37.00
Edmonton area SALE/LEASEBACK - $9,300,000
20 YEAR LEASE with family run business for 66 YEARS with a CAP RATE of 8.7%
Investment package together with summarized STRONG financial statements available to qualified buyers providing confidentiality agreements- Principals ONLY
Contact Jim Barkwell or Chad Snow at NAI Commercial Real Estate (780) 436-7410
NAI Commercial Real Estate Inc.
4601 - 99 Street, Edmonton AB T6E 4Y1
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FRANCIS LEE, Associate Broker
For More DetailsTel: 403-680-6130Email: [email protected]#20, 8180 Macleod Tr. South, Calgary
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Why Harrison? Nestled against Southwestern British Columbia’s mag-nifi cent mountains and the sandy beaches of Harrison Lake, Harrison Village is your local destination fi lled with a rich history and natural wonders, including our world famous BC Hot Springs. Known for its leisurely days and friendly ways, offering nature, art, entertainment shopping and food.
Overwhelming Views
$1,888,000 Virtual tour at www.6565-rockwell.ca
FOR SALE AUTOMOTIVE PARTS STORE KITIMAT, B.C.
Gerri Saunders (250) 632-2107 (250) 632-6638
Virtual tour at www.annabelyoung.comANNABEL YOUNG Offi ce: 604-888-0786
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Far from the Madding Crowd
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weekend retreat and haven- MLS® F1118274 $1,075,000
REALTY (02) LTD.
Approximately 80 minutes northeast of Winnipeg on the Bird River. This classic lodge is world famous for trophy bear and deer hunting. Located 1/4 mile from a Department of Transportation certified airport runway. Suitable for church camp, corporate retreat, training centre or private retreat. Commercial kitchen. Games room, sauna & conference room. Thirteen bedrooms, sleeps 27 plus master bedroom & ensuite. Approx. 6900 sq. ft. on +/-2 acres. Asking $1.85M.
FOR SALE - On Bird River, MB
204-928-5008
Recreational Real Estate LIFESTYLE PROPERTIES www.westerninvestor.com WESTERN INVESTOR
Investment OpportunityAvondale - Crystal Gardens Lake CommunityNewly remodeled home, 1870 square feet, 3 bedrooms plus den, 2 baths, prime location near shopping and freeway access, would make for a great vacation home or could rent for $1000-$1075 as an investment property.For Sale: $112,500
Contact us to start your portfolio today. Here are twelve of the homes we’ve sold over the past few months which are all within a 30 minute drive from downtown Phoenix. We even offer property management for our clients.
Phoenix AreaAverage Sales Price per Square Foot
ARMLS Residential - All Areas and Types
ARIZONA Investment Property For SaleACQUIRE REALTY 623-853-7765Toll
Ste. 305 Avondale, AZ 85323
Sold Price: $51,900Rent: $850City: Tolleson
Square Feet: 1,423
Sold Price: $52,00Rent: $825City: Phoenix
Square Feet: 1,343
Sold Price: $60,300Rent: $895City: Glendale
Square Feet: 1,278
Sold Price: $60,500Rent: $825City: Goodyear
Square Feet: 1,159
Sold Price: $61,500Rent: $925City: Avondale
Square Feet: 1,197
Sold Price: $62,000Rent: $895City: Avondale
Square Feet: 1,255
Sold Price: $64,000Rent: $850City: El Mirage
Square Feet: 1,495
Sold Price: $64,000Rent: $785
Square Feet: 1,574
Sold Price: $64,125Rent: $850City: Phoenix
Square Feet: 1,435
Sold Price: $69,000Rent: $825City: Phoenix
Square Feet: 1,343
Sold Price: $87,000Rent: $995City: Laveen
Square Feet: 1,763
Sold Price: $105,000Rent: $1,150City: Goodyear
Square Feet: 2,277
Acquire Realty is family owned and operated with over 30 years of Real Estate experience. Contact us for Foreclosure or Short Sale Listings in Phoenix, Scottsdale, Fountain Hills, Surprise,
find your vacation home or investment property.
erhaps the strongest evidence of a recovery in the Kootenay recre-ational market is the sale of ranch-
sized acreages at the exclusive Ranches at Elk Park just outside of Radium Hot Springs. Prices range to nearly $3 million – and that is just for the land.
“We have sold two lots and we have holds on two others,” said Rudy Nielsen, founder and president of Niho Land & Cattle Company,which is marketing the ranches through its sub-sidiary LandQuest Realty.
Prices roam from $9,000 per acre for small parcels to around $2,100 per acre for 400-acre and larger ranches.
The 3,500 acres at Elk Park, a gated ranch community and perhaps the only one in B.C., are divided into 16 ranches, from 36 acres to 480 acres.
The two lots that sold – one to a retired Edmonton oil executive – are both in the 100-acre size, as are the two with pending sales.
The Ranches at Elk Park are what Nielsen calls a “rare collection” of recreational private estate properties. The ranches are framed by Kootenay National Park and the Columbia Valley and prices range from $390,000 to $2.95 million for 200 plus acres with a lake.
“This is a very exclusive opportunity,” said Nielsen, 70, B.C.’s most prolific land dealer. In the last 40 years, he’s put together thousands of successful real estate deals, involving tens of thousands of acres, from small plots to ocean islands, to entire town sites and huge farms
and ranches. “There’s nothing else like this in British Columbia. South of the border, in places like Montana, similar ranch-style communities are far less pristine and their prices are much steeper.”
Calgary-based Schickedanz West, the owner of the Ranches project, is adding a com-prehensive amenity centre outside the access point with fitness facilities and a private own-ers’ lounge, Nielsen said. He credited owner Fred Schickedanz for having the vision and patience to create “one of the best recreation-al ranch developments I have seen in a long time.”
Nielsen said buyers are a mix of permanent residents and seasonal owners who plan to
RECREATION FEATURE Wealthy investors corral exclusive acreages at Ranches at Elk Park in Kootenays
WI STAFF
WESTERN INVESTOR
eventually retire to the property. They share an common appreciation of nature, outdoor adventure, horse-back riding, hobby ranching and getting away from it all, “without going too far or spending too much.” Some of the ranches are lakefront, others have valley views and all have the security and privacy only big money can buy: there is only one access road and it is protected by a controlled locked main gate.
The success of Elk Park is likely cheered by other land and recreational vendors in the Kootenays, especially since it heralds the return of Alberta investors.
In 2007, Albertans were big in the Kootenay
area, grabbing more than 2,000 residentialproperties and more than 600 plots of vacantland, with the Columbia Valley figuring large.With the BC/Alberta border so close to Calgary,the Kootenays were a natural lure. Then the oil-fueled global economy stalled and Albertanswent quiet; in 2010 Albertan purchases were off by more than 70 percent or 756 sales o fresidential properties. However, with the globaleconomy swinging back and oil now north ofUS$100 a barrel Nielsen expects a resurgenceof Alberta buyers into the Kootenays.
“Our sales team says the number and quality of calls coming out of Alberta has increased substantially, compared to anytime from mid-2008 to late 2010, “ Nielsen said.
A recent survey by the Royal Bank fore-casts Alberta will lead the entire country in economic growth this year and next, and like-ly into the next decade. One telling stat: theaverage weekly wage in Alberta is $1,036 a week, almost one-third higher than the rest ofCanada.
And Albertans traditionally look to B.C. forrecreational property.
“You can golf, ski, and catch a large rainbow trout, all in one day in the Kootenays,” Nielsensaid. He notes that the ski hills of Panorama Ridge near Invermere and the amenities o fFairmont Hot Springs are close by Elk Park,with almost two-dozen golf courses within a30-minute drive.
Nielsen said The Ranches will attract a selecttype of buyer.
“The price range is for individuals with a pioneering spirit ready to embrace a rare oppor-tunity to own their own private ranch right atthe foot of the Rocky Mountains.”◆
Ranches at Elk Park: 200 acres with a private lake listed for $2.95 million.
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uest
WESTERN INVESTOR MAY 2012 www.westerninvestor.com B13
We are looking for 1st or 2nd mortgage lending opportunities for:
Single and multi-family residential developments
Commercial, industrial and retail developments
Refinancing / acquisitions
Construction / land servicing
Bridge loans
Income producing properties
CareVest has been providing its industry leading lending services since 1994. Our integrated real estate services specialize in the investment, financing and syndication of real estate mortgages throughout Western Canada and Ontario.
ROCKY PARKCIR REALTY
403-681-7512www.rockypark.ca
BUSINESS & INVESTMENTS
MOTEL IN SUNDRE * Asking: $2.49M * SALES: $752,047 * NOI $366,681 * 25 UNITS * 17 VLT’S
MOTEL IN ST. PAUL * Asking: $1.08M * Sales: 358,231 * NOI: 236,484 * 53 Units
MOTEL IN MOSSLEIGH * Asking: $599,500 * Sales: $160,000 * 17 Units + 14 RV parking stalls
GROCERY STORE IN OYEN * Asking: $1.29M * Sales: $2.6M * Living quaters included
GROCERY STORE IN BIG VALLEY * Asking $325,000 * Sales $700,082 * NOI: $103,583 * Only one in the village
STRIP MALL IN CARSELAND * Asking: $2.2M * NOI: $140,400 * Building size: 12,600 sqft
RETAIL BUILDING IN CALGARY * Asking: $669,500 * NOI: 35,800
LAUNDROMAT + DRY CLEANING IN ROCKY MOUNTAIN HOUSE * Asking: $324,900 * Sales: $293,501 * NOI: $144,480 * 12 Washers, 13 Dryers * Size: 3,164 sqft * Rent: $4,176
CALGARY & AREAProperty & Business
OpportunitiesLiquor Store (Business)
Gross sales: $2.3M (2011)Gross margin: 23%Location: High traffic strip mall in Calgary Asking: $790,000
Liquor Store (Property & Business)Gross sales: $3M (2011)Gross margin: 17% Location: 2hrs from CalgaryAsking: $1.55M
Liquor Store (Business)Gross sales: $1.5MGross margin: 20%Location: 30 min from CalgaryAsking: $499,000
Grocery Store (Property & Business)
Gross sales: $1.4M Gross margin: 30%45min from CalgaryB/D size: 8,000 sq.ft.Asking: 1.5M
Mi Jin Graham CCS [email protected]
f you have invested in real estate in Canada over the past decade, whether purchasing 20 units or just your own res-
idence, it would have been hard to go wrong. Home prices doubling in most major mar-kets since 2000 have helped mask what could have been glaring investing errors. But most economists now predict flat or even declin-ing markets in the short term.
Adding to this is the fact that mortgage financing has become increasingly difficult. The reality is that, while less than 5 per cent of residential real estate is purchased as an income property, about two-thirds of all defaults and mortgage fraud come from this segment. As CMHC gets closer to its $600 billion insurance cap and volatility increases globally, financ-ing for investors will continue to decrease. And thanks to BMO and its 2.99 per cent pro-motional rate earlier this year, profitability on mortgages has decreased as mortgages have started to become banks’ loss leader. Placing a mortgage on your rental property has a much lower chance of bringing lenders new oppor-tunities to cross-sell on higher-margin prod-ucts like bank accounts and credit cards. It is likely that you are either already their client or you have relationships with multiple lenders already (as most investors will find becomes a necessity). In short: time to pucker up if you want $300,000 for that next investment.
If you are interested in investing in real estate it is imperative that you understand how banks finance investment properties, and how to get yourself prepared.
First, it is important to understand how banks qualify your first rental purchase and how it differs from financing your residence.
Most Canadians are qualified for their own mortgage based on their credit, down payment and most importantly their income. To deter-mine how much you qualify for on a personal mortgage, take 40 per cent of your gross annual income and divide that number by 12 to get a monthly figure. Subtract any current loans and liabilities to get the total amount you can qualify for on a monthly basis for the property taxes, strata fees, heating and mortgage pay-ment.
Example: A salaried employee earning $60,000 in income with a monthly car loan of $350/month. $60,000 x 0.4 = $24,000. $24,000/12 = $2,000. $2,000 - $350 = $1,650 in combined mortgage, tax, strata fees and heating expenses per month.
Qualifying for a rental property isn’t as simple. It surprises many to learn that most banks will only use a small portion of the rental income to help qualify your acquisitions. Most banks use what is called a “50 per cent add-to-income” method of calculating rental income.
Here’s the math on $1,000 in monthly rent: $1,000 x 50% = $500. $500 is added to your income, and 40% of your income is used to carry debts. So $500 x 40% = $200 of borrow-ing power. Based on today’s rates, $1,000 in rental income qualifies a borrower for about $40,000 on a mortgage.
The problem with the “add-to-income” method is this: not just the first rental pur-chase is tough, but each subsequent purchase gets tougher. As it is almost impossible for the rent to cover the expenses, each rental prop-erty becomes a loss on paper that your income needs to carry.
On top of this, instead of the minimum 5 per cent down available for personal residence purchases, the down payment was increased to
20 per cent for investment purchases in March 2010.
Lenders have varying programs available for investors so it is advised to speak to a mortgage broker who can access the multiple lenders.
Because of the roadblocks placed in front of investors, the initial setup is vital to purchasing multiple investments.
Make sure you arrange your personal resi-dence mortgage properly and, if you don’t own a residence already, buy one. Your own home is usually the best and most expensive invest-ment in your portfolio and will usually see the largest appreciation. This is important because your residence is not subject to taxes (capital gains) upon sale and is usually the hub for your investing career.
To set up your financing properly, you should make sure that you have extended your amortization as long as possible for the lowest minimum payment (but make sure to negotiate good pre-payment privileges). The low minimum payments will help qualify you for future purchases, but make sure you still utilize the lump-sum option to get off the nev-er-never plan. Your mortgage should also be a re-advanceable mortgage, which allows you to
borrow back the principal you have paid downon your mortgage via a secured line of credit(LOC) or other mortgage portions.
Remember that you can use your line ofcredit against your residence to use for down payment on a rental property. This is a greatway to borrow 100 per cent of the investment (20 per cent from the LOC and 80 per cent on the property). The interest portion of the pay-ments is a tax deduction on both the borroweddown payment and the mortgage you place on the rental.
Once your residence is set up, it’s time to start analysing real estate and making acquisi-tions.
The biggest mistake you can make is assuming that property values will go up. If you buy cash-flow-negative property based on it appreciating you may be stuck selling the property at a lossor worse. If you invest in cash flow the onlyway to lose in real estate is if you are forcedto sell the property. If it is putting money in your pocket each month, you can wait until themarket recovers to sell and ensure you make a profit on your investment.
Most investors are advised to do a lot of net-working, connecting with professionals who specialize in working with investors and per-haps joining large investment networks like the Real Estate Action Group in Vancouver. It’s always cheaper to learn from other people’s mistakes than your own.
When analyzing potential property, a free cash-flow analysis spreadsheet is available fordownload at www.mortgagesforinvestors.ca. Don’t be afraid to put an offer in on a goodproperty if your preliminary research looks good. You will always learn more from theexperience than by reading books.
In summary, the only way to make money in real estate is to take action.◆
Kyle Green works with Vancouver-based Mortgage Alliance Meridian Mortgage Services, specializing in investment real estate.Contact him at 778-373-5441 or [email protected].
INVESTING101 Finding money and making more in today’s tough lending market for rental investors
Audience First-time investors Lesson Arranging financingInvestment Rental propertiesStrategy Buy for cash flow, sell for profitBest advice Take action
INVESTING101
Kyle Green, Vancouver-based mortgage broker and investor
B14 Alberta www.westerninvestor.com MAY 2012 WESTERN INVESTOR
Commercial,Industrial & ResidentialFinancing
P (403) 290-1990F (403) [email protected]
Obtaining Mortgages and Loans can be made Easy &
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Contact:Frank Hickey
CURRENT OFFERINGSconsisting a variety of suites, well located with highway exposure and surrounded by a substantial number of conveniences, continued superb revenue performances that yield substantial N.O.I. that ultimately result in excellent return on equity and investment.
in superb condition, continuously operates at a very high occupancy level that yields excellent revenues, immediate possession, an excellent buy at
, strategically well placed in a Premier location, completely up-graded, significant mortgage financing, very strong revenue performances; a good investment with a big up-side potential going forward.
well located in a prime commercial area a dynamic city, the stellar performance of its operation is attested to by its continuous outstanding growth in revenues, plus substantial up-side potential.
, featuring indoor Swimming pool among its other amenities, very well located on a service road that gives it highway exposure, outstanding Revenue/occupancy performances.
with potential uses for highway commercial and residential in a town with tremendous growth potential going forward, very reasonably priced at
A New Deluxe 2-Bedroom Condo Consisting of 2-bath rooms, fireplace, cable among many other superb Features, plus the many amenities such as swimming pool, sauna, fitness Center, indoor parking to name a few within the Building Complex’ Immediate possession available, a great buy with cash to an existing mortgage of $330,900 more or less, at the
MOTELS & HOTELS≥ HARDISTY New 44 unit Motel.≥ NAMPA, ALBERTA in busy boom town, 16 unit motel,
100 seat lounge, VLTs, liquor store and restaurant. PRICE REDUCED TO $990,000!
≥ CAMROSE ALBERTA 68 room, full services Hotel. REDUCED - NOW $4.0M.
≥ CAMROSE 4-Plex – Reduced! Located in a quiet residential south west area. Individually titled. Fully leased. ASKING $429,000.
≥ DAYSLAND Bottle Depot – Building, all equipment, and shelving with additional 2 lots. Do a drive by. Phone for details.
email:[email protected]
FOR MORE INFORMATION CALLOREST: 780-679-8353 FAX: 780-672-1897
CAMROSE, ALBERTA
ALBERTA IS AGAIN MOVING!≥ FORESTBURG Pizza & Steak house. Restaurant seats
60, Lounge 30, with 3 VLTs & 2 cash machines. A very profitable operation. Full line of stainless steel equipment & recently upgraded fixtures. Living quarters as part of premises. ASK $565,000.
≥ VIKING Viking Hotel, a renovated and up graded operation. 12 guest rooms, a managers suite, tavern, & restaurant. Owner retiring. ASK $159,000.
≥ ANDREW, AB Liquor store. 2064 sqft. Brick finished bldg. on main street. (Former ALCB) Financials available to qualified buyers. ASKING $285,000.
CALGARY, ABSpringbank 160 Acres
Dan Silvester 403-705-8039
• 3000 sq ft character office space - Victoria Park• 4000 sq ft Penthouse office space - 17th Ave S.W. Calgary• 2175 sq ft West Downtown Office Condo For Sale $761,250• 6000 sq ft Industrial Building N.E. Calgary $1.3M• Floral Shop Downtown For Sale $79,900• Buyer Representation for Alberta Multi-Family Properties• Buyer Representation for Golf Course & Resort Development
Email: [email protected] to Receive Our Current Alberta Apartment Report!
Bus: (403) 240-4000www.toolepeet.com
Infinity Mortgages and Loans Inc. specializes inMulti residential, commercial, industrial, retail, hospitality and development. We provide financing ranging from bridge loans to long term take out. Whether acquiring, refinancing or constructing, our experts have the experience to finance your project. Canada wide and international service available.
Commercial Mortgage Funds Available
403-770-0224
RESORT: Asking $4.0mil60 Acres in Rocky Mountain, 6 months open
MOTEL: Asking $1.49mil51 Rooms, Sale $500,000 in Vegreville, AB
MOTEL: Asking $3.79mil 38 rooms in Edmonton
MOTEL: Asking $1.79mil45 rooms in Pincher Creek
CAR WASH: Asking $2.95milSale $600,000 I hour from Edmonton
Thomas Koh (CIR) 403-680-9827
For further information, please call:Duncan MacLean Richie Bhamra [email protected] [email protected]
403 750 0800 403 303 4569
CBRE Limited, Real Estate Brokerage
FOR SALE: Retail Investment PropertyMain Street Centre, Airdrie, AB
Isaac Shaikh Urban Property Inc
Calgary, Alberta
403-918-8932
Bottle Depot For Sale
Southern Alberta town Trading population 13,000 people
Price, Financials available
To Serious Buyer Call 403-918-8932
For SaleAdjacent to Highway #1 in Medicine Hat, Alberta
PARCEL ONE:4.74 Acres – Fenced – Gravel compacted 6000 square ft. sprung tent with two roll away doors. GOOD LOCATIONAsking: $780,000
PARCEL TWO:6.55 Acres – Bare land - Services to property lineGREAT LOCATIONAsking: $849,000
Rod WilsonROYAL LEPAGE Community Realty
BUS: (403) 528-4222CELL: (403) 548-0156TOLL: 1-888-526-0911OFFICE: (403) [email protected]
www.medicinehatrealesate.net
WESTERN INVESTOR MAY 2012 www.westerninvestor.com Alberta B15
INVESTMENT OPPORTUNITIES FROM BARCLAY STREET REAL ESTATE
EDMONTON OFFICE 202, 2520 Ellwood DriveEdmonton, AB T6X 0A9 p: 780 463 3332
CALGARY OFFICE Suite 200, 407 – 8th Avenue SWCalgary, AB T2P 1E5 p: 403 290 0178 f: 403 262 1314
SOLUTIONSCOMMERCIAL REAL ESTATE Property
Management Office, Retail, Industrial
SALES AND LEASINGLand, Investment
SALES
FOR SALE
For more information or to view, please contact:
RYAN [email protected]
p: 403-290-0178 f: 403-262-1314
opportunity.
on the second floor.
in Kensington area.
OWNER USER OFFICE BUILDING
429 11TH STREET NW
FOR SALE
224 15TH AVENUE SW
For more information or to view, please contact:
RYAN [email protected]
RICHARD [email protected]
p: 403-290-0178 f: 403-262-1314
Proximity to 17th Avenue SW, one
shopping and commercial districts, provides convenient access to various amenities.
OWNER USER OFFICE BUILDING
For more information or to view, please contact:
RYAN [email protected]
p: 403-290-0178 f: 403-262-1314
premises located on a prominent
vibrant 4th Street SW Residential/
FOR SALE
505 21ST AVENUE SW
OWNER USER OFFICE BUILDING
LOCAL EXPERTISEMATTERS
For more information or to view, please contact:
DOUG [email protected]
FOR SALE
(REAL ESTATE ONLY)
RESTAURANT PROPERTY
estate offering, not an offering for the business within.
place.
WWW.BARCLAYSTREET.COM
FOR SALE
For more information or to view, please contact:
GEORGE [email protected]
p: 403-290-0178 f: 403-262-1314
restaurants, Saddledome, Stampede
developments (Sasso, Vetro, Nuera and Stampede Station).
appeal.
MIXED-USE COMMERCIAL BUILDING
BERNARD CALLEBAUT BUILDING
NEWLISTING
FOR SALE
For more information or to view, please contact:
GEORGE [email protected]
p: 403-290-0178 f: 403-262-1314
Serves the sporting population and benefits from its close proximity to Genesis Place Sporting Facility.
MULTI-TENANT RETAIL PLAZA
BIG SPRINGS PLAZA
NEWLISTING
B16 Alberta www.westerninvestor.com MAY 2012 WESTERN INVESTOR
PEACE RIVER, ALBERTA FOR SALE: COMMERCIAL BUILDING
Presently leased - some Vacancies available.37,000 sq. ft. on 2.99 acres. Includes commercial Kitchen, banquet roomplus smaller offices.Many upgrades and renovations. Downtown location - plenty of parking. Offered for $2,500,000
Thiry Kelemen 780-831-8804 [email protected]
For Further Information and Details, Call
RE/MAX GRANDE PRAIRIE
NORTHERN ALBERTA FULL SERVICE HOTEL FOR SALE
81 rooms and suites - on 12.5 acres.Highway frontage - lots of parking.76 seat coffee shop, 135 seat dining room, 80 seat pub, 160 seat Sports Bar with VLT’s.2 homes for staff housing. Offered for $16,000,000
4110 - 79 Street NWCalgary, Alberta
10,250 Sq. Ft. Office Building
Calgary OfficePhone: (403) 214-2344 FAX: (403) 214-0244
BUILT ON THE POWER OF OUR NETWORK. OVER 375 OFFICES WORDLWIDE.
Shane OlinTel: (403) 708-9086
FOR SALE
602 - 12 Avenue SECalgary, Alberta
7,000 Sq. Ft. Downtown Site
97 Prairie Place SECalgary, Alberta
4.7 Acres Industrial Development Site
Jim CourtneyTel: (403) 291-8873
Shane OlinTel: (403) 708-9086
Jim BalfourTel: (403) 291-8860
Tim AndersonTel: (403) 291-8866
[email protected][email protected]
Jim BalfourTel: (403) 291-8860
Tim AndersonTel: (403) 291-8866
[email protected][email protected]
HOTEL - FULL SERVICE
Southeastern Alberta
facilities
5 MOTELS PRICED UNDER $700,000
the cost of an average home in Calgary
BUILDING FOR SALE
FOR SALE
Westmount Village Phase 1Okotoks, Alberta
24,175 Sq. Ft. Shopping Centre
SHOWROOM/WAREHOUSE BAY FOR LEASE
Bay D, 4301 - 9 Street SE, Calgary
FULL SERVICE MOTEL
In Dynamic Good Sized Western City
Saskatchewan
$195,000
$350,000 $285,000
$495,000
Ray @ 403-627-8084
FOR SALE BY OWNER Southwest Alberta
DUSTY SMITH TEAMSUTTON LANDMARK REALTY / RED DEER, AB
CENTRAL ALBERTA CAMPGROUND OPPORTUNITIES
LAKEFRONT! 403-347-0744
KACIKEWIN CAMPGROUND & CABINSOnly 40 min. west of Edm. 10.00 +/- Fully treed acres. 89 beautiful lakefront sites. Fully rented last 9 yrs. Store/Manager's residence. Room for expansion! Large sandy beach area. Located west of Alberta Beach on Lac Ste. Anne.
$3,250,000
RED DEER IS BOOMING AGAIN
-Walk To Red Deer College-Five 3 Bedrooms & 0ne 2
-Newer Windows & Exterior -Excellent Cash Flow
DEVELOPMENTOPPORTUNITY
PAINTBRUSH RIDGE, CANMORE ALBERTASITE FEATURES
*
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WESTERN INVESTOR MAY 2012 www.westerninvestor.com B17
REGIONAL ROUNDUP Medicine Hat looking to the future as natural gas price plunges to a decade low
Please see Wind power page B19
DAVE HUSDAL
WESTERN INVESTOR
lberta’s oil-centric recovery hasn’t sparked the economies of the prov-ince’s traditional natural gas hubs,
but the “Gas City” of Medicine Hat is boldly planning for a bright tomorrow, despite gas prices plunging to decade lows.
As of press time, natural gas was trading at US$2 for 1,000 cubic feet, the lowest level since January of 2002 and far below the 2011 peak of $4.85.
But this southeast Alberta service centre is looking past the current gas cycle – it has seen them before – to 50 years down the road. The city, after all, has a 4.6 per cent unemployment rate (the Canadian average is 7.2 per cent) and remains a muscular trading and transport hub with two military training bases.
Rudyard Kipling once quipped Medicine Hat had “all hell for a basement,” but it may also have a helluva future.
And it’s a future based primarily on help-ing real estate investors by cutting red tape and delays on projects, especially industrial and high-density residential developments.
“We’re hoping to produce a much more sim-plified land-use bylaw with a much simpler and hopefully less expensive manner of … getting through the system,” explained Chris Reddy,the city’s new general manager of planning, building and development.
Reddy, who moved to the ’Hat from Fort McMurray, understands a little about moving building activity along.
His department is currently working through the introduction of a new municipal develop-ment blueprint for the city, as well as the new land-use bylaw. The overarching MDP, known as the Medicine Hat Plan, has already been to the city’s planning commission and will now undergo scrutiny from the public and city coun-
cil. It may well pass from talk to action this year.
The document focuses on expanding indus-trial development in the city, as well as adding residential density.
“We’re going to put a lot more emphasis on the industrial sector, the area around the Canadian Fertilizer site, as our future employment growth area,” Reddy explained.
The area immediately around the fertilizer plant site in the city’s north end is not likely to attract housing or retail but is seen as vital for industrial businesses, everything from manu-facturing to staging yards for the energy and transportation sectors.
Industry-wise, there’s been a silver lining for Medicine Hat in the cloud of lagging gas prices. Multinational giant Enerflex re-opened
its mothballed Medicine Hat methanol plant last year because lower gas prices improved the plant’s competitiveness.
The Medicine Hat Plan envisions a greener city with more than 100,000 residents in 2060 – up from 60,000 today. The plan also calls for more compact neighbourhoods, “sensitive infill,” greater reliance on “alternative energy, from solar and wind” and the usual utopian-style boilerplate. But it backs up the platitudes with some hard numbers and a respect to mar-ket realities.
The housing-density scheme envisions up to 17 homes packed into each hectare – twice the current average in Alberta cities – but Reddy admits this could be a hard sell in a car-loving Prairie city that covers more than 11,200 hect-ares.
“Market demand will have a say in how neighbourhoods are built or redeveloped,”Reddy said.
Still, he notes, some of the city’s existing subdivisions already sport housing densities higher than that benchmark.
Medicine Hat should have no problem meet-ing demand for land, at least for the short term. “Right now we’re in the enviable position ofhaving enough lots in inventory and approved for about 2,600 more people,” with landalready zoned to accommodate up to 10,000more, Reddy said.
While the ’Hat hasn’t boomed by Alberta stan-dards, it saw a 21.8 per cent hike in population for the 10-year period ending in 2009, or an average growth rate of about 2.2 per cent.
Much of the city’s population growthhas come from people moving in from Saskatchewan, which is very closeby, bu tcity officials wonder if that will continue as the Saskatchewan economy continues toimprove.
The biggest growth pressure in MedicineHat has been on the south end of the city, withresidential and commercial developments partof the mix. They’ve both led to some conges-tion along the Trans-Canada Highway (TCH)through the city, but the province has announcedplans to build a long-awaited interchange at the TCH and Dunmore Road, and that’s seen as a big plus in the battle against traffic problems in the southeast. The project is going to tender in2012, with completion likely in 2014.
The provincial government is also spendingto redevelop the city’s existing regional hospi-tal, under an ongoing $200 million budget.
Meanwhile, CFB Suffield and British Army training bases pump an estimated $60 million into the local economy each year.
The long-planned redevelopment of MedicineHat’s historic downtown has been largelya miss to date, something Reddy is quick to
TOP: Medicine Hat sees population swelling by 10,000 each decade for the next 40 years. And it has the land to handle it. INSET: British Army AS90 tank in training exercise at CFB Suffield near Medicine Hat.
Phot
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of M
edic
ine
Hat
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anad
ian
Forc
es
K L403-894-0534
www.keith lees.com
OFFICE COMPLEX1400 sq.ft. with 4 offi ces that have been completely remodelled.Good active location, close to major mall.Zoned I-B RETAIL/OFFICE MALL2000 sq.ft. Off street parking. Minimum reno's needed. Vacant.Zoned C-G VACANT LOT.68 Acres, Building plans approved. In large retail area.Zoned C-H
ETHBRIDGE P R O P E R T I E S
INDUSTRIAL LANDw/BUILDING FOR SALE
Asking $2,532,500 - Ponoka, Alberta11.55 acres, 8 individual lots with a 5000 sf unfi nished
panelized structure on Lot #10 (Lot #10 - 15 are 6 contiguous lots; Lots 19 & 20 are 2 contiguous lots)
Located at 49th Street and 60th Avenue in the north Industrial Park within the town limits.
Site is provided with all municipal services, and a railway spur connection to the main CPR line between Calgary and
Edmonton. Recent rail crossing was completed by town of Ponoka.
Excellent manufacturing site or stage area for Oil Sands or other Northern Industrial projects.
Lots are for sale individually or as a whole parcel. Owner may sell entire parcel within the Corporation with tax loss advantage to purchaser. MLS# C1019384, C1019385, C1019387, C1019388, C1019389, C1019390, C1019391 and C1019392
Mary Yuen-Sears, RealtorSUTTON GROUP - CANWEST
#1, 555 Hawkwood Blvd NW, Calgary, AB T3G 3K2
SOLDSOLD
SOLD
Looking for a quick buyout?
If you’re a property management owner look-ing to retire, cash out or reduce hours, we want to talk to you. We seek to grow, have cash, and are experts at tax-efficient, flexible options.
Keith McMullen 403-228-4303 [email protected]
B18 Alberta www.westerninvestor.com MAY 2012 WESTERN INVESTOR
INVESTMENT SALES
PRIME WEST EDMONTON LAND – RA7
CONTACT JEFF McCAMMON / DOUG BAUER OR DUSTIN BATEYKO
QUESNEL, BRITISH COLUMBIA
$2,950,000
CONTACT HOWARD McCANN /DOUG FOGG OR ADAM MARTINSON
MULTI-FAMILY OPPORTUNITIES
Apartment product is in demand! Please call for our opinion of value of your building!
CHRISTOPHER KAMPHIUSor RAPHAEL YAU
COMMERCIAL CONDOS
CONTACT BURKE [email protected]
DEVELOPMENT OPPORTUNITIES
+/- 0.947 ACRES: in Valemount, BC. Zoned C3
(Service Commercial) ................................ $49,500
+/- 1.05 ACRES: in Valemount, BC. Zoned HC
(Highway Tourist Commercial) .............$455,000
+/- 3.84 ACRES: Fronting St.Albert Trail, Zoned
IB (Industrial Business) ........................ $3,500,000
+/-13,812 SQ FT: 8204 – 106 AVENUE
………. .......................................................$495,000
+/- 0.31 ACRES: high visibilty location on 111
Avenue .......................................................$610,000
CONTACT JEFF MCCAMMONOR DOUG BAUER
WESTLOCK MALL, WESTLOCK, AB
CONTACT DAVID COONEY / DOUG FOGG OR HOWARD McCANN
DUGGAN MALL, CAMROSE, AB
MULHURST BAY CROSSING
INDUSTRIAL BUILDING FOR SALE
CONTACT JEFF McCAMMON OR DOUG BAUER
SPRUCE GROVE, DEVELOPMENT LAND
CONTACT DOUG FOGG OR MARK McCANN
OFFICE BUILDING FOR SALE
CONTACT IAN NEWMAN
FORT MCMURRAY, AB
CONTACT DOUG RAE
MERRITT, BRITISH COLUMBIA
CONTACT [email protected] or
FORMER WAL-MART, MEDICINE HAT
CONTACT HOWARD OR MARK McCANN
www.cwedm.com
CUSHMAN & WAKEFIELD EDMONTON2300 Sunlife Building, 10123 - 99 Street, Edmonton, AB T5J 3H1
PENDING
SITE
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EEddmmoonnttoonnAAppaarrttmmeennttss
TTooddaayy!!
www.apartmentsinedmonton.comSutton Central Commercial - AN INDEPENDENT MEMBER BROKER
APARTMENT OPPORTUNITIES
(780) [email protected] Gill
6 SUITES - $620,0009 SUITES, DOWNTOWN - $855,00012 SUITES, CONCRETE, WEST END - $1,272,00012 SUITES, DOWNTOWN - $925,00015 SUITES, SOUTHSIDE - $2,325,00015 SUITES, WEST END - $1,500,00030 SUITES – WEST END - $ 2,565,000
WESTERN INVESTOR MAY 2012 www.westerninvestor.com Alberta B19
For further information, contactGary & Renée Anderson
Hospitality Sales SpecialistsDirect: 780-432-1408
Carton Realty Ltd.Office: 780.444.6605
HOTELOPPORTUNITIES
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SHOPPING CENTRES,
STRIP MALLS, HOTELS & MOTELSAVAILABLE IN ALBERTA!
Call SammyEMPIRE REAL ESTATE GROUP
780-906-6652
WHITECOURT AREA, ALBERTAHAUSER'S HARD NINE
GOLF COURSE MLS® 26721 $999,900Own your own private golf course! Located 30 minutes from Whitecourt & Barrhead on the corner of Hwy 18 & Hwy 757. This nine hole golf course is now available for sale. There is a club house and a a personal log home. A year round business opportunity with nature trails and 10 campsites. Some equipment also included that helps maintain the property. An added benefi t is the property can be subdivided. This is a one in a lifetime opportunity.
OFFICE INDUSTRIAL MLS® 27129 $899,000
• Triple A tenant rating for another 4 years! Renewable 5 year term.
• Excellent investment. Good rate of return & AAA tenants.
• Offi ce - 1440 sq.ft Bay 1 - 1040 sq.ft Bay 2 - 3000 sq.ft. • Total Space - 6000sq. ft. plus mezzanine 2000 + sq.ft.
PAUL CHAUVET 780-268-3949
KATHY WAUGH 780-779-7248
PAUL CHAUVET 780-268-3949
EXIT REALTY RESULTS Whitecourt, Alberta
780-779-0090 www.paulandsue.ca
RED DEER, ALBERTACONDO DEVELOPMENT PROPERTY
PRIZE LOCATION ON PARK – ZONED FOR 65 UNITS $2,500,000
DOWNTOWN COMMERCIAL SITEBUILDING: 8,972 SQ.FT. ON .51 ACRES
PAVED PARKING, LOADING DECK $1,500,000
BUCK LAKE, ALBERTA100 FT. WATERFRONT, TREED, ALL SERVICES
EXCELLENT RETREAT $325,000
LACOMBE, ALBERTADEVELOPMENT PROPERTY DOWNTOWN – 34 ACRES
COMMERCIAL/BUSINESS PARK/INDUSTRIALREADY TO DEVELOP $2,500,000
RCR COMMERCIAL REALTY CORP.CALL GERRY OR BRAD
403-342-7700 or 403-302-9111 (Cell)www.rcrrealestate.com
Prime Real EstateSylvan Lake, Alberta
Call CARL STEPP cell: 403-358-9300www.sylvanlakehouseguy.com
RE/MAX real estate central alberta
Pizza Business, Restaurant/Bar Business, Land & Building across from the Beach.
from B17acknowledge.
“There’s been a lot of dancing around, but the numbers haven’t been right [for investors], and we need the growth to spur it on,” he said of the potential downtown makeover.
The city thought it had landed a developer to move ahead with a major office and mixed-use development on what’s known as the Glanville site downtown, but that fizzled this spring when River City Development Corp. nixed a plan for a seven-storey tower on the vacant site near City Hall.
Mayor Norm Boucher called the setback unfortunate, but said development of the prop-erty “remains a high priority of council, and we will discuss the next steps in ensuring its development.”
The collapse of the project signalled there’s not sufficient appetite for Class A office space priced higher above existing lease rates in the city right now.
March did bring some positive news for the region’s alternative energy industry – approv-al of a major transmission line to hook up the Wild Rose wind-generation projects being developed by Calgary-based NaturEner. The approval moves two large wind-power proj-ects in surrounding Cypress County closer to reality.
Retail action is focused on the south end of town, where merchants have been willing to pay rents in the $25-to-$30-per-square-foot range annually for the right locations.
Population 61,097 Median detached house price $257,000Projected 2012 housing starts 150Apartment rent (2 bdrm) $695/ monthUnemployment rate 4.6 per centWeb page www.medicinehat.ca
Jeff Lanigan, the new president of the Medicine Hat Real Estate Board , sees a steady upturn in the housing market. After a tough year in 2011, he said, there’s freshdemand in the sector right now, with home prices edging up early in 2012. In the first threemonths home sales were up 23 per cent to 334 units, and total sales values jumped an impres-sive 22.5 per cent to $81.1 million.◆
Brooks
U.S.A.
MEDICINE HAT
1
ALBERTA
SASK
ATC
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AN
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Investing?
B20 Alberta www.westerninvestor.com MAY 2012 WESTERN INVESTOR
City of WetaskiwinEconomic DevelopmentP.O. Box 6210Wetaskiwin, Alberta T9A 2E9 www.wetaskiwin.ca
For Details Contact:RONALD HOLLAND (780) 361-4404Edm Dir: (780) [email protected]
WESTERN INVESTOR MAY 2012 www.westerninvestor.com B21
Break Out of the Box
Call 780.361.6231 or visit WWW.JEDIALBERTA.COM
City and County of Wetaskiwin, Town of Millet
Land...red tape…business costs…they can have any transportation & logistics business feeling boxed in.
Get your business freedom back 30 minutes south of Edmonton, where red tape is a bad word, there’s affordable land to spread out on, business costs are competitive, a nose to the grindstone workforce has your back thick or thin, and there’s easy access to major rail, road, and air linkages. Home Hardware chose us as its distribution hub for western Canada; Santa Clausconsidered us.
n Tumbler Ridge, where houses sold for $25,000 a decade ago, it is hard to find one now for $200,000 as three coal
mines hit their stride.In Fort St. John, gas and oil plays have driv-
en house prices up 15 per cent in the past year, and long-suffering Kitimat could be poised for a pipeline-fuelled housing boom.
It is expectations that northern B.C. will drive most of the province’s growth during the next decade that has sparked a real estate revival. But some warn the north could be a minefield for investors.
Real Estate Investment Network CEO Don Campbell said it makes sense to invest in rental properties in towns like Fort St. John and Dawson Creek because of area mega-projects, high rental rates and relatively low vacancy.
But he said investing in homes in other parts of the north, such as Prince George and Kitimat, is riskier because few of the planned mega-projects have been confirmed.
A March Canada 1 Credit Union report projected that strong demand for coal, natural gas and copper would spur development across B.C.’s north in the next few years and drive a more robust economic growth than Metro Vancouver’s.
Campbell agreed with the report. He said B.C.’s north provides some of the best real estate investing opportunities in the province.
But he cautioned that investors could get caught up in speculation.
“We saw that happen in the leadup to the Olympics,” Campbell said. “Everybody ran to Squamish because they thought it was next to Whistler. The thing they didn’t understand was that there’s no mountain there for skiing.”
Speculation over northern B.C. mega-projects and job creation includes the possibilities that:
•Enbridge Inc. will win approval to build its $5.5 billion Northern Gateway pipeline from the Alberta oilsands across northern B.C. to a new marine terminal in Kitimat;
•BC Hydro’s $8 billion Site C dam project in northeast B.C. will be approved;
•eight mines generating $3.5 bil-lion in economic activity will open following the $400 million electrification of Highway 37; and
• high demand for coal from China’s steel-makers will continue to keep three Walter Energy Inc. metallurgical coal mines near Tumbler Ridge running near capacity.
But there are red flags waving: • the Northern Gateway pipeline threatens to
be derailed by loud and local opposition: every major town council along the B.C. route, plus most native bands and environmentalists, are strongly against it. As well, TransCanada Corp. has presented an alternative pipeline option that would link the Alberta oilsands to Quebec refineries and Atlantic ports; and
• Walter Energy, the Alabama-based mining giant that bought Western Coal last year for
FEATURE Coal, gold and energy speculation lure investors to Northern B.C., but some see trouble ahead
GLEN KORSTOM/WI STAFF
WESTERN INVESTOR
$3.3 billion, has seen its share values cut in half since then as the price of coal has plunged.
Yet real estate investors are salivating at the prospect of new jobs creating a population boom and a housing crunch.
At the end of 2011 the price for an average detached home in Fort St. John was $323,608. By March, according to BC Northern Real Estate Board statistics, that price was 15 per cent higher at $372,143.
Fort St. John realtor Mitch Collins said the community’s small size adds to housing-price volatility and that home values have actually risen about half that 15 per cent figure.
He added that even if BC Hydro’s proposed
Site C dam hits snags, investing in the regionmakes sense.
“We’re just seeing the tip of the iceberg.There are major projects that are moving for-ward right now that will have dramatic impact. That’s why there’s a lot of people investing in this region.”
Maple Ridge chiropractor Matt Boser start-ed buying multi-family properties in natural gas-rich Dawson Creek in 2008. He now owns 20 units in Dawson Creek and nearby Fort St.John, where a $297.9 million hospital is underconstruction.
All of Boser’s homes are rented. The averageone, he said, brings in about $2,500 per monthin rent whereas his mortgage, taxes, propertymanagement expenses and utility costs areabout $2,100.
“The mortgages are being paid down every month [in Fort St. John and Dawson Creek],”Boser said. “There’s positive cash flow, and the value of the properties are going up. That’sthe key. You don’t want to buy a place that has great cash flow but is going down in value.”
In Kitimat, average house prices have shot upfrom $142,000 in the first quarter of last year to $170,103 as of March 31 of this year, but houseprices in Prince Rupert have fallen from twoyears ago, as they have in Prince George.
Chris Mapson has experienced that fall. Heand his wife lived in Prince George between2007 and 2010, then moved to Kelowna.
They had bought a home in Prince George for $329,000 in 2007 but were unable to sell if for$290,000 in mid-2010. After showing the home65 times and getting no offers, they decided to rent it because the cash flow was more thantheir cost to rent a place in Kelowna.
The experience has left Mapson skeptical about home prices spiking across the north.
He said there are pockets of northern B.C. that are great places in which to own property,but investors should do their homework and not be lulled into a sense of false security byprojections.
“There are spin doctors who are cooking itup and northern economic development people who are spinning it one way,” he said. “There’s a lot of smoke and mirrors.”◆
This Fort St. John house sold recently for $579,000.
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Community Price March 2011 Price March 2012
Prince George $242,936 $241,704Prince Rupert $171,909 $168,907Fort St. John $308,622 $340,207Fort Nelson $321,845 $344,050Terrace $220,213 $200,926Kitimat $142,137 $170,103
Source: BC Northern Real Estate Board
B22 Alberta www.westerninvestor.com MAY 2012 WESTERN INVESTOR
Val ToffoliPhone: 780-707-9395
REALTY EXECUTIVES POLARIS4107 - 99th Street, Edm, AB T6E 3N4
Selling Edmontonsince 1987
APARTMENT BUILDINGS:
2 Units – Full Side by Side Bi-Level Duplex. Great West End Location. Needs some TLC & Priced Accordingly! ONLY
12 Ste Character Bldg. Central McDougal. Over 6.5% cap rate. Some upgrades.
!
20 Stes – Great Central Location – Extensive Upgrades – Lge Stes – Excellent Mix – 10 Yr Assumable Mtg – 2nd VTB Mtg possible.
WANTED: APARTMENT BUILDINGSHave Qualified Buyers Ready to Purchase!
Waterfront Pub & Detached Liquor Store
Land, buildings and businessPrince Rupert, BC $2,500,000
BC’s fastest growing super port city
JOHN JOHNSON Tel: 604-319-2504Fax: 604-463-5287
PRUDENTIAL STERLING REALTY LTD.
For Lower Mainland Pub Opportunities call:
PUBS For Sale FOR SALE Vegreville Garden Inn
Lance Frazier, Broker [email protected]
Carolyn Bull, Associate [email protected]
Toll Free:1 855 421 1488 dtzbarnicke.com
44 Room Motel on 7.69 Acres
Excellent opportunity to acquire this 44 room motel in Vegreville Alberta. The lodge contains a 200 seat restaurant , 75 seat lounge with 10 VLTs and a nightclub. Price $2,590,000
RICK D. JENKINS780-990-6120 cellEmail: [email protected]
POLARIS REALTY Commercial Realtor
INVESTMENT PROPERTIESFOR SALE!
42 UNIT APARTMENT in Leduc, near 50% twos and threes. 1981. Balconies above grade- 6 cap
2 ACRES on Ellerslie Road in Edmonton, busy south side corridor. Now being rezoned to DC2 for commercial, retail usage development- $2,170,00082 ACRE PARCEL adjacent to commercial corridor along St Albert Trail. Proposed land use concept to Mixed Use for Residential/Commercial/Business-$12,300,00068 FULLY SERVICED MOBILE HOME VACANT TITLED LOTS located within a modern Mobile Home Park in High Level, AB. MLS # E1014318 Price slashed to $975,000-PENDING
I need investment properties for all ICI categories. Looking for apartments, commercial/retail buildings,
industrial properties etc.
COMMERCIAL (RE/MAX Excellence)
17718 - 64th Ave Edmonton, AB T5T 4J5 (780) 429 - 1200 1(866) 481 - 2950
w w w.RemaxComm.ca
BUSINESS ONLY
Edmonton’s Business & Investment Specialists
Lebanese Restaurant - Bus. Only. Great Location - $495,000
CALL AYAZ OR SAM AT 780.641.1320
INVESTMENT Centre 16 - Spruce Grove Retail Building - $1.6M Jasper Avenue Commercial Condos - 1789 SF and 2216 SF. With
tenants. Well maintained. Ample parking. Priced to sell! 1789 SF - $579,000 2216 SF - $699,000
CALL AYAZ OR SAM AT 780.641.1320
MULTI-FAMILY2 x 9 Units - Strathcona - $2,300,00013 Units - Eastwood Strata Titled - $1,300,00015 Units - Glenwood - $1,500,00022 Units - Central McDougall - Contact For Pricing
CALL MIKI O’REE OR SEIF AT 780.641.1338Bottle Depot Businesses - 4 Locations in AB. Call For Info BOTTLE DEPOT BUYING & ORIENTATION - BOOK NOW!
***CERTAIN CONDITIONS APPLY***N Edm Coffee Franchise - Business Only - $215,000Auto Wash w/Land & Bldgs - Prime location in NE Edm - $2.99M
CALL RAJAN NULLIAH 780.441.5419
Self Storage Facility - 177 Units + 100 RV on 3.88 ac. - $1.9M
CALL MIKI O’REE AT 780.641.1338
CALL RAJAN NULLIAH 780.441.5419
CALL AYAZ OR SAM AT 780.641.1320
Nisku Commercial Land - 2 Lots Left! Zoned CS - PENDINGLAND
CALL AYAZ OR SAM AT 780.641.1320
20,000 SF+ OFFICE/RETAIL SPACEFort Road Centre - $16.00/SF
LEDUC PLAZA LEASE SPACE6250 - 50 Street Leduc - 5 Units Left!
JASPER AVE CONDOS W/TENANTS1789 SF - $579,000 2216 SF - $699,000
Wok Box Franchise - Two locations in Red Deer. May be purchased individually or together. North - $309,000 South - $394,999
Worth Your Buck - Dollar Store. Riverbend Sq. - $125,000 + Inv
CALL MIKI O’REE OR SEIF JIWAJI AT 780.641.1338
Office or Retail Space - Up to 20,000 SF available. Fort Road Centre. 13415 Fort Road. Retail or office uses. $16/SF Plus Op
LEASING
CALL MIKI O’REE OR SEIF JIWAJI AT 780.641.1338
LEDUC PLAZA - 5 Units Left! 1100 SF to 5500 SF. Join Quiznos, Second Cup, Pizza Hut, Sleep FX and more! - $20/SF Plus Op
CALL SAM NARAYAN AT 780.641.1320
7.93 ac C3 Zoning on Hwy 13 opp. of Airport $799,000
1.97 ac Industrial land in Stony Plain fully serviced ready to build warehousing etc. $580,000
Free Standing Strip Mall in Lloydminster $555,000
4 Plex in Evansburg (Sold)
Newly built SXS duplex in Edmonton Rent both sides or live in one & rent the other $334,900 ea side
Newly built 1350 sq bi-level in Athabasca $299,900
Marble Slab Ice Cream in Edmonton $240,000
Goldy Singh Empire Real Estate Group 780 499 8500 [email protected]
FOR SALE16 UNIT
CONDO COMPLEXAsking:
$ 2,800,000Contact: [email protected]
(780) 465 - 0246(780) 707 - 4904
LAKEFRONT PROPERTY
INVEST IN LAND WITH DEVELOPMENT POTENTIAL.
$2,700,[email protected]
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WESTERN INVESTOR MAY 2012 www.westerninvestor.com Alberta B23
$58,000 housing lots hit market The prospect of finding a more affordable
place to build your dream home in the Highway 2 corridor between Edmonton and Calgary recently improved in the commu-nity of Didsbury.
A developer there is now offering single-family lots in the range of $58,000 (including GST), down from around $95,600.
The lots are in what’s known as Phase 4 of the Valarosa Crossing subdivision, a six-phase project being developed by Terra Sar Developments.
Didsbury, which has grown to a population of more than 4,000, is situated just west of Highway 2 about 40 minutes north of Calgary International Airport. It’s the first commu-nity north of Airdrie, Calgary’s largest source of commuters.
Didsbury has been rated in the past as one of Alberta’s top-five growth communities, an honour the town trumpets on its web page.
East Village Project marks milestoneRedevelopment of Calgary’s East Village
(EV) neighbourhood by the Calgary Municipal Land Corporation (CMLC) recently marked another significant mile-stone.
The city-owned CMLC opened a $2.4 mil-lion experience centre in late March. The 8,000-square-foot centre will showcase planned developments in East Village, includ-ing those ready for construction in the former slum area that’s located just east of the heart of downtown.
The EV experience centre is described as a hybrid. It combines a visitor information cen-
tre that highlights the East Village story and the neighbourhood’s evolution with a sales centre showcasing the residential units and stylings of the neighbourhood’s “pioneering developers.”
“The partners chose to adopt a destination-style approach to promoting East Village,” said CMLC chairman Lyle Edwards.
Interested buyers are able to choose from among a variety of developments planned along RiverWalk, the Bow River and Fort Calgary.
Prices in one of the first highrises expected to be finished, a 191-unit building from Fram+Slokker, range from about $193,000 to $640,000.
Building permits post increase The first two months of the year produced
a notable increase in building-permit activity in Alberta’s capital.
The City of Edmonton granted permits for just over $441.3 million in construction in January and February of 2012. That’s a healthy increase of about 29.2 per cent from 2011, according to city statistics.
Things were similar in Calgary, taking out one mega project at the airport that was approved in early 2011.
According to City of Calgary figures, the city issued permits worth $609 million for the first two months of 2012, including permits for 838 new residential units. That’s an 88 per cent hike in new residential units over the same period last year.
Developer fees ruled illegalThe fallout from a key court decision in
November 2011 is starting to show up in how some Alberta municipalities collect fees from the development industry.
The Town of Canmore ceased collecting recreation levies from developers in early 2012, thanks to an Alberta Court of Appeal decision in a case involving the Town of Okotoks and a developer in that community.
The race for space in Edmonton’s office market is expected to heat
up very soon thanks to a resurgent oilpatch and the demand it is placing on office space in Alberta’s capital. The result: rents could increase by up to 20 per cent.
According to Avison Young, while office vacancy actually jumped slightly in Edmonton for the first three months of 2012 to 9.7 per cent from 9.5 per cent, the fundamentals of the economy point to increased space demand.
“As [drilling] rig activity increases, administrative office requirements for energy compa-nies grow, in addition to those for construction, engineering and professional service firms, which supply the energy sector,” Avison Young noted in its 2012 Q1 Edmonton Office Report. “With strong rig activity expected to continue in Alberta, we are forecasting sustained demand for office space and consistent increases in lease rates.”
There was net negative absorption in the first-quarter office market in Edmonton, accord-ing to Avison Young’s figures, though that was linked primarily to the suburban and govern-ment sectors of the market.
Energy and pipeline companies such as Enbridge have been very active. In just over six months Enbridge has swallowed up over 223,000 square feet of space in three different buildings in the city’s financial district, where asking base rents for the best space are in the $25-per-square-foot range.
Enbridge’s space acquisitions have financial-district landlords looking at rent hikes in the range of 20 per cent, according to Avison Young. Without the pipeline giant’s pickups in early 2012, the downtown financial district vacancy rate would have been 2 per cent higher in the first quarter.
Avison Young is predicting a “healthy and robust” Edmonton office market in the near term.
“Tenants should prepare for rising rental rates, and landlords can expect existing tenancies to expand while developers capitalize on market demand and build new office buildings, beginning in the suburbs,” Avison Young predicted.
Edmonton’s office rents could rise 20 per cent.
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The court essentially ruled that Okotoks was imposing off-site levies not allowed for under the province’s Municipal Government Act (MGA), and that those levies were not obtained under a voluntary agreement between the developer and the town.
The issue was summed up in a circular from the prominent Alberta municipal law firm of Fraser Milner Casgrain.
“The result for now is that these sorts of [non-voluntary] levies [for recreation facili-ties, engineering reviews, water licences] are no longer legally permissible,” the firm said.
The court found “that a municipality can-not use its natural person powers in a coercive fashion such as this and has no lawful author-ity to impose payment of offsite levies which are not specified in Section 648 of the MGA.”
While Canmore has ceased collecting recre-ation levies in the short term, the Bow Valley Builders and Developers Association, which represents the local development community, says it will continue to pay such levies in the long term, acknowledging their benefit to the community.◆
– Compiled by Dave Husdal
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Asking $585,000 P r i v a t e S a l e
B24 Alberta www.westerninvestor.com MAY 2012 WESTERN INVESTOR
Sano Stante | 403-289-3435RE/MAX Real Estate Central
Email: [email protected]
Website: www.sanostante.com
Retail/Medical/Professional BuildingHigh visibility retail/office 2200sf single level building on a 3,175 sf lot. Perfect for owner-user retail, professional service or medical. Ver-satile building for a multitude of uses. Tenant will lease back at $19 /sf net, which makes this a great invest-ment as well. 830 Edmonton Trail NE
$735,000
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INVESTMENT OPPORTUNITIESTRUMPETER POINTE VANCOUVER ISLAND, BC
COUNTY OF RED DEER, AB CAMPBELL RIVER, BC
TWO GREAT Investment Opportunities in Grande Prairie, Alberta
ß 70.65 acres only minutes away from cityß A great mixture
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ß All the hard work has been done in this
potential development
Investment Sale!
$549,000
$849,800
SHANE ZEYHA (780) [email protected] www.keyz.ca
TWO GREAT Investment Opportunities in Grande Prairie, Alberta
ß 10.5 acres property zoned Manufactured Home Community
ß Vacancy in Grande Prairie is extremely low, people are looking for lower priced homes
ß Basically in town and paved to the front of the lot
Each office is independently owned and operated.
Each office is independently owned and operated.
Great opportunity to develop on sites zoned R4 (High Density Residential). Adjacent to adult living community and near the Hos-pital & Health Centre. 1.4 acre site $499,000 or 0.76 acre corner site $ 200,000.
RE/MAX WETASKIWIN 2007780 352 9241
DEVELOPMENT OPPORTUNITY
CALL RANDY PLANT 780 361 9215
OUTSTANDING BUSINESS!
Complete business package ready for a new owner. Building, inventory, fi xtures, coolers and delivery van.
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This is a rare opportunity to acquire an established business in a high volume location.
RE/MAXEdmonton
ZAK MIMOUNI 780-604-4001
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WESTERN INVESTOR MAY 2012 www.westerninvestor.com Alberta B25
Each office is independently owned and operated.
Each office is independently owned and operated.
Larry Melanchuk, Associate Broker
Cell: 780.826.0100 www.coldlake.info
TF: 1.800.707.8374 A Division of Cold Lake 2000 Realty. Independantly owned & operated.
RE/MAXCold Lake
2000
$2B Expansion at Cold Lake oilsandsTake advantage of the economic spin offs
R3 SITE FOR 14 - 4 PLEXS AT $798,000
75.05 ACRES DEVELOPMENT LAND COLD LAKE NORTH $1,050,000
DEVELOPMENT SITE 5.08 ACRESDESIGNATED MULTI FAMILY $405,000
17.07 ACRES RESIDENTIAL SUBDIVIDSION63 LOTS ZONED R1B $770,000
7.2 ACRES ZONED HIGHWAY COMMERCIAL Services prepaid $749,900
OPPORTUNITIES
Renford Inn Motel – 112 rooms, 3.73 acres with enough land to add 60 rooms. Excellent hwy location. Sales: $1,600,000 (March yr end) List: $4,950,000Quizno’s Franchise – 5 yrs. operating - 5 yr. lease. Good rev and hwy location.Best Pub & Restaurant in Town – Excellent hwy location, centre of motel row. Sales: $1.6 Mil (end of Dec). Over 100,000 Net. 110 seat rest., 160 seat lounge, 890 seat banquet room. 6 VLT’s. Owner retiring. Asking only $327,900
Leo: 780-778-1207Brenda: 780-778-6678
WHITECOURT, ABCATCH THE BOOM!
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Brand New Offi ce/Retail MLS® #15604 - Building in Downtown Medicine Hat- 935 to 4300 sq ft- Starting at $12/sq ft + operating costs
Business & Building For Sale- Laundromat and dry cleaning business- Newer, state of the art equipment- Medicine Hat’s only solvent free cleaners.- Selling due to health reasons- $1,200,000
Envirogeotesting Business for Sale- Land, Building and Business- Selling due to health reasons $1,100,000
PETE VANDERHAM403-502-3200403-526-1111
RE/MAX Medalta Real Estate
Wayne Moen and John VanRiper
EDMONTON ALBERTA
Beautifully fi nished offi ce condo in great central location close to the river valley parkway system. 2476 sq.ft. on 2 levels plus a fi nished 1023 sq.ft. basement for a total of 3499 sq.ft. of usable offi ce space includes a total of 12 offi ces, board room, 2 kitchen areas, 3 bathrooms, large front reception area, and storage space. Property has 7 surface parking stalls with the possibility of leasing extra stalls. Newer shingles (October 2010), and air conditioning. 2 separate condo units with separate titles. Condo fees are $850 per month. $995,000
RE/MAX River City (780) [email protected] • www.waynemoen.com
INVESTMENTS CALGARY AREA
RE/MAX ACA REALTY
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64 seat restaurantnorth of Calgary
137 acresCrossfield
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279 acres
137 acres #2 highway frontage
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For more information on these and other properties
DON SACKETTcall
B26 Alberta www.westerninvestor.com MAY 2012 WESTERN INVESTOR
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WESTERN INVESTOR MAY 2012 www.westerninvestor.com B27COVER Saskatoon’s economy leads the nation, and high-end developers are eagerly jumping on board
Please see Saskaboom page B28
FRANK O’BRIEN
WESTERN INVESTOR
askatoon-born Paul Leier, 47, presi-dent of Cavalier Enterprises Ltd.,has had a front-row view of the
city’s transformation. Now, as his company opens Saskatoon’s first ultra-luxury hotel, Leier says his hometown has shifted into a new high gear.
Some would say overdrive.With the lowest office vacancy rate in 20
years, a booming retail sector, surging job growth and an accelerating economy that puts Alberta’s biggest city in the dust, Saskatoon is among the fastest-growing cities in Canada. In fact, according to some analysts, the only city that can match Saskatoon’s stride is Regina.
The Conference Board of Canada’s spring metropolitan outlook puts Saskatoon on top in the country for 2012 with gross domestic prod-uct growth of 3.6 per cent, followed by Calgary at 3.5 per cent and Edmonton at 3.2 per cent.
When Saskatoon recently commissioned consultants to look at the future, even the most bullish of its residents were likely surprised. Basically, the experts told the city to forget about its go-slow past and get ready for a fast-forward future.
Vancouver-based MDX Development’s 215-page report forecasts:
•a population increase of 100,000 people within 16 years, to 350,000;
•a 40 per cent increase in office space to 6.8 million square feet;
•a 7.5 million-square-foot increase in indus-trial demand, to 22.3 million square feet;
•3.1 million square feet of new retail space; and
•at least six more new hotels.“This city has changed forever,” said Leier.
“We have reached a new plateau.”He says it was spike in housing prices and
stars that gave him his first signal of a seismic shift in Saskatoon’s economy. For years, he said, $100,000 would have been considered a high price for a Saskatoon house. “Then, suddenly, new-home prices were $250,000 or more.”
This March the average resale house price was $318,946, up 9 per cent from a year ago according to the Saskatoon Region Association of Realtors (SRAR). Sales in the first quarter of this year were up 14 per cent from the same period in 2011. Most notable: sales of houses priced in the $450,000 to $500,000 range soared 243 per cent in March compared with March of 2011, said SRAR executive officer Jason Yochim.
The economic uplift is also seen in what Cavalier Enterprises – which includes three Leier bothers – has just opened: a high-end boutique hotel, where south Saskatchewan River-view suites go for up to $329 per night. The building was created through the upscale renovation of a Leier-owned apartment site. “The calibre of The James sets it apart from all other hotels in Saskatoon,” said Leier, “It is a testament to the strength of the local economy and the type of traveller the city now attracts.”
These travellers include engineers, invest-ment bankers and other high-rolling resource executives riding Saskatchewan’s current pot-ash, mining and oil boom, he said.
The province, however, does not appear to be in a boom but, rather, at the beginning of a per-haps decades-long upward trajectory.
Saskatchewan has the world’s largest pot-ash reserves – it accounts for 70 per cent of world sales – and prices are expected to soon hit record levels of around US$477 per tonne for a key fertilizer product with intense global demand.
Saskatchewan expects its oil revenues to
climb to $1.6 billion in 2012, up $129 million from 2011, on forecasts for higher prices and production, mostly from the giant “sweet crude” Bakken oilfields. It is estimated Saskatchewan also has two billion barrels of heavy oil locked in its untouched oilsands deposits.
In addition, the province is rich in diamonds and uranium, which have each fuelled a paral-lel exploration wave.
Little wonder then that Saskatchewan’s public debt was estimated at $3.8 billion as of March 31, its lowest level in 25 years.
Saskatoon, the largest city in the province, is where the resource boom is being felt the most. A Porsche dealer opened in 2010 and other high-end retailers are rolling into the city.
Cavalier is planning to join this rush by planting a new hotel in River Landing, now being developed as a mixed-use retail, residen-tial and entertainment enclave near downtown Saskatoon.
River Landing is divided into two phases. InPhase I, the city will be developing the former Gathercole industrial site and area east of the Senator Sid Buckwold Bridge and south of 19th Street. Phase 2 will include parcels of land alongthe riverbank bounded by the bridge to the eastand Victoria Park to the west, the former A.L.Cole Power site, and a number of old city elec-trical buildings and adjacent properties.
Overlooking the river in the downtown, River Landing represents the most significantundeveloped real estate lands in the province, according to the city.
Victor Majors Investment Corp., Tonko Realty Advisors Ltd. and Cavalier are lead-ing the development. The team’s vision is for a 10-storey hotel – to be developed by Cavalier– residential towers up to 27 floors, retail space and a 17-storey office tower, all around a cen-tral plaza. Public amenities also include the
TOP: Saskatoon’s first ultra-luxury hotel, The James, opened this year. INSET: Paul Leier, president of Cavalier Enterprises: “[Saskatoon has] reached a new plateau.”
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B28 Saskatchewan www.westerninvestor.com MAY 2012 WESTERN INVESTOR
from B27
Remai Art Gallery of Saskatchewan and a centre for performing arts and riverside walk-ways.
The office space will be welcomed in Saskatoon, according to Colliers International, which notes the city’s overall office vacancy rate has fallen to around 2.2 per cent, the lowest level in at least two decades.
Tom McClocklin, president of Colliers McClocklin Real Estate Corp. , said the vacancy in all asset classes will remain low in 2012, rental rates will be stable or even rise and development will continue in industrial, retail and office sectors.
“Demand for office space has been excep-tional as existing tenants in Saskatoon require additional space and many new companies related to the resource and engineering sectors locate to our city,” McClocklin said.
SNC Lavalin, Golder Associates and K+S Potash Canada are all in, or moving into, new spots downtown, he noted.
Besides new space, renovated buildings are acquiring major clients. Some major trans-actions include WorleyParsons Ltd. leas-ing two floors in the Birks Building, Stuart Olson Dominion occupying the Arthur Cook Building on 24th Street East and Canpotex expanding its space by 30 per cent in the Scotia Bank Building.
In the industrial sector, Saskatoon rental rates
Population 272,000Rental vacancy rate 2.6 per cent Class A Office vacancy rate 1 per centUnemployment rate 6 per centWeb site www.sreda.com
are expected to stabilize at $12 per square foot for new construction and $9 to $11 per square foot for existing space. About 500,000 square feet of industrial space were added in 2011, and speculative construction continues, according to Colliers. Industrial land prices now range up to $400,000 for a fully serviced acre.
All of the new construction has created an employment boom in the city and across the province. Saskatchewan’s ConstructionSector Council reports the province’s con-struction jobs have increased by almost 70 per cent since 2001, from 23,000 construction workers to 37,500 workers in 2011.
Industry leaders now predict that new hous-ing construction and renovation work in the province will likely continue at a steady pace until 2020.
Despite its strong economy, Saskatoon contin-ues to offer incentives to those building rental housing, in recognition of one of the lowest rental vacancy rates in Canada.
Under the Saskatoon’s New Rental Construction Land Cost Rebate Program, a developer can receive a $5,000 capital grant for every rental unit created, plus a five-year incremental property tax abatement.
“I think the incentives and the tax holiday that the city is offering definitely brought us in early into Saskatoon,” developer Sean Roy, CEO of B.C.-based Broadstreet, told the CBC. “But Saskatoon itself has a 2.6 per cent vacancy rate and it was a community that we
looked at as a target.”Broadstreet accounts for nearly half of the
most recently built apartments in Saskatoon.This is the biggest gain in rental construction
since the 1970s, according to Alan Wallaceof Saskatoon’s planning and development ser-vices branch.
The typical rent for a two-bedroom suite,$1,200 per month, puts the Broadstreet proj-ects on the higher end of the rental market.But they’re being snapped up in what is nowCanada’s go-to city for young professionals.◆
SASKATCHEWAN
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ReginaMoose Jaw
Swift Current
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WESTERN INVESTOR MAY 2012 www.westerninvestor.com Saskatchewan B29
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High volume Shell Gas Station, store and restaurant with 3.5 acres land on Trans Canada Highway. Located on #1 in Sask. Easy access for large trucks. Asking $1,250,000 PRICE REDUCED
For more information, call:
LILY STEWART 306-750-1153RE/MAX of Swift Current
Farm & Acreages Specialist - Call for info www.SaskLand4Sale.com
GRAIN LAND INVESTMENT
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Ed Bobiash Farm & Acreage Specialist
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RE/MAX Saskatoon
Shell Lake Gravel Land MLS® 399171 $1,199,000 Investment 136.94 acres just west of Shell Lake with gravel reserves. Seller has exposed aggregate for visual inspection. Seller has hired Resource Management International and buyers have access to an Electromagnetic Conductivity EM31 report.
SE Perimeter Investment MLS® 401141 $2,200,000 160 acres for investment opportunity SE corner of Saskatoon 1 mile from city limits. New perimeter highway will border SE corner of the land. Major urban development close to this land.
White Fox Hotel
ANDY EVERTON Sales Agent1-306-921-9396 Colleen Ratcliffe 1-306-921-8637RE/MAX Keystone Realty1-306-752-8470
Melfort SK
85 seat beverage room• off sale• 25 seat covered deck• VLT’s• 2000 sq ft main fl oor living quarters• 5 guest rooms• 10 min drive from Nipawin, SK• Services large recreational area•
110 seat restaurant• 40 seat lounge• Fully equipped• Parking• Very close to RecPlex and College• $299,000•
MLS® #419375
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MENT
ICR Commercial Real Estateicrsaskatoon.com
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INVESTMENT OPPORTUNITY2410 22nd Street, Saskatoon, SKAvailable Lease Space: 63,101 sq. ft. Land Size: 5.1 acres Annual Net income: $1,150,000.00 (2013 est.)Sale Price: $13,750,000.00Contact: Jim Woytiuk
INVESTMENT OPPORTUNITY 2174 Airport Drive, Saskatoon, SKBuilding Size: 28,663 sq. ft. Land Size: 1.33 acres Sale Price: $4,500,000.00
Contact: Jim Wotiuk
FOR SALE - GREAT LOCATION3062 Millar Ave, Saskatoon, SKBuilding Size: 18,546 sq.ft. Land Size: 38,332 sq. ft. (0.88 acres)Sale Price: $2,750,000
Contact: Stacy Dybvig
“Saskatchewan’s largest commercial real estate company”
INVESTMENT OPPORTUNITY 701 - 45th Street, Saskatoon, SKLand Size: 321.5’ x 445.9’ = ±143,356.8 sq. ft. Building Size: ±89,817 sq. ft. Net Income: $673,627.50 AnnuallySale Price: $8,200,000 (8.2 Cap)Contact: Ken Kreutzwieser
- Three bays with 10,800 sf to 32,400 sf contiguous space
- 28 foot ceiling heights- Dock and grade level doors- Over 30,000 sf compound- Immediate Highway #1 access
INDUSTRIAL SPACE FOR LEASEGreat Plains Industrial Park, Regina SK
Contact:Jeff Sackville306.359.9799www.avisonyoung.com
BUSINESS & LAND Maple Creek, SK
FOR SALE
Call 306.741.4373www.weswood-opportunity.com
FURNITURE STORE
Furniture store, established, profi table, 11 years in business. Fantastic reputation.
Located in Historic building.
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B30 Manitoba www.westerninvestor.com MAY 2012 WESTERN INVESTOR
Century-21 Westman.comBrandon, MB
Direct Line: 204-729-5074 Email: [email protected]
GROCERY STORE: 10,000 SQ. FT. 2 MILLION IN SALES, NEARLY NEW EQUIPMENT, STEADY CLIENTELE, GOOD LOCATION, GROWING TOWN. PRICE $999,000MOTEL: TRANS CANADA HIGHWAY, FLAG MOTEL, WITH RESTAURANT, 60 ROOMS, SALES MILLION PLUSHOTELS: I HAVE RURAL HOTELS STARTING AT $299,000. GOOD FAMILY BUSINESS.MOTEL: 12 ROOMS WITH LARGE LIVING QUARTERS AND A RESTAURANT LOCATED IN WINDMILL COUNTRY. PRICE $499,000RESTAURANT: CHINESE BUFFET LOCATED IN OIL COUNTRY. OWNERS WANT TO RETIRE. PRICE $299,000
BRANDON, MANITOBA
“WE HAVE RESTAURANTS, GAS STATIONS, GROCERY STORES, INVESTMENT PROPERTIES, FOR SALE AND IF WE DO NOT HAVE IT WE WILL FIND IT.”
FOR SALE
227 Stratified Rental Units
Chris Wieser [email protected]
604-687-7331
www.avisonyoung.com
Douglas McMurray [email protected]
Avison Young Commercial Real Estate (B.C.) Inc
Upscale In Ferno’s Bistro expands Winnipeg’s first family of fine French
food is expanding.In Ferno’s Bistro, a mainstay in French-
speaking St. Boniface for the past decade, has opened a second location in primarily English River Heights.
Chris Kirouac and his father, Fern, have partnered in the new location, continuing a family tradition that dates back more than three decades.
Fern Kirouac Sr., Chris’ grandfather, bought the Red Lantern in 1980 and La Vieille Gare three years later. Chris said many of In Ferno’s regular clients came from outside of the French neighbourhood anyway, so he didn’t see a problem moving into an English-speaking community.
There will, however, still be some French-serving staff in the new location so longtime patrons can be served in their native tongue.
“We’re still a French restaurant,” he said.
Ad agency signs Spiers The latest recruit to McKim Cringan
George is one of the best-known ath-letes to come out of Manitoba in many years.
The Winnipeg-based advertising agency has brought Adam Speirs, a two-time winner of the Manitoba Amateur who played a decade on the Canadian tour, on board as an account co-ordinator.
“Business and golf go hand in hand, don’t they?” he said.
When the 33-year-old decided it was time to hang up his golf spikes, one of his long-time sponsors, Drew Cringan – a partner in his new firm – convinced him to pass along his resume.
Peter George, the firm’s CEO, said Speirs brings a world of experience from the school of hard knocks. Plus, having an employee who has rubbed shoulders with golf’s greats is pretty cool, too.
“He needed to raise money and sponsor-ships for his career. He has made connections on his own with the business community to raise money.”
“Adam has competed in the U.S. Open twice. I’ve never had anybody working for me who has done that,” he said.
Manitobans are “sports crazy” If it wasn’t official before, it is now –
Manitobans are sports crazy.There were more tickets sold to professional
sporting events in the province in the past 12 months than in any year in the province’s history.
Nearly 1.3 million fans were scanned in – turnstiles seem to have become a thing of the past – to see the Winnipeg Jets, the Winnipeg Blue Bombers and the Winnipeg Goldeyes. The previous high of less than 1 million tickets sold was set nearly two decades ago.
The reborn NHL franchise led the way with a sold-out MTS Centre for 41 home games, good for more than 660,000 butts in chairs. The Bombers had the best year in their his-tory, too, selling out eight consecutive regu-lar-season games and one playoff game, for a total of more than 325,000.
The American Association’s Goldeyes, meanwhile, led their minor league in atten-dance with more than 286,000 fans taking in 50 regular-season games and a pair of playoff contests.
The unprecedented fandom for the city’s sports teams, however, has had a correspond-ing negative impact on attendance in the arts. The Winnipeg Symphony Orchestra, Royal Manitoba Theatre Centre, Manitoba Opera, Winnipeg Art Gallery and Royal Winnipeg Ballet all saw their attendance fall this past winter season.
The Jets, meanwhile, are sold out for the next two years.
The weather bomb of 2010 is final-ly receding from the minds of
Manitobans. The two-day October storm whipped up
near-tidal waves that pounded the shore-lines of Lake Winnipeg and threatened to swallow many of the most valuable cottages in the province.
Not surprisingly, the bottom of the market subsequently fell out as many cot-tage owners were forced to stem the tide by erecting revetments to prevent further damage.
As the hysteria has died down, the market for lakefront cottages has rebounded, according to Melodie Ateah, owner of Ateah Realty Ltd.
“It was a rough couple of years. People had to fix up their properties but I’m finding [the storm] isn’t as much of an issue now. We’re starting to move lakefront lots,” she said.
Lakefront cottages in communities such as Victoria Beach, Lester Beach and Hillside Beach are listing from $169,999 to $939,900.
Ateah cautions that not every cottage is out of danger as there are still some erosion prob-lem areas at Victoria and Lester beaches. Unfortunately, that comes with the territory.
“There is that risk when you buy lakefront. There are always going to be erosion issues with lakefront cottages because of the water and the slumpage of the land,” she said.
Conversely, things are quiet on the lake’s hotel front. There is still hope that a buyer can be found for the Radisson Hecla Resort, a 90-room hotel in Gimli on the west shore, which was placed into receivership two years ago. Despite millions of dollars in upgrades, it failed to attract enough patrons and catering business outside of the summer months.
Lake Winnipeg cottage prices have recov-ered. This one is priced at $750,000.
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Rentals snapped up downtown Portage Avenue has always been bustling
with people in downtown Winnipeg but it has been restricted to street level – until now.
Twenty of 75 apartment units in the refurbished Avenue and Hample buildings are now occupied and the developers are optimistic the rest will be leased out shortly. Typical rent for a one-bedroom is $925 per month.
All the apartments have one interesting feature – tiny balconies overlooking Portage Avenue, right across the street from the MTS Centre, the home of the Winnipeg Jets and
the centrepiece of a more-than-$600-million revitalization of downtown Winnipeg called the SHED (sports, hospitality and entertain-ment district).
The latest project designed to attract Winnipeggers to live downtown is the brain-child of brothers Mark and Rick Hofer. They were helped along by $3.8 million in finan-cial assistance from the city, the province and CentreVenture Development Corp., Winnipeg’s downtown development agency.
The units range from 400 square feet to more than 1,000 square feet.
The $12.4 million conversion was unveiled just days after demolition began of the nearby Wild Planet and A&B Sound buildings, which will make way for a new 15-storey hotel tower.◆
– Compiled by Geoff Kirbyson
1-800-661-6988
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WESTERN INVESTOR MAY 2012 www.westerninvestor.com Franchises B31
Carstar among top franchises
Carstar Automotive Canada Inc. was named one of Canada’s 50 best-managed
companies for 2011 by Deloitte. The Hamilton, Ontario-based company, with more than two-dozen locations in Western Canada, primarily across Alberta, was rec-ognized for its comprehensive management, staffing and technical strategy.
“We are very honoured to receive this award,” said Sam Mercanti, Carstar president and CEO, who passed on thanks to his fran-chise partners for “their involvement in help-ing us achieve this milestone and for their ongoing contribution in the improvement of our business.”
Canada’s 50-best-managed companies is a national awards program recognizing firms that have established world-class business practices. Winners were honoured at the annual awards gala in Toronto last month.
Other national franchise winners for 2011 include A&W Canada and White Spot Canada.
Carstar franchise costs vary depending on level of services; a breakdown in prices was not made available as Westerm Investor was going to press.
News, views and updates on Canada’s franchise industryA new low-cost tobacco retail concept has proven a
cash-flowing franchise in Airdrie and Olds, Alberta, and is set to expand across Western Canada, according to Ed Alfke, chairman of Cheap Smokes & Tobacco. Alfke, founder of Rent-A-Wreck, said Cheap Smokes could be a similar franchise sleeper.
“I am amazed at the sales volume. I have never seen a franchise achieve $1.2 million in its first year of sales in a town, like Olds, with a population of just 9,000,” Alfke said, adding that the Olds outlet was hitting sales of $140,000 per month after just 10 months in operation.
The Cheap Smokes franchise, owned by Lisa and Jeff Lawrence, is a simple concept: undercutting competition on prices to draw in customers and then upselling with smoking accessories and higher-priced cigars.
In Alberta, a pack of 25 major brand-name cigarettes costs an average of $11.32, with a carton of 10 usually selling for more than $100. Cheap Smokes sells a carton for $88.50.
“Our pricing structure makes us just a bit lower than Superstore and much more competi-tive then 98 per cent of the other locations [where] you can purchase smokes. However, the biggest difference is we are specifically servicing our smoking customers and have built a happy place just for them,” Jeff Lawrence said.
This may be a key advantage; in most of Canada smokers have become a social pariah, though Health Canada estimates that 21 per cent of the adult population still lights up.
Alfke said a Cheap Smokes & Tobacco franchise would cost about $25,000 and “is an ideal investment for a small-town market.”
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Cheap Smokes proves an Alberta cash cow.
Nurse Next Door moves into U.S. Vancouver-based Nurse Next Door
Home Care Services will be opening two locations in the U.S., one in Medford, Oregon, and one in Fort Collins, Colorado, this year.
John DeHard, co-founder of Nurse Next Door, said, “We’ve worked very had to find the right partners to launch our initial U.S. franchise locations. We’ve built a very suc-cessful model in Canada and we’re excited to bring this success to the U.S. market.”
The company plans to open 15 to 20 more locations in the United States in 2012, while continuing its growth in Canada. Nurse Next Door was recently named among BC Business magazine’s 2011 best companies to work for in B.C.
“All of the new franchise locations will bring a unique caring experience into their clients’ homes and also create jobs for local residents,” said co-Founder Ken Sim.
A Nurse Next Door franchise costs between $85,000 and $120,000 and has an initial fran-chise fee of $30,000.
PropertyGuys.com aims at Calgary Discount realtor PropertyGuys.com is
pushing hard into the Calgary residen-tial real estate scene, says president and CEO Ken LeBlanc. Although we have a couple of great franchise operators in Calgary already, we don’t have enough coverage yet to be a true force in this rapidly growing industry.”
From its beginnings in Moncton, New Brunswick, 12 years ago, PropertyGuys.com
Carstar president Sam Mercanti (centre) with members of the Carstar executive team.
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currently serves over 600 communities across Canada.
PropertyGuys.com has a new franchise open every 13 days on average, LeBlanc said. A franchise costs between $40,000 to $70,000.
Tim Hortons aims for 700 new outlets in CanadaThere’s room in the market for 700 more
Tim Hortons in Canada, the chain’s CEO told investors recently, a finding he admit-ted could surprise some observers.
“You might think that with our strong market share there might be limited oppor-tunity for growth in Canada. That is simply not the case,” said Paul House, speaking at
the Raymond James Annual Institutional Investors Conference in Orlando, Florida, last month. “We believe that there is an opportu-nity for 4,000 locations in Canada.”
Tim Hortons now has 3,295 restaurants in Canada, 714 across 10 U.S. states and five in the United Arab Emirates.
Last year, Tim Hortons Inc. stock went into a tailspin and the company was criticized for expanding too quickly after the sudden departure of Donald Schroeder as president and CEO.
But House said Tim Hortons plans to open between 155 to 175 new locations in Canada and up to 100 full-serve restaurants in the U.S. in 2012. At the same time it wants to increase same-store sales by 3 per cent to 6 per cent in Canada and the U.S.
A Tim Hortons franchise costs from $430,000 to $480,000 to start.◆
– Compiled by Kevan O’Brien
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