MAGNOLIA TOWNHOMES
3690 COUNTRY CLUB DRIVE, NANAIMO, BRITISH COLUMBIA
36 Unit Rental Townhome Complex | Attractive In-Place Financing | Competitive Cap Rate
The Award Winning Magnolia Townhomes represents a rare opportunity to acquire a newer constructed townhome rental complex centrally located in Nanaimo, BC and just steps from grocery anchored retail
THE OPPORTUNITY
The CBRE National Apartment Group – BC are pleased to present the unique opportunity to acquire the Magnolia Townhomes, a rare purpose-built multi-family investment property in Nanaimo, BC.
The Magnolia Townhomes represents the opportunity to acquire a newer 36-unit purpose-built townhome rental complex prominently situated in the rapidly growing city of Nanaimo, BC, and just steps from an abundance of tenant friendly amenities at the grocery anchored Country Club Shopping Mall. The Magnolia Townhomes was initially constructed in 2018, is consistently fully occupied and the property is well maintained under professional property management.
The property is comprised of two-storey two-bedroom townhomes and one-bedroom single level units, appealing to a wide range of prospective tenants. Each of the suites have their own entrance, are nicely improved with modern quality finishes, and include ensuite laundry, electric baseboard heat and electric hot water tanks that are individually metered and paid for by the tenants.
The Magnolia Townhomes provide investors with a competitive initial
cap rate with the ability to grow cash flow and yield by capitalizing on the existing 15% to 20% upside in rents through an active leasing program as units turnover. In addition, there is attractive in place CMHC insured financing that may be assumed at terms that are significantly below market, which can further enhance the overall return on investment. Further detailed information on this exceptional multi-family property can be acquired by signing a Confidentiality Agreement and connecting with our team.
PROPERTY PROFILE
The Magnolia Townhomes is a newer built (2018) rental townhome complex comprised of two-storey two-bedroom townhomes and one-bedroom single level units with a total of 36 units situated on a 1.05-acre land parcel. The property is wood frame construction on slab with 38 surface parking stalls available at the rear of the property as well as city street parking on Country Club Drive. Every unit has either a private patio or balcony, modern finishes and feature stainless steel appliances, stacked in-suite laundry and fresh air intake system. The buildings’ heating and hot water systems are electric and individually metered to each suite and paid for by the tenants reducing the owner’s utility costs. The property consists of 33,930 SF of net rentable area and 88% of the units are two level townhomes. The Magnolia townhome design style is a rare and sought after alternative for tenants desiring more space than typical purpose-built rental apartment buildings offer.
PROPERTY HIGHLIGHTS
+ Newer Construction (2018)
+ Stacked in-suite laundry and storage in each unit
+ Family oriented with a majority of units being two-level townhomes
+ Every unit has either a private garden patio space or balcony
+ Individual Electric Hot Water Tanks
+ Electric heat and hot water paid for by the tenants
+ Pet friendly rental complex (under 30 lbs)
+ Private and gated entrances and patios
+ Professionally managed
+ Proud recipient of the 2019 VIREB award in the Multi-Family Building Award category
SALIENT DETAILS
Rental Upside
Rent Pricing & Suite Mix
Suite Mix Breakdown
Strategic Floor Plans
High-Quality Finishes
Investment Highlights
NEWER CONSTRUCTION | PURPOSE-BUILT:
2018 construction with condo quality finishes limiting future capital expenditure requirements
CENTRALLY LOCATED:
Centrally located in Nanaimo just minutes from Nanaimo Harbour and adjacent to grocery anchored Country Club Mall
UNIQUE PROPERTY & EXCELLENT SUITE MIX:
Two-storey two-bedroom townhomes (849 – 1,215 SF) and one-bedroom single level units
RENTAL UPSIDE
15% – 20% Upside in Market Rents
AWARD WINNING CONSTRUCTION:
2019 VIREB Commercial Building Awards Winner
FAVOURABLE ASSUMABLE DEBT:
3.34% Interest Rate and $8,114,605 Remaining Principal (Oct 2023) expiring Sept 2029
NANAIMO RENTAL MARKET AND POPULATION GROWTH
Nanaimo consistently continues to rank as one of the strongest rental markets in Canada with CMHC reporting 13% rent growth year-over-year. The Regional District of Nanaimo documents that there is an increasing shortage of affordable rental and owned housing for those in low to moderate income brackets. With Nanaimo being the fifth fastest growing region in Canada due to record high immigration combined with supply imbalances, this demonstrates a strong and positive outlook for the future of Nanaimo’s multifamily market fundamentals.
Sources: Statistics Canada
Vancouver Island Free Daily
Douglas Magazine
Canadian Encyclopedia
NANAIMO ECONOMIC HIGHLIGHTS
- The City of Nanaimo, also known as “The Harbour City”, is situated mid-island on the east coast of Vancouver Island and was the fastest-growing census metropolitan area on Vancouver Island and one of the top five fastest-growing communities in Canada over the past five years with a population in excess of 115,000 and a growth rate of over 10.3% between 2016-2021
- Nanaimo is especially attractive to newcomers due to the accessibility and prosperity, offering two ferry terminals connecting residents to the lower mainland and other communities on Vancouver Island. The prominent mid-island location provides for connection to all major economic hubs, benefitting the local economy
- Having adopted the concept of Doughnut Economics as a guiding principle for sustainable development, Nanaimo City Council officially implemented “Nanaimo Reimagined”, a 25-year framework designed to achieve five goals: a green Nanaimo, a connected Nanaimo, a healthy Nanaimo, an empowered Nanaimo and a prosperous Nanaimo
- The city capitalizes on its excellent harbour used for trading, servicing and distribution industries as well as the health, social services and construction sectors largely contributing to the economic development of the city
- The number of jobs in Nanaimo increased by 10.8% between 2016-2021, with nearly 1,500 new jobs in health and social services, over 700 in construction and close to 700 in educational services
- The unemployment rate in 2022 was 3.6%, which is 1.5% below the Canadian national average of 5.1%.
THE LOCATION
Nanaimo, BC, also known as the “Harbour City”, is a rapidly growing city located mid-Island on the East coast of Vancouver Island, approximately an hour and a half North of the Capital City of Victoria and just two hours from Vancouver via Departure Bay Ferry Terminal. Nanaimo is a highly desirable place to live and work due to its proximity to major economic centres such as Victoria and Vancouver via ferry, seaplane or car, while still offering Vancouver Island’s natural beauty and lifestyle. The city is the fifth fastest growing region in Canada and comprises 61% of Vancouver Island’s population, with a population growth of over 10% in the last 5 years.
The Magnolia Townhomes are located off the intersections of Norwell Drive and the Island Highway in North Nanaimo, adjacent to grocery anchored Country Club Centre and just 10 minutes from Downtown Nanaimo. The property’s convenient location right off the Island Highway, one of the busiest thoroughfares in Nanaimo, offers tenants easy access to transit, amenities, services, schools and ensures the property will continue to attract and retain high quality tenants.
Nanaimo is attractive to a wide range of tenants and investors and offers an excellent cross-section of tenant-friendly amenities such as Country Club Centre, Nanaimo North Town Centre, and the 748,000 SF Woodgrove Centre, Vancouver Island’s largest shopping Centre, all within a 10 minute drive from the Magnolia Townhomes. Additionally, Nanaimo is home to Vancouver Island University (VIU), hiking trails, beaches and over 1,000 hectares of City parks.
LANCE COULSON
Executive Vice President
Personal Real Estate Corporation
National Apartment Group
BC CBRE Limited, Capital Markets
TEL: (604) 662-5141
EMAIL: lance.coulson@cbre.com
GREG AMBROSE
Vice President
National Apartment Group
BC CBRE Limited, Capital Markets
TEL: (604) 662-5178
EMAIL: greg.ambrose@cbre.com
