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City completes sale enabling 152 units of new affordable housing

November 21 2016

West end of vancouver with snow capped mountains

We have completed the sale of our property at 601 Beach Crescent to local developer Pinnacle International Inc.

As part of the sale, Pinnacle has agreed to develop and transfer "turnkey" 152 units of affordable housing to us on that site.

Offer to provide best overall value

The property was marketed for sale by way of a public invitation to offer which closed on August 16, 2016. We received four offers and following our evaluation (in accordance with the terms set out in the Invitation to Offer, with input by internal and external legal counsel to ensure the fairness and integrity of the process), Pinnacle's offer was determined to provide the best overall value.

Vacant site a "Granville Bridge Gateway"

601 Beach Crescent is at the north end of the Granville Street Bridge between the bridge offramp and Seymour Street, south of Pacific Street.

This property is identified as a "Granville Bridge Gateway" site in the General Policy for Higher Buildings. This means that we may consider a higher building on the site, subject to the terms of the policy, any other applicable policies, and a rezoning.

A portion of the property was purchased in April 1998 and consolidated with additional property acquired in 1999. It has remained vacant since then.

Financial details

  • $20 million: base purchase price
  • $44.5 million (estimated): design, financing, and development costs to provide the “turnkey” 152 affordable housing units to the City of Vancouver
  • An adjustment price of $365 per every additional buildable square foot above the current zoning that may be approved as part of a future rezoning and development of the property. For example:
    • If 200,000 additional buildable square feet were approved at rezoning, the adjustment price would be an additional $73-million payment to the City of Vancouver
    • If 350,000 additional buildable square feet were approved at rezoning, the adjustment price would be an additional $127.75-million payment to the City of Vancouver

    These amounts are only examples and the actual amount of the adjustment price will depend on the approval of an application to rezone the property for future development, which is subject to a public hearing.

Creating affordable housing options

We are working to increase the choices for affordable housing. This includes creating new affordable housing options by ensuring resources and projects align with Council's goals and objectives, and identifying opportunities where the greatest impacts can be made.

The sale of this site to Pinnacle leverages the value of this property to build the required affordable housing on site, as well as provide additional cash proceeds from the sale which we can allocate to appropriate civic objectives, including the funding of additional affordable housing.

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