Lessee's interest in ground lease

Overview

A unique opportunity to purchase two neighbouring income producing properties in Vancouver’s coveted Westside. Johnston Allen Properties Ltd. (the “Lessee”) is selling a ground lease interest with the City of Vancouver (the “Lessor”) with potentially 41 years remaining (21 years on original term and 20 year right of first refusal).

Ground lease summary
The subject properties are subject to a ground lease with the City of Vancouver which originally commenced in 1977 for a period of 60 years which expires in 2037.  There is a 20 year right of first refusal beyond this which is also in favour of the Lessee.  There are two sets of rent review periods; one for the commercial and one for the residential.  Due to the nature of the commercial sublease as a net lease, the tenant is responsible for the ground lease payment.  As for the residential property (gross leases in place), the Landlord is responsible for the ground lease payment.  For further information, please contact Cynthia Jagger.

Highlights

• 50 suite high-end meticulously maintained rental apartment building featuring outdoor balconies and fantastic views of Burrard Inlet, Downtown Vancouver and the North Shore mountains from upper north facing units
• All suites have undergone an extensive renovation program – excellent layouts and condo quality finishing
• Major security upgrade with video surveillance and “keyless” or “fob” entry system
• Adjacent commercial space operated by Kids & Company Day Care – state-of-the-art indoor and outdoor space and extensively renovated facility with a long waiting list of applicants 
• Kids and Company is consistently voted one of the best daycare facilities in Vancouver
• Tenant covers all additional costs, including ground lease payments on the property
• Secure underground parking, with a total of 62 stall for the residential portion and 62 for the commercial portion
• Buildings improved on over an acre of prime Westside land
• Rental rate upside potential on suite turnover for the apartment building and lease in place with excellent rents which step over time for the commercial property

Upgrades

Apartment building

• Extensively renovated suites with new countertops, flooring, tile, cabinetry and appliances
• Updated lobby area – new paneling, tile work  
• Upgraded security systems
• Plumbing replaced for entire building including main supply to street in 2009
• Shut off valves installed for each unit (approx. 2009)
• FOB system installed with ability to temporarily activate and deactivate individual entries
• Large workshop area with renovation materials (new carpets and tile, etc.)
• Mighty therm replaced in 2009 and serviced annually
• Residential parkade was enclosed and upgraded to be fully secure in 2009.

Commercial building

• Commercial building was essentially rebuilt and substantially expanded in 2009
• Daycare space has been improved with high-end finishes and fully integrated outdoor space
• Process has been approved by the Vancouver Coastal Health Authority which has stringent regulations
• Commercial parkade (previously surface stalls) was enclosed and upgraded to be fully secure in 2009

Location

Laurel Park Apartments is located in Vancouver’s Fairview Slopes, one of the most popular and convenient rental neighbourhoods due to its proximity to the downtown core, major bus routes and shopping. False Creek’s Charleson Park is only a block away and provides easy access to the Seawall leading to Granville Island Public Market. Granville Street is a 5 minute walk away – a prime retail corridor considered one of Vancouver’s trendiest shopping destinations which offers tenants easy access to numerous amenities, art galleries, coffee shops, restaurants, banks and entertainment, to name a few.