East Hastings Development

We’ve talked about builders and pre-sales, and upcoming supply.  I’ve noticed substantial development along the East Hastings strip in the recent past. One development was Hastings Gate, sold by VMG Marketing (Fred Moy and John Skender).  This group has now put up the marketing sign a block away at the old Minute Tune location.  It will be interesting to see how this next project develops.

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7 Comments

Filed under New Supply

7 responses to “East Hastings Development

  1. jojuchst

    Is this at Victoria (across the Elementary school?)

    Actually there are many developments along the Hastings corridor. Going west-to-east we have Sugar (at penticton), hole dugged (at Skeena besides Mcdonalds), Tramonto (at Rosser), and another VMG development (at Willingdon)

  2. robchipman

    jojuchst:

    You’re right on all of those. Lots of development. Rosser is Willingdon Heights, and a little better neighbourhood, perhaps. The others are in locations that many would turn their noses up at, though. Mind you, if you’re going to develop a lot and change an area, where do you go? Expensive area or cheap area? Cobalt and American become CityGate. What do Whalley and East Hastings become?

  3. Jay

    One thing that kind of stood out to me when I drove along Hastings near Nanaimo/Templeton was that there was a new development that seemed fairly fully occupied up top in the residential condos but the street level shops were completely empty. I suppose it’s a bit of a chicken and egg scenario. The neighbourhood isn’t that bad IMO but I’m curious to see if residents in the immediate area will support the new businesses that will pop up. Personally, I live about a click and a bit away and I’m not really drawn to the area except for occasionally picking up a few veggies from Donalds. The only other draw for me is LD and I’d rather go to the one at Brentwood.

  4. jojuchst

    The best portion of Hastings I prefer is the strip between Gilmore and Willingdon (may be stretch over to as far as gamma) where the historic Helen’s children shop is located.

    This section is flat and level so it’s easy for walking, has a mix of restaurants (Italian, Greek, Romanian, Chinese, Japanese, Thai, DQ, Starbuck, McDonalds, Quiznos, Subway, beer and wine) Choice of produce and grocery stores.

    The only complaint I have is that the buildings are a bit old. Hopefully with the roof collapse in the building at the north side of Hastings between Rosser and Willingdon some developer will put something new in its place. There’s obviously the corner lot at Willingdon (old firehall) going through the permit application according to Fred Moy. There is also the empty lot between Esmond and Ingleton which sometime ago was talked about to being the Cortian culture center. And along the northern block between Carlton and Madison, those shops could use some redevelopment.

    If all these location were developed and a mix of restaurants and shops were to set up then this area will be prime.

    If they only take out that HOV lane during rush hour… 🙂 (tunnel it from Cassier until SFU maybe?)

    Not quite Kits but quite close.

  5. But not too cheap an area. Or is it? Recently the 5 unit townhouse row I live in (Around N Templeton/Dundas) was sold for about 1 M. The gross rents are about 45K/yr and heat/hot water must cost at least 8K/yr. I don’t know what the taxes are. Would this work for other investors? Seems like a very low return to me.

  6. jojuchst

    “Seems like a very low return??”

    What return? At 45K-8K (not deducting tax and other expenses) I can only see a break even if it was sold for 600K w/ mortgage @ 4.5%

    So unless the place appreciates, or rent increases substantially I believe it’s bleeding at least $1500 per month.

  7. robchipman

    Multi-family is selling for very low cap rates these days. We talked about that a few months ago. Part of the problem is that the stuff isn’t for sale in slower markets (its owned by guys who believe in RE and can wait). The guys who buy it tend to believe in upgrade it immediately to increase value/rents, or buy the future when you can. It seems to not make sense, but they’re not stupid guys, so what’s getting missed sort of thing.

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