A 45-suite apartment building in 100 Mile House sold last month for more than $1 million over assessed value.
The building, at 550 Cedar Ave., had a 2021 BC Assessment value of $2.01 million and was sold for $3.29 million on Sept. 30.
“It did sell for way over the assessment,” broker Michael Marckwort of NAI Commercial said, noting the asking price was $3.4 million. “There’s not a lot of product out there in terms of apartment buildings, especially in smaller communities. It’s also a good, stable investment when people buy these buildings, for the long term.”
Pricing for this type of building is based, in part, on its “cap rate” – essentially, a rate of return. The Cedar Avenue property had a cap rate of 6.43 per cent with a net operating income of $218,723 annually.
Marckwort said the new owners are a Lower Mainland-based company that owns a few other buildings up north.
He said they plan to keep the same tenants and property manager in place with no major changes, aside from a few possible upgrades.
“There’s a lot of storage in the building that could possibly be turned into an extra suite,” Marckwort said. “There’s not going to be a lot of change but I think they’ll breathe some new life into it.”
The former owners, Marckwort said, are a Salmon Arm couple who are shifting to retirement.
“It was just a good time for them to sell.”