Investment through CMHC’s Rental Construction Financing Initiative was crucial to converting 178-unit building from condos to purpose-built rental
VANCOUVER, BC, Aug. 4, 2023 /CNW/ – Wesgroup Properties, one of Western Canada’s biggest private real estate companies, is thanking the Government of Canada and the Canada Mortgage and Housing Corporation (CMHC) for providing a fully repayable $79.35 million loan, announced yesterday, that will allow them to convert an under construction 178-unit residential building in Vancouver from condos to secure, purpose-built rental.
“I cannot emphasize enough how instrumental this investment from CMHC has been in making it possible for us – and developers across the country – to build new rental housing,” says Beau Jarvis, President of Wesgroup Properties. “In an environment with rising interest rates and construction costs, the secure, reliable financing provided by CMHC’s Rental Construction Financing Initiative is crucial to making the construction of rental housing viable for developers.”
This is not the first time that financing from CMHC’s Rental Construction Financing Initiative (RCFI) has allowed Wesgroup to build new rental housing that otherwise would have been market condominiums. Financing provided by CMHC for three previous Wesgroup projects has already resulted in 836 units of new rental housing being created.
“As multiple levels of government work to increase the supply of housing, Canadians can take pride in having an institution like CMHC that provides stability and supply to the housing market,” continues Jarvis. “We at Wesgroup look forward to working with CMHC on even more projects in the future that will provide more homes for Canadians.”
In addition to making the rental project financially viable, this financing from CMHC will also allow for 47 of the 178 units to be rented out at reduced rates in line with CMHC guidelines.
“This project is a great example of how government can collaborate with the private sector to increase the supply of rental housing in our cities,” continues Jarvis. “I would like to thank the talented and professional team at CMHC for their support and collaboration on this project. We look forward to working with them on more rental projects in the future.”
The building will be located at 3435 West Sawmill Crescent in River District, a master-planned community being developed by Wesgroup in south Vancouver. It is expected to be completed in late 2024.
Wesgroup is one of Western Canada’s largest private real estate organizations. From homes and master-planned communities to commercial spaces and town centres, we develop, build, own and manage premier commercial and residential properties that set new standards in quality, user experience and environmental responsibility. We are a vertically integrated company that encompasses construction, land acquisition, finance, design, leasing, marketing, sales and property management. Our mission is to connect people with genuine opportunities that enrich their daily lives. Since our founding in 1956, we have created over 100 communities all across the Lower Mainland. www.wesgroup.ca
SOURCE Wesgroup Properties
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