Drayton Valley, Alberta?

[AndyLuchies]

Hey there fellow REIN members,
I`d love a few opinions from Albertans, especially REIN members, about Drayton Valley west of Edmonton. A deal has come up that cashflows well, but i`m wondering what you think about that community? I know it`s been rough in the past, but it looks like the town is trying to reinvent itself... would you invest there? Why or why not?

 

[MikeMcCrae]

I live close to Drayton Valley (Leduc 100 km`s away) and have often thought of buying there. It`s economy is based on lumber (OSB board) and oil and gas exploration. I think over time it has a lot of upside but strong management and quality tenants is something to look at very carefully. If you live close by I would say yes. If you are far away have a back-up plan and a second back up plan for your management.

 

[AndyLuchies]

thanks for the heads up mike! its a rent to own, so minimal management on my part...but i will develop my back up!

 

[Lucas]

QUOTE (MikeMcCrae @ Sep 24 2009, 07:56 PM) I live close to Drayton Valley (Leduc 100 km`s away) and have often thought of buying there. It`s economy is based on lumber (OSB board) and oil and gas exploration. I think over time it has a lot of upside but strong management and quality tenants is something to look at very carefully. If you live close by I would say yes. If you are far away have a back-up plan and a second back up plan for your management.


Hi Andy,

I live near and have sold properties in Drayton Valley. Mike`s analysis of Drayton is very good...it is primarily an oil and gas town with Weyerhauser being a major employer in the area. However, I do know that Weyerhauser has closed a large part of their Drayton OSB operation due the decreased US demand and the age of their current plant...I know of two clients offhand that lost their positions at Weyerhauser because of the lay-offs...That said, their still are many employees at the faciltiy.

Management in the area is 7% plus lease-up (I`m pretty sure...but verify) and the company to contact in Realty Executives (Theresa Macdonald). I believe they are pretty much the only company in town doing it.

In terms of quality tenants, Drayton is a center of approx $7000 and due to alot of oil and gas activity in the area their is alot of wealth and consequently a decent tenant profile...Obviously, their are a few scalliwags but I wouldnlt think any more than normal.

Good Luck,

Lucas