Vancouver Micro Lofts

[sdolson]

Is Vancouver following the footsteps of other major centres such as New York and London England with the announcement of a new development that will convert a building situated in the downtown eastside into classy, affordable micrlofts? These lofts are only 270 square feet but their marketing them with custom fixtures and finishes (fold down beds and drop down tables) in an attempt to maximize floor space. If you want to hear more about this project you can check it out at the following link:

http://www.vancouversun.com/Drawings+give+...y.html?tab=PHOT

You also might want to check out Reliance Holdings: http://www.relianceholdings.com/index.html

I think it could be a great thing for the city. This project is situated in a troubled area which is on the cusp of transition. It very well could be the beginning of something big but it all depends whether or not their is a demand for housing like this. These units are going to be rental units by reliance holdings so we will not see them come to the resale market anytime soon but I was wondering if you think future developers will follow in their footsteps with this microloft concept?

Could Positive cashflow be coming back to Vancouver in these small bundles?

Let me know what your thoughts are on this new concept.

Cheers,

Scott Dolson

 

[housingrental]

I wonder what the tenant profile might be like?

 

[sdolson]

QUOTE (housingrental @ Feb 2 2010, 12:47 PM) I wonder what the tenant profile might be like?

I`m not sure but based on the design and the price point of these micro lofts I would expect them to attrack single young professionals. As rent its still going to be in the $750 range so any individual occupying these places must clearly have a stable income.

My guess is that they are looking for tenants who would like to have their own place but are unable to afford living in a conventional vancouver condo where rents can easily eclipse $1200 a month for a studio or one bedroom condo.


Do you think the lowere rental rate will be enough in itself to attrack people to downsize to 270 sqft?

 

[Thomas Beyer]

QUOTE (sdolson @ Feb 3 2010, 03:22 PM)
...



Do you think the lowere rental rate will be enough in itself to attrack people to downsize to 270 sqft?


yes .. but you will get a lot of turnover, damage, couples and weirdo's due to location .. I think this is NOT a great investment. Stick with a decent location in Vancouver, some sub $400,000 1BR concrete condos are available downtown.. buy those instead !!

 

[NiagaraInvestor]

QUOTE (housingrental @ Feb 2 2010, 01:47 PM) I wonder what the tenant profile might be like?

Japanese.  A 30 sq M place in Tokyo ain`t too bad!

 

[NiagaraInvestor]

QUOTE (NiagaraInvestor @ Feb 4 2010, 07:04 PM) Japanese.  A 30 sq M place in Tokyo ain`t too bad!

 




Actually these would be smaller than some here:  http://www.tokyoapartments.jp/apartsummary.php

 

[TheVancouverMarket]

I used to sit on the Gastown Area Heritage Planning Commission with Jon Stovell of Reliance Holdings . He is totally passionate about the area (Gastown) and what he does. That love and focus for the area and his work translates into these great little projects.

I own rental property in Gastown that I bought 5 years ago. The last time I personally surveyed rents for my own use in the area in last quarter 2009, rents in the area for typical studio sizes varied between $2.15 sq/ft and about $2.25 sq/ft. Rents have risen in the area significantly. I have increased my rent on tennant turnover in the last 5 years by at least 20%.

Even though the area immediately surrounding the building is a bit rough round the edges, I think personally they will have a log waiting list of tennants on this project. The infrastruture, the retail, the amenities and transport infrastructure have improved massively in just the last 12 months. The recently opened rapid transit line (RAV Line) in Gastown, along with the Woodward`s project and amenities, have kept a consistent forward momentum on rents and prices in the last 5 years.

It was not always like this. Just 5 years ago many Vancouverites would not have bothered going to Gastown at all. People used to refer to it as `Cracktown`, because of the overt drug dealing in the area. But it has really improved as a mix of incomes and amenities move into the area.

As a real estate investor, this is my favorite spot.