Our local real estate expert Marko Juras says we paid way too much

https://www.youtube.com/watch?v=BuKgpZy3O1s

There is a lot of competition for completed higher-end rental property. Pension funds and REITs are actively buying as rates slump to their lowest mark since 2023, and while rents are trending down, these guys are looking at the long term and not as moved by short term deviations.

I’m sure the feds would have wanted to buy at the listing price but if there’s competing bidders you either walk, or adjust.

Back in the spring of 2021 Skyeview had 1BRs starting at $475k, or $550k today with inflation. 2BRs were priced from $520k, or $600k today.

Again, UVic is building dorms, primarily studios, for $742k per unit averaged at 150 studios and 90 four-bed clusters.

I was not aware the original developer was involved here.

They would have paid more if there was a bidding war. I’m sure multiple agencies tried to acquire the property. It’s a nice project and considering UVic is building dorms at $742k per unit, this building at $635k per unit is priced well under, and with larger units.

Are the Uvic residence builds really a fair comparison? Skyeview is a generic wood frame low-rise with builder grade materials and no amenities. It's standard fare, built to meet code vs. overbuilt concrete institutional.

What UVIC is building aren't first year dorm rooms , they're self contained apartments for grad students. The 90 clusters units are big units: 4 bedrooms, 2 bathrooms , full kitchen with 2 fridges, dining room and living room. Studios don't slouch on space either, supposed to be around 425sqft each, plus some larger ones with wheelchair accessibility.

Cost intensive differentiators :

-extensive common/communal spaces.
-furnishings appear to be inclusive.
-LEED certification

-Higher fire suppression requirements
-Electric Air Source Heat Pump water heaters
- HRV
-Triple pane windows

-8 inches of cavityrock in exterior walls.

-Rick Hansen Gold cerification, exceeding code for accessibility requirements, a substantial portion of units have to be wheelchair ready , with ceiling mount track systems, curbless shower, bathroom floor drain etc.