Over the past two or so years, as the real estate market has taken a downturn, there has been a noticeable decrease in portfolio sales involving multiple properties. That said, a significant one was quietly completed earlier this year, STOREYS has learned.
The transaction was between Vancouver-based transit-oriented developer PCI Developments and Toronto-based private real estate investment firm Realstar Group, and pertains to the following three rental buildings, all of which are located in East Vancouver.
Yarrow and Aster
Two of the buildings were developed as one project and are located on the same block, although they are separated by a few properties in between them. Yarrow and Aster are located at 444 Kootenay Street and 435 Boundary Road, respectively, along East Hastings Street, steps away from the Kootenay Bus Loop.
Both Yarrow and Aster are 14-storey buildings and were developed as part of the City of Vancouver's Moderate Income Rental Housing Pilot Program (MIRHPP). Yarrow is home to 94 market rental units, 19 moderate-income rental units, and 3,290 sq. ft of retail space, while Aster is home to 118 market rental units, 24 moderate-income rental units, and 4,797 sq. ft of retail space.
BC Assessment values Yarrow at $49,016,000 and Aster at $62,439,000 in assessments dated back to July 1, 2024. Both buildings were completed in 2023.
388 Kaslo
388 Kaslo, located at 388 Kaslo Street in Vancouver. / PCI Developments
The third building is 388 Kaslo, located at 388 Kaslo Street — also along East Hastings Street. The building is located a short drive west of Yarrow and Aster (and is not to be confused with 388 Slocan, which was sold last year).
388 Kaslo is a six-storey building with 94 market rental units and 4,265 sq. ft of retail space, according to PCI Developments' website. Retail tenants include a Dairy Queen, a Tim Hortons, Woodland Physiotherapy, and an F45 Training.
BC Assessment values 388 Kaslo, completed in 2018, at $54,825,000 in an assessment dated back to July 1, 2024.
The Transaction
The properties have a total valuation of $166,280,000, but the true sale price is unknown because the transaction was completed via a share sale — a transaction involving the shares of the companies that hold the properties, rather than the properties directly. Such transactions also have the benefit of bypassing the provincial property transfer tax.
No other transaction details are known, besides that the transaction occurred on May 16.
All three buildings are now listed on Realstar's website.
This year, PCI Developments, along with its partners, also sold the Cottonwood Centre shopping mall in Chilliwack for $115 million, as first reported by STOREYS. PCI additionally continues to be one of the most active developers in terms of new projects. Recently, the company unveiled their plans for Marine Gateway 2 and has also submitted a rezoning application for 3553-3563 E Hastings Street, where they have proposed an 18-storey mixed-use building. The latter is located just steps away from Yarrow and Aster.
