Starlight Selling 40-Storey Aqua Tower In New West Just 4 Years After Acquisition

Toronto-based real estate investment and asset management company Starlight Investments has made the decision to sell one of its prime properties in Metro Vancouver, according to a sales brochure obtained by STOREYS.

The property is the Aqua at Plaza 88 tower located at 900 Carnarvon Street in New Westminster, directly adjacent to the Expo Line SkyTrain's New Westminster Station and part of the Plaza 88 mixed-use development built around the station.

At 40 storeys, Aqua at Plaza 88 has the distinction of being Western Canada's tallest rental tower, according to the building website, which notes that the building is managed by Tribe Management (formerly Gateway Property Management).

On October 29, 2020, Starlight Investments announced that it had acquired the then-newly-constructed tower, noting its quality and central location.

"The acquisition of this signature property builds on Starlight's presence in the Lower Mainland of British Columbia and demonstrates our strategy of acquiring top-quality, well-positioned and highly sought-after, high-rise, concrete buildings in desirable urban communities across Canada," said Starlight Founder & CEO Daniel Drimmer.

In its announcement, Starlight did not disclose the vendor. Plaza 88 was constructed by Degelder Group, who sold the Plaza 88 development to First Capital REIT for $100 million in 2012. However, Aqua was only in the planning stage at that time and it's unclear if the parcel was sold to Starlight by First Capital then or by Degelder Group previously.

The registered owner of 900 Carnarvon Street is currently Blackstar 900 Carnarvon Apartments Ltd., which is controlled by Starlight Blackstar Pool III GP Ltd., Starlight Pool III GP Ltd., and BPP Pool III GP ULC, according to Land Owner Transparency Registry. The names of the entities and registered head office of BPP Pool III GP ULC suggest that New York-based Blackstone Property Partners — whom Starlight has partnered with on acquisitions before — also has an ownership stake in the property.

Starlight also did not disclose the purchase price and the price remains unavailable due to the transaction being a share purchase — a purchase of the company that owns the property — according to transaction details listed in a 2021 report by Goodman Commercial. BC Assessment currently values 900 Carnarvon Street at $118,700,000

The Property

Aqua at Plaza 88 was recently listed by CBRE's National Apartment Group without an asking price, according to a sales brochure sent out to prospective buyers last week that was forwarded to STOREYS. The listing is not currently public on CBRE's website.

• Address: 900 Carnarvon Street, New Westminster
• Year Built: 2019
• Lot Size: 0.95 acre
• Height: 40 storeys
• Units: 398
• Price: Unpriced
• Listed By: CBRE (Lance Coulson, Sim Waraich, David Montressor, Tom Schuster)

The property consists of a 40-storey tower with 398 units — 172 studio units, 72 one-bedroom units, 132 two-bedroom units, and 22 three-bedroom units. Studio units are currently starting from $2,192, one-bedrooms are starting from $2,575, two-bedrooms are starting from $3,204, and three-bedrooms are starting from $4,093, according to the building website.

The property also includes around 4,600 sq. ft of retail space and 260 vehicle parking spaces that are provided in a six-level above ground parkade.

Aqua at Plaza 88's building and rental suite amenities.(CBRE)

According to CBRE, the existing CMHC-insured financing is available to be assumed by the new owner. That financing consists of a loan in the original amount of $100,765,030 from TD Bank that has an outstanding balance of $93,144,430 as of October 1, 2024. The loan has an interest rate of 1.37%, a maturity date of November 5, 2027, an original term of seven years, and an amortization period of 40 years.

"The Property's new construction status ensures recurring cashflow and minimal ongoing capital exposure, while high-end amenities, full transit-integration, and a growing urban location provide a strong business case for accelerated NOI growth over time," says CBRE. "Each of 900 Carnarvon's unique features are not easily replicated and represent a distinct competitive advantage that position the building at the top of the surrounding rental market. Overall, Aqua at Plaza 88 represents a desirable multifamily investment with a compelling balance of scale, accretive yield, recurring income growth, and long-term downside protection within any institutional-caliber rental housing portfolio."

With that many appealing qualities, it's unclear why Starlight Investments has decided to sell the property. Upon inquiry, Starlight declined to elaborate on why it has listed the property.

In June, Starlight acquired The Lauren, a 22-storey rental building in the West End of Vancouver developed by Westbank and Peterson. In their announcement of the acquisition, Starlight said that they were pleased to continue expanding their portfolio in British Columbia.