Skip to content

Kelowna multi-family rentals hit record $500,000 per door

Under-construction rental complex and new strata rental development set new price highs for residential transactions in the Okanagan city
entry-660-screen_shot_20220223_at_10.29.24_am copy
New 238-unit-rental project sold for $83.5 million to Centurion REIT before construction even completed | Cushman & Wakefield

A new multi-family rental project in Kelowna that is not even built yet has sold for the equivalent of $363,500 per door to Toronto-based Centurion Apartment Real Estate Investment Trust.

The same real estate team also brokered the recent sale of a new strata-titled apartment and townhouse rental complex in Kelowna at $500,000 per suite, a new record price for rental units in the largest city of B.C.’s Okanagan.

The 238-unit rental complex, Knox Mountain in downtown Kelowna, is now under construction with the first phase expected to complete in 2023. The purchase price of $86.5 million represents the largest single apartment building transaction ever in the interior of B.C., according to Peter Gibson of Cushman & Wakefield, who co-brokered the deal with Steve Laursen of Royal LePage Kelowna.

The strata development, Proxima Urban Homes, is a collection of 59 apartments and townhomes in Kelowna’s downtown, which completed in 2021. Located two blocks from Okanagan Lake, it sold for $29.5 million to Canadian Apartment Properties Real Estate Investment Trust LP, of Toronto.

Both properties are residential rentals and attracted multiple offers, according to the listing agents.

“Proxima was built out to be condo spec originally. It’s a stratified building and is located right in downtown Kelowna in Kelowna’s newest residential and retail district,” said Laursen.

Both developments were built and sold by Kerkhoff Develop-Build, with a head office in Chilliwack, B.C., and another office in Kelowna.

Kerkhoff is a family company in business since the early 1970s, which built one of Kelowna’s first downtown high-rises. Currently it is building the One Water development in Kelowna with two towers of 36 and 29 storeys, comprising 426 strata units.