Purpose-built rental in Chilliwack repriced after nearly $5-million cut

The Station at Thomas Road, a purpose-built rental complex in Chilliwack, has undergone an almost $5-million price reduction. 

The property is now listed for $63.7 million—down $4.7 million from its previous asking price of $68.4 million. The asset remains fully leased and carries long-term CMHC financing at 1.89 percent, but the repricing signals that buyers are no longer willing to pay peak-cycle valuations. 

The property 

• Address: 46170 & 46180 Thomas Road, Chilliwack, BC  
• Asking price: $63,700,000  
• Units: 160  
• Price per unit (based on asking price): $398,125  
• Cap rate: 4.7%  
• Built: 2020  
• Net rentable area: 133,368 sq.ft  
• Lot size: 3.04 acres  
• Suite mix: Studio, one- and two-bedroom market rental units  
• Parking: 227 total (80 secured underground & 147 surface)  

The Station comprises two five-storey apartment buildings on a 3.04-acre site in Chilliwack’s growing Vedder Crossing neighbourhood. The leasehold interest totals 133,368 square feet across 160 studio, one- and two-bedroom market rental units. 

Completed in 2020, the buildings feature air-conditioned suites with in-unit laundry, dishwashers and modern appliances, along with shared amenities including a fitness room, residents’ lounge, landscaped outdoor areas and 227 parking stalls. The property is fully leased and has maintained a tenant waitlist. 

The offering is priced at a 4.7-percent cap rate, or roughly $478 per square foot, and includes approximately $38 million in below-market CMHC debt at 1.89 percent, maturing in 2031. 

The big picture 

“This really reflects what’s happening with investor appetite,” says Mark Goodman, principal of Goodman Commercial Inc. “What we’re seeing is a pretty clear recalibration—a ‘market reset,’ if you will.” Buyers, he adds, are “pulling back and demanding better yields.” 

After years of tight conditions, Metro Vancouver has seen a noticeable increase in rental supply, pushing vacancy rates higher and softening rent growth. As a result, investors are underwriting more conservatively and seeking higher cap rates to offset a changing risk profile. 

Even so, Goodman notes that assets with modern construction, strong locations and stable occupancy continue to attract interest. “This adjustment just brings the pricing in line with today’s reality,” he says. “For the right buyer, it could be a solid long-term play.”