The Cariboo Gardens Apartment at 550 Cedar Ave. recently sold for $3.29 million. (Melissa Smalley - 100 Mile Free Press photo)

The Cariboo Gardens Apartment at 550 Cedar Ave. recently sold for $3.29 million. (Melissa Smalley - 100 Mile Free Press photo)

100 Mile apartment building sells for $3.29 million

Sale was $1 million over assessment

A 45-suite apartment building in 100 Mile House sold last month for more than $1 million over assessed value.

The building, at 550 Cedar Ave., had a 2021 BC Assessment value of $2.01 million and was sold for $3.29 million on Sept. 30.

“It did sell for way over the assessment,” broker Michael Marckwort of NAI Commercial said, noting the asking price was $3.4 million. “There’s not a lot of product out there in terms of apartment buildings, especially in smaller communities. It’s also a good, stable investment when people buy these buildings, for the long term.”

Pricing for this type of building is based, in part, on its “cap rate” – essentially, a rate of return. The Cedar Avenue property had a cap rate of 6.43 per cent with a net operating income of $218,723 annually.

Marckwort said the new owners are a Lower Mainland-based company that owns a few other buildings up north.

He said they plan to keep the same tenants and property manager in place with no major changes, aside from a few possible upgrades.

“There’s a lot of storage in the building that could possibly be turned into an extra suite,” Marckwort said. “There’s not going to be a lot of change but I think they’ll breathe some new life into it.”

The former owners, Marckwort said, are a Salmon Arm couple who are shifting to retirement.

“It was just a good time for them to sell.”



melissa.smalley@100milefreepress.net

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