The City of Richmond has made a significant investment in the housing sector, purchasing a major rental property and adjacent retail space for $70.25 million from developers Townline Homes and Peterson Group. This quiet transaction, finalized in August, signals a growing trend of municipalities stepping in as landlords amid a tight rental market.
Key Takeaways
- Richmond acquires a 163-unit luxury rental building and neighboring retail space for over $70 million
- The move aligns with a broader trend of governments purchasing and developing residential properties
- Quiet acquisition reflects a strategic push to address local housing challenges
Details of the Transaction
The properties acquired are located at 10820 and 10880 No. 5 Road in Richmond, immediately south of Gardens Agricultural Park. The main building, Camellia at The Gardens, is a 163-unit rental complex completed in 2015, offering upscale living with a portion dedicated to low-end market rentals. The purchase also included nearly 20,000 square feet of ground-level retail space next to the residential building.
According to recent property assessments, the combined value of both parcels was about $65.6 million prior to the sale, but the City ultimately paid $70.25 million in August. The seller, a partnership between Townline Homes and Peterson Group, developed the site over a decade ago as part of a master-planned community.
Governments Step Up as Landlords
Richmond’s acquisition is part of a broader trend in British Columbia, where local governments and provincial bodies are increasingly buying and developing residential properties to tackle affordability and supply challenges. Similar transactions in the past year include Vancouver’s purchase of a 46-unit rental building and BC Housing’s acquisitions in Mission and Vancouver.
Local governments are not only purchasing completed properties but also launching new developments. Richmond is advancing a major affordable housing project with the New Vista Society, aiming to add over 200 affordable units in the city, though the future of provincial support for such initiatives remains uncertain following changes in funding programs.
Market Implications and Broader Context
This move comes as B.C.'s multi-family housing market remains steady despite recent policy shifts and immigration trends. Commercial reports indicate a stable outlook, though total dollar volume in the sector has dipped slightly compared to previous years. As municipalities like Richmond, Vancouver, Surrey, and Burnaby ramp up involvement, the traditional landscape of property ownership in the region is rapidly evolving.
By stepping directly into the rental market, the City of Richmond is positioning itself to have more direct influence on housing affordability and availability, a critical issue in a region marked by soaring rents and limited supply.
