$164 million in provincial financing for 28-storey rental housing tower near SkyTrain's future South Granville Station
The first of many new high-rise rental housing tower projects within the Central Broadway district is going ahead with the help of the Government of British Columbia.
On Wednesday, BC Minister of Housing Ravi Kahlon announced $164 million in low-cost construction financing to Jameson Development towards the completion of its 28-storey secured purpose-built rental housing tower at 2538 Birch Street — the southeast corner of the intersection of West Broadway and Birch Street, just two blocks east of SkyTrain’s future South Granville Station on the Millennium Line Broadway Extension.
Construction is underway at the location, which was famously previously a longtime Denny’s restaurant.
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“We’re taking action to help boost housing supply for people in Vancouver, and this new development adds much-needed stock at both market and affordable levels. By creating rental housing in central locations close to major amenities, more people can stay in the community they know and love,” said Kahlon.
Tony Pappajohn, the president of Jameson Development, added: “Thanks to results-focused programs like these, our family is creating new, affordable rental homes for more families in Vancouver faster than if we were to do it on our own. We know how important these homes are and we look forward to welcoming our new neighbours when this project is complete.”
There will be a total of 258 rental homes, including 200 market rental units for middle-income households, and 58 below-market rental units.
The unit size mix is 30 studios, 121 one-bedroom units, 70 two-bedroom units, and 27 three-bedroom units, with nearly half of the units under the City of Vancouver’s Moderate Income Rental Housing Pilot Program (MIRHPP) sized for families — defined as two or three bedrooms.
Residents will have access to various indoor and outdoor amenities, including an outdoor playground and a dedicated dog-washing station, as this will be a pet-friendly building, which is rare for a brand-new rental housing building.
The first two levels of the building will be dedicated to 30,000 sq ft of retail, restaurant, and office space.
Four underground levels and a portion of the ground level will accommodate 125 vehicle parking stalls and 487 secured bike parking spaces. The architectural firm behind the design is IBI Group.
The developer is providing about $81.4 million towards the project. The funding it is receiving from the provincial government must be repaid, but the loan from the province is being offered at a lower borrowing rate than what banks and investors are likely able to offer, given the continued impacts of the Bank of Canada’s higher interest rates. Rental housing projects are facing delays due to escalating construction financing costs.
The province’s construction financing is coming from BC Housing’s HousingHUB program, which offers low-cost construction financing to both for-profit and non-profit developers to help improve the economic viability of rental housing and homeownership options for middle-income households.
The rezoning application for Jameson Development’s current 2538 Birch Street project was approved by the previous makeup of Vancouver City Council in July 2020, about two years before the approval of the area’s densification strategy of the Broadway Plan.
In January 2028, City Council also approved the developer’s initial concept for a smaller 17-storey tower with 153 market rental homes, before it came back with a revised rezoning application calling for more market and below-market rental homes.
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