City of Vancouver buys new rental housing building for $38.5 million

M41N at 188 East Woodstock Avenue (5679 Main Street), Vancouver. (Google Maps)

A new six-storey mixed-use building at the northwest corner of the intersection of Main Street and East 41st Avenue is now owned by the City of Vancouver.

The 2023-completed building at 188 East Woodstock Avenue, previously addressed as 5679 Main Street, contains 46 secured purpose-built market rental housing units and 7,600 sq ft of ground-level retail and restaurant space.

In the past, when governments acquired such properties, the general expectation was that it would be converted into deeply affordable rental housing, such as social housing and supportive housing.

However, that is not the case for this building, which was previously named and marketed as M41N by its private developer and previous owner.

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Upon inquiry, the City of Vancouver told Daily Hive Urbanized this building will see its market rental housing uses fully retained as a revenue-generation opportunity for the municipal government.

This is a brand new strategy being tested under a pilot project to create new additional revenue for the municipal government that does not arise from taxes or service-based user fees. Moreover, it serves the dual purpose of providing suitable housing for middle-income working households and an ongoing municipal revenue source.

“Revenues generated from this pilot project can be used to further Council priorities, including renewal of infrastructure and amenities, develop affordable housing and/or offset property taxes,” the City told Daily Hive Urbanized.

“The purchase of 188 East Woodstock Avenue represents this new approach for the City, leveraging our resources to directly address the housing needs of our residents.”

M41N 188 East Woodstock Avenue 5679 Main Street Vancouver Liquor 49

Site of M41N at 188 East Woodstock Avenue (5679 Main Street), Vancouver. (Google Maps)

M41N at 188 East Woodstock Avenue (5679 Main Street), Vancouver. (Google Maps)

City staff were directed by City Council in Fall 2023 to create the City’s new Vancouver Housing Development Office (VHDO) department, which serves to centralize the City’s housing project implementation, with a focus on partnering and investing in the development of middle-income housing, including market rental housing.

VHDO’s mandate also aligns with the Mayor’s Budget Task Force final report in January 2024, which included the recommendation of using the City’s real estate portfolio to create perpetual value and generate non-tax revenue to address the infrastructure deficit.

The entity is also in the process of considering developing five “important” City-owned sites to serve the same purposes of generating housing and an ongoing revenue stream, which is a wider pilot project approved by City Council on June 25, 2024.

As for the acquisition of 188 East Woodstock Avenue, it was acquired by VHDO in November 2023 for $38.5 million through the City’s Property Endowment Fund (PEF), which is worth $5.7 billion as of 2018 — a figure that has likely grown significantly since then. As the property is not used for City services, it is being held under the PEF.

M41N at 188 East Woodstock Avenue (5679 Main Street), Vancouver. (Google Maps)

Local developer Rendition Developments’ rezoning application for the project at 188 East Woodstock Avenue was approved by the last Vision Vancouver-led City Council in January 2018 under the Rental 100 Secured Market Rental Housing Policy that existed at the time. The ground level is occupied by the Liquor 56 liquor store, which is a tenant secured by the developer before the City’s acquisition.

Liquor 56 occupies a 4,500 sq ft commercial unit fronting Main Street. City staff initially rejected the development permit application for the liquor store in April 2021, but this decision was later overturned by the City’s Board of Variance in October 2021.

The total building floor area is about 41,000 sq ft, and the lot size is about 11,700 sq ft. The architect is Mallen Gowing Berzins Architecture. The location is well served by frequent bus routes along Main Street and 41st Avenue, including the R4 RapidBus.

At the moment, the building does not have any residential tenants. Moving forward, the building will be managed by a property management company.

Under the Rental 100 policy, which provided the developer with a development cost levy (DCL) waiver for the rental housing floor area portion of the project, all 46 secured purpose-built market rental housing units must be used for such purposes for at least 60 years or the lifespan of the building, whichever is longer.

It is further noted by the City that the municipal government has not acquired any other newly constructed rental apartment buildings since this particular acquisition. Any future acquisitions would continue to be carried under VHDO.

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