SATURDAY, MARCH 31, 2012 I S5 Real Estate · THE GLOBE AND MAIL • SATURDAY, MARCH 31, 2012I GLOBE...

T H E G LO B E A N D M A I L • S AT U R DAY , M A RC H 3 1 , 2 0 1 2 I S5GLOBE REAL ESTATE •

The Burnaby skyline is aboutto be transformed. The city is

looking at plans to raise sky-scrapers in Metrotown possiblyas high as 59 storeys, with plansfor more major towers to sproutover the next few years.

Since the city nearly doubledallowable building density in2010, Metrotown has becomeone of the fastest growing areasin the Lower Mainland, with aprojected growth of 30,000 moreresidents and 20,000 more work-ers over the next 30 years,according to Edward Kozak, Bur-naby’s assistant director of cur-rent planning. Projects underway include Intracorp’s 46-storeyMetroplace and 38-storey Silvertowers, and the accompanyingmajor revitalization of BeresfordStreet, as well as Polygon’s 37-storey Chancellor.

There are nine more towers farinto the approvals process, andthree or four of those are expect-ed to break ground in the nextfew months.

Metrotown may be experienc-ing a boom, but it’s all part of adensity plan that goes back to1977 and has been revised alongthe way, Mr. Kozak says. Zoningwas amended in 2010 to allowmore density in exchange formore amenities and cash contri-butions, dependent on a highcalibre of architectural and pub-lic space design. Several of thetowers soon to be completed fallunder that specialized rezoning.

“I often get the concern raised,like, ‘Wow, this is unprecedentedgrowth,’ says Mr. Kozak, “Peopleare shocked when I tell them …it’s not unanticipated. It’s verydeliberate. There have beenpeaks and valleys. Right now,this is a peak.”

Like Richmond, Metrotown is amajor draw for the MainlandChinese demographic that appre-ciates proximity to major amen-ities, shopping and transit. TheMetrotown SkyTrain station isthe second busiest in the region.Much of Metrotown already cate-rs to a Chinese customer base,such as the Crystal Mall.

With a revised area plan underway to handle the increased den-sity, Metrotown is shaping up tobe a more vertical and dense,urbane neighbourhood. It isgoing beyond its claim for havingCanada’s second biggest shop-ping mall and becoming anurban core, complete with res-taurant, hotel and shopping des-tinations intended to drawresidents.

But if they should want to goto downtown Vancouver, it’s 20minutes away on the SkyTrain,making Metrotown a commuterhotspot for residential develop-ment. To take advantage of theextra density permitted, how-ever, developers have to offersomething special in return, oth-er than amenities such as a sen-iors’ centre or daycare.

“They are going to have to pro-vide something much moreunique, in terms of architecture,”says Mr. Kozak. “Most important-ly, the developer will have tocontribute to the community inmore ways than just redevelop-ing a site.

“We are trying to create acompact urban core that is wal-kable, and linked to the rest ofthe region through transit,” addsMr. Kozak.

To that end, a percentage of

the new units will even receivetwo-zone transit passes for twoyears.

For developers, Metrotown isalready a dream situation. Theysay the cost of doing business isgenerally lower than pricey Van-couver. And the city processthere is more streamlined thanVancouver’s project-by-projectnegotiation.

“You don’t have to negotiatewith [Burnaby], it’s embedded intheir development plans, it’s aformula,” says Intracorp presi-dent, Don Forsgren. “You knowwhere you will end up in costs.”

Intracorp has already built fivetowers in Metrotown. They cur-rently have three more in theworks, including Metroplace, ofwhich 85 per cent sold in threeweeks, under construction, aswell as Silver, about to come tomarket this month, and anothertower in the final approval pro-cess.

While a condo might run $750

per square foot in Vancouver, acomparable unit in Burnaby is inthe neighbourhood of $500 to$600 per square foot.

“There aren’t a lot of choices inVancouver for housing at thatkind of price point,” says Mr.Forsgren.

Bosa president, Daryl Simpson,whose 43-storey Sovereign pro-ject sold out last year in one day,echoes the sentiment that it’seasier to do business in Burnaby.Sovereign, which includes retailand a hotel, has a total marketvalue of $190 million.

“Certainly we have good rela-tionships with all municipalities,but Burnaby is a great place todo business. Is it easier than Van-couver? Yes it is, actually. Van-couver is more complicated, noquestion. Certainly the Burnabydensity formula makes it moreattractive to developers. But theCity of Burnaby makes it easier.”

Urban Analytics’ Michael Fer-reira, analyst for the industry,concurs that part of the reasonBurnaby’s Metrotown is boomingis because the process is general-ly faster than elsewhere.

“It’s one of the fastest growingand one of the most activeneighbourhoods,” says Mr. Ferrei-ra. “Vancouver is slower [for de-velopment] and it’s a function ofthe cost of doing business inVancouver. It’s a lot more expen-sive to get into the market therefor developers, so you are limit-

ing the number of players tothose that already have deepenough pockets to wait out theprocess.”

Mr. Simpson adds that anotherdraw is that for the Chinese mar-ket, Burnaby’s Metrotown isshaping up to be a flashy micro-cosm of a major Chinese city.

“If you think about Shanghai,Beijing, or other major Chinesecities, Chinese people generallylike things that are big and bold,and new and striking, and in-creased densities that the City ofBurnaby has adopted in the lastyear have really capitalized onthat form of development.”

Some developers say the boomis also due to recent Asian tsuna-mis, and the small earthquakeon the West Coast last fall. Rich-mond, a long-time popular desti-nation for the Chinese market,has a high water table. As aresult, some believe Burnabyprojects got a boost in popularityfrom that segment of the market.

“I think Burnaby may surpassRichmond in terms of theachievable sales values for condoproduct … it’s the higher groundmentality,” says Mr. Ferreira.“People didn’t stop buying inRichmond, but it gave peoplepause for thought.”

And then there’s the not-so-lit-tle issue of allowing density, al-though Mr. Kozak says that isn’tthe city’s chief aim.

“What they are after is a

vibrant community, and avibrant community happens tohave a lot of density in it,” saysMr. Kozak.

High-profile condo marketerBob Rennie is also getting in onthe act.

He is launching presales thisfall for the Wall Centre CentralPark near Joyce SkyTrain station,not far from Metrotown. Theproject will be comprised ofthree towers and 1,100 units.

But the largest scale projectgoes to Anthem Properties,which has embarked on a jointventure with the Beadie Group,called Station Square. They arethe ones with plans for that 59-storey tower, already located onone of the highest points in theLower Mainland. It will rival Van-couver’s Shangri-La in terms ofheight, though the details arestill to be determined. The 12-acre, five-tower project, which in-cludes 1.5 million sq. ft. of resi-dential, 300,000 sq. ft. of retail,and 150,000 sq. ft. of office space,goes to market in a few months.It is awaiting final approval. Bythe time it’s complete, it willhave been an eight-year project,says Anthem’s head of sales,Greg Zayadi, whose company hasowned the property for a decade.

“Ours is more comprehensivethan the rest. We are going to beat this for a long time.”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Special to The Globe and Mail

DEVELOPMENT

Burnaby’s Metrotown inches skywardDeliberate plan for a more vertical and dense, urbane neighbourhood transforms fast-growing area in the Lower Mainland

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KERRY GOLD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Metrotown may be experiencing a boom, but it’s all part of a density plan that goes back to 1977 and has been revised along the way.

I think Burnaby may surpass

Richmond in terms of the

achievable sales values for

condo product …

Michael FerreiraAnalyst, Urban Analytics

ASKING PRICE$1,699,000. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SELLING PRICE$1,655,000. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

TAXES$4,529 (2011). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

DAYS ON THE MARKET28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

LISTING AGENTStu Bell, Prudential Sussex Realty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Action: This mostly one lev-el 1,900 sq. ft. house with anextra studio building, courtyard,and extensive decks and gardenis nestled among the trees ofWest Vancouver, surrounded byocean views and Whytecliff Park.

The home was designed by twosignificant West Coast architects,Fred Hollingsworth and BarryDowns, in 1964. The duo hadjoined forces for a short time todesign homes.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What They Got: The house hasbeen restored by the seller with a$400,000 renovation that workedwith its natural environment andample floor-to-ceiling windowsand skylights and created a Japa-nese style interior decor.9 There is teak and oak wood

throughout the house, withpost and beam ceilings, built-incabinets and shelves, and hard-wood floors.

9 The kitchen and bathrooms areoutfitted with limestone coun-ter tops and heated tile floors.

9 The studio, across from thecourtyard, is large, bright andperfect for entertaining orworking.

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The Agent’s Take: “It’s quite aunique home because (Hollings-worth and Downs) only workedtogether for a four-year period.And this is one of their finestpieces. It really is a masterpieceof mid-century contemporaryarchitecture.”

DONE DEAL 9 BY KERRY GOLD

WEST VANCOUVER 6994 HYCROFT RD.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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REAL ESTATE EDITOR: D’ARCY McGOVERN

Real Estate

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