C O R N E R R E T A I L B U I L D I N G F O R S A L E :

1641 Commerce Avenue, Kelowna, BC On Commerce Avenue, just off Highway 97N

EXCELLENT VALUE FEATURING:

Rare opportunity to acquire a fully leased service commercial property

Building is approx. 17,247 sq.ft. on the main floor (17,847 sq.ft. leasable)

1.352 acres lot (58,893 sq.ft.)

Zoning allows mezzanine expansion for future increase in income

10 rental premises with 6 tenants allow for diversified income

Zoned C10 (Service Commercial) which allows a variety of uses

Estimated Net Operating Income as of July 2017: $281,000 ($15.75/sq.ft.) /yr

The subject property is offered at $5,500,000 (5.2% CAP)

FOR MORE INFORMATION PLEASE CONTACT:

EXECUTIVE SUMMARY:

TYPE OF PROPERTY Multi-tenant commercial building

CIVIC ADDRESS 1641 Commerce Avenue, Kelowna, BC

LEGAL DESCRIPTION Lot 7, District Lot 125, ODYD Plan, KAP73825

PARCEL SIZE 1.352 acres; 58,893 square feet

GROSS MAIN FLOOR 17,759 square feet

LEASABLE MAIN FLOOR 17,247 square feet

LEASABLE MEZZANINE 600 square feet

TOTAL LEASABLE 17,847 square feet

SITE COVERAGE 30.2%

FLOOR AREA RATIO 0.303

ZONING C10, Service Commercial

OFFICIAL COMMUNITY PLAN Service Commercial

HIGHEST AND BEST USE As Improved - current use

I n c r e d i b l e P a r k i n g a n d C o n v e n i e n t S i t e A c c e s s !

PROPERTY LOCATION:

The subject property is located on the northwest corner of Commerce Avenue and Jenkins

Street, between Enterprise Way to the west and Highway 97 North to the east, within Mill Creek

Commerce Park. Mill Creek Commerce Park, located to the north of the Central Park Power

Centre, was developed in 2003 to 8 service commercial, 3 business industrial and a hotel zoned

parcel. The subdivision is fully developed and includes both owner-occupied and multi-tenant

commercial buildings. The subject neighborhood has evolved dramatically from its historical

fringe industrial and residential uses to intensive commercial development. The former Central

Park Golf Course bounded by Highway 97, Banks Road, Mill Creek and the former CNR right of

way, experienced accelerated commercial redevelopment during the last decade which

included the Central Park Power Centre, Home Depot, Wal-Mart and other retailers. The

Enterprise Way auto mall located on the west side of Enterprise Way opposite the Central Park

Power Centre was also developed last decade.

More recent developments included the addition of the Marriott Hotel at the southwest corner

of Highway 97 North and Powick Road, commercial buildings on the east side of Enterprise Way,

bounded by Powick Road and Highway 33, and a new retail strip plaza at the corner of Highway

97 and Commerce Avenue. In early 2012, the Vineyard Inn and Four Seasons Motor Inn located

at the corner of Highway 97 North and Highway 33 was acquired and was subsequently been

demolished for future redevelopment. With the significant access improvements and provision

of full municipal services to the area, many of the under-improved and under-developed

parcels in the neighborhood were redeveloped to a higher and better use. In view of the city's

relatively limited supply of commercial development sites in the urban core, it is expected that

the neighborhood will continue to improve in the foreseeable future, with a corresponding

appreciation in values.

OVERVIEW:

Commerce Centre is a concrete tilt-up multi-tenant building comprising a gross building area,

inclusive of the electrical room and covered alcove, of 17,759 square feet. The building is

designed to accommodate 10 rental units and comprises a total main floor leasable floor area

of 17,247 square feet but no partitioning wall was ever constructed between Unit 101 and 102,

Unit 107 and 108 and 109 and 110 due to leasing requirements. Unit 101 and 102 contains an

open mezzanine constructed by the tenant but is not included in the leasable floor area. Unit

104 includes a 600-square foot mezzanine constructed by the landlord and has been added to

the building’s leasable floor area.

UNIT # TENANT MAIN FLOOR LEASE AREA (SQ. FT.)

UNIT # TENANT MAIN FLOOR LEASE AREA

101 West Coast Beauty 1,875

102 West Coast Beauty 1,894

103 Lisjen 2,137

104 Abb Inc. 1,657

105 Abb Inc. 1,512

106 The Pottery Place 1,681

107 Flo Form Industries 2,019

108 Flo Form Industries 1,594

109 Coldwell Banker 1,568

110 Coldwell Banker 1,310

Total Main 17,247

104 –Mezz. Abb Inc. 600

Total 17,847

CONSTRUCTION AND STRUCTURAL:

Floor Structure: - Poured concrete slab on grade supported by reinforced concrete footings

and foundations.

Exterior Walls: - Painted concrete tilt-up and steel framing. Decorative Ledge stone facade on

the front elevation.

Windows & Doors: - Each unit includes a good quality storefront entry and windows in black aluminum frames. Each unit contains a 10’w x 12’h overhead door and metal man door at the back except Unit 106. Unit 107 has no overhead door but includes a double man door at the back.

Roof: - Flat built-up torch on roof overlay on metal roof decking sup-ported by open web steel joists and steel beams.

Electrical: - Main panel to the building is 800 amps. Each unit is independently metered and

has 200 amp electrical service.

Natural Gas: - Each unit is independently metered for gas consumption.

Lighting: - Combination of halide, LED, fluorescent and incandescent lighting.

HVAC (Heating, Ventilation & Air Conditioning): - Each CRU features individual packaged

rooftop HVAC unit with ducting and diffusers. Ceiling suspended gas fired heating unit in warehouse section.

Interior Leaseholds: - Concrete slab, vinyl tile, ceramic tile and carpet flooring; painted concrete and gyproc walls; exposed and t-bar ceilings. Units have 2 piece washrooms (unit 104 has rough-in only). Level of leasehold improvements varies within each unit: Unit 109/110 is fully developed to office space; Unit 104 is finished to offices with warehouse at the back; 107/108 includes a large upscale showroom with warehouse at the back; Unit 103, 105, 106 are predominantly shell space; Unit 101/102 comprises a retail area and warehouse with offices at the back.

Site Improvements: - Paved traffic aisles, 56 customer surface parking stalls, concrete curbing lighting, store front concrete walkways and landscaping. Paved access is available from both Commerce Avenue and Jenkins Street.

SITE PLANS:

LAND USE CONTROLS:

ZONING

The subject property is zoned C10, Service Commercial, pursuant to the City of Kelowna Zoning Bylaw No. 8000.

The purpose of the C10 zone is to designate and preserve land for the accommodation of a mix of commercial uses, including vehicular oriented areas, not provided for in other zones.

The C10 zone includes numerous permitted uses. The C10 zone prescribes a minimum lot width of 30 m, except it is 40 m if there is no abutting lane. The minimum lot depth is 30 m and the minimum lot area is 1000 m2, with a minimum front yard of 2.0 m. Maximum site coverage is 60% and maximum floor area ratio is 65%. The maximum building height is the lesser of 12.0 m or 3 storeys. Reference is directed to the relevant section of the C10 zoning bylaw attached in the Addenda illustrating the list of principal uses, subdivision and development regulations.

OFFICIAL COMMUNITY PLAN

The subject property is designated SC – Service Commercial on the City of Kelowna Official Community Plan Future Land Use Map 4.1. 28

With reference to Section 4.5 of the City of Kelowna Official Community Plan, SC – Service Commercial includes developments for the provision of business support services and other commercial uses requiring extensive on-site storage. Building densities would be consistent with the provision of the C10 zone of the Zoning Bylaw.

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