Another property has been disposed by local developer Westbank, with the latest being a significant mixed-use complex on Davie Street in downtown Vancouver’s West End neighbourhood.
This week, Crombie Real Estate Investment Trust announced they acquired the remaining 50% stake of the Zephyr property at 1641 Davie Street.
Built in 2021, Zephyr entails two towers reaching 21 storeys and 22 storeys that contain 330 secured purpose-built market rental homes. As of the end of June 2024, 94% of these units were occupied.
Within the base podium of the towers, the longtime Safeway grocery store on the city block returned to the property within a new 44,000 sq ft space.
Westbank and Crombie originally pursued Zephyr as a joint partnership. Crombie’s agreement to increase its ownership of the property to 100% carried a cost of $133 million, escalating its ownership of the property to beyond the ground-level retail uses with Safeway, which it previously already fully owned. The acquisition is expected to close later this month.
It is noted that Crombie will fully consolidate Zephyr and assume the additional 50% of existing mortgages, which carries a value of about $89 million.
Zephyr and Davie Street Safeway. (Westbank)
Zephyr and Davie Street Safeway. (Westbank)
“We are pleased to announce that upon closing of this transaction, Crombie will become the sole owner of one of Canada’s premier rental residential assets. Zephyr is in one of the country’s top markets and further enriches the quality of our rental residential platform,” said Mark Holly, president and CEO of Crombie, in a statement.
“The acquisition delivers on our strategy of optimizing our portfolio and to own and operate high-quality assets in vibrant community hubs that serve the everyday essential needs of Canadians. Our strong financial condition allowed us to pursue this important opportunity providing immediate recurring cash flow with significant future growth potential.”
Westbank and Crombie are also partners for the major redevelopment of the Safeway next to SkyTrain Commercial-Broadway Station, which recently saw a revised application submission outlining a significant increase in rental housing.
This is Westbank’s latest property disposal, adding to a growing list of properties it has recently sold elsewhere in Vancouver, as well as in Calgary and Toronto.
Designed by Henriquez Partners Architects, Zephyr is particularly visually distinct at nighttime for its significant programmable LED lighting feature.
“Zephyr” lighting public art installation at Davie Safeway at 1641 Davie Street, Vancouver. (Westbank/Crombie REIT)