Governments are joining the property rush along the Broadway corridor, spending millions in a gamble that will pay off if a rapid transit line is approved and built.
Both the City of Vancouver and Translink have purchased properties at or near the site of expected stations of the proposed Broadway line, while observers say other investors are paying big bucks for real estate.
“We’ve seen a number of properties trade this year along the Broadway corridor that as far as we can tell are record values,” said David Taylor of Colliers International.
“The buyers in each case are speculating that the future land values will increase as a rapid transit line is going to be developed,” he said.
Governments and investors are betting millions, he said, even though voters have yet to cast ballots in a referendum on some $7 billion in transit investments, including the Broadway line and light rail in Surrey. To pay for those improvements voters must approve a 0.5% increase in a sales tax.
The City of Vancouver bought the building that houses the Scotiabank at Oak and Broadway earlier this year for $5 million. It was assessed at $3.5 million.
And late this year Translink bought a building at 1909 West Broadway, near the line’s terminus at Broadway and Arbutus, for $6.2 million. It was assessed at $5.2 million.
Both agencies said they don’t anticipate the buildings will be used for transit stations, but are rather investment properties.
“The property was purchased as an income producing asset and currently houses an office building with retail that generates revenue for Translink. The intent of this acquisition is to look ahead and invest in property along anticipated transit corridors that generate income,” said Derrick Cheung, VP of Real Estate for Translink.
NDP transit critic George Heyman told CTV News he thinks Translink is betting that the referendum will pass.
“They’re counting on people of the region understanding that we need these transit improvements and therefore they’re getting ahead of the game,” he said.
A victory is no sure thing – a No campaign has pointed to $200 million snafus like the Compass Card implementation as a reason to vote against the referendum, while the provincial government has refused to take a side.
“This government has an opportunity to improve transit and they have been abdicating this for years. It’s the height of irresponsibility and it’s going to be damaging to B.C.’s economy,” Heyman said.
