We are very excited to provide this major update to all our investment partners in the Five Bridges Development Project.
We have achieved three significant milestones over the last two weeks and congratulate the development team on the excellent progress to date.
Milestone #1: Completion of the property assembly acquisitions
On Monday, November 22, 2021, the final two properties which make up the six-lot land assembly, were acquired into the development limited partnership. This marked the final step in gaining control over the land to be developed, after successfully organizing the equity capital raise and financing requirements needed to fund the purchase.
As background, the properties were negotiated for purchase in January of 2021 with conditions and closing dates scheduled throughout the year. The properties were acquired at a total purchase price of $5,916,000 exclusive of closing costs, and all six lots were appraised mid-year at a combined value of $7,000,000 prior to receiving zoning approvals.
Milestone #2: First reading for rezoning and development permit successfully passed
On Monday November 15, 2021, the mayor and councilors in the City of Kelowna council chambers reviewed and passed the first step of the application for rezoning and development permit for the Five Bridges project. The previous week, a neighborhood consultation meeting that was hosted by the development team, and the mayor, council, and city staff were very decisive in their unanimous vote of approval for first reading on the project which can now proceed to second and third readings.
Based on the timeline that was scheduled for the city approval process, and having received the first reading on the 15th, the next hearing for the Five Bridges Development Project has been set for the end of November. We look forward to providing another update following the next council meeting when the project will be put up for both the second and third reading approvals.
Milestone #3: 50 confirmed condo reservations and 10 back up list reservations
As many of you know, an option was offered for investors to reserve a spot on the condo pre-sale list to lock in their position to choose a unit before public sales launch. This was an opportunity for people who wanted to not only invest in the development of the building but also purchase a condo unit for resale or rental purposes.
We opened 50 spots and are pleased to announce all 50 reservations have now been confirmed with investors who have invested at least $30,000 in the project, and that interest levels were so high that we have also created a waiting list, in the case of any reservation becoming free.
This is significant for two reasons. The first is it demonstrates the value of the real estate that we are offering, as people understand the appeal of the price point in the market and the advantage of the site’s location. The second reason is that once those 50 reservations turn into sales, we will have pre-sold one-fourth of the building without any advertising and prior to the public launch. Both statements are strong arguments for the strength and attractiveness of this project in the Kelowna market.
Going Forward and the New Year
We are looking forward to our next progress update early next month and we have our next Meet the CEO webinar scheduled for December 9th before the holiday season begins. At that Zoom event we will be introducing a new alliance with Stact Financial that will contribute to investor’s ability to finance their real estate investments. It’s an exciting new relationship and you’ll want to stay tuned for more information.
We are now into the final offering of 9.6% preferred return units. Upon either the final forth reading approval for development permit or the completion of $5.5 million of investment received, we will change the preferred return from 9.6% to 8.4% for the last round of investment before construction commences. We are happy to speak with you and provide more details or answer any questions that you may have if you have been considering an investment but haven’t decided yet, as now is the most advantageous time prior to preferred return rates decreasing.
Thank you to everyone who has participated thus far in the Five Bridges Development Project. We are very pleased to be able to say that everything is on track and on time.