A Kelowna real estate group estimates the now-closed Tolko Mill’s land is worth nearly $ 50 million.
MCL Real Estate Group, a subsidiary of RE / MAX Kelowna, believes the 39.68 acres of prime industrial land left when the mill closed on Jan. 8, 2020 will skyrocket the price, when they are ready for development.
This is despite BC Assessment’s valuation of the Tolko lands at $ 19.1 million.
“As soon as this land is available and hits the market, there should be a ripple effect across the industrial market. Unfortunately, realizing the available Tolko Lands is more of a long-term matter, ”said Ken McLaughlin, Senior Partner and Commercial Specialist at MCL Real Estate Group, in an end-of-year report.
“The current mill needs to be shut down and part of the land needs to be extensively rehabilitated. Once this large piece of industrial land is completed, its value will increase.
“Based on the average price per acre for other I4 areas in north downtown Kelowna, a more realistic figure for the country is closer to $ 48,000,000.”
The report also states that there is pressure on more non-industrial uses in this area of Kelowna.
“Time will tell what the eventual redevelopment of the Tolko areas looks like, but when that happens it will be an interesting time in the Kelowna industrial market,” said McLaughlin.
READ MORE: Kelowna-Lake Country MP calls for an end to the softwood dispute
READ MORE: Kelowna’s Tolko Mill will finally close in 2020
@ Michaelrdrguez
michael.rodriguez@kelownacapnews.com
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