A prime near-waterfront development site in downtown Kelowna has sold for almost four times its assessed value and $4 million over the asking price.
The 3.95 acre site at the northwest corner of Ellis Street and Bay Avenue, formerly owned by BC Tree Fruits, was sold for $23.75 million to Kelowna-based Mission Group, a development firm.
The site, which includes a 90,000 sq.-ft. warehouse, has a current assessed value of $6.1 million.
Mission Group are the builders of such projects as the Brooklyn and Bertram high-rises in downtown Kelowna and it’s the company behind the massive Aqua project along the lakeshore in South Pandosy.
The company has no immediate plans for the former BC Tree Fruits site, according to Jeremy Dawn, the firm’s director of real estate. But he encourages “interim tenants” to contact the company.
BC Tree Fruits, a grower-owned enterprise that markets the sale of soft fruit such as apples and pears, has been selling off surplus properties for several years.
“Based on a strategic review, we’ve determined that it’s no longer necessary for the co-op to maintain this facility,” BC Tree Fruits chief executive officer Warren Sarafinchan said in April when the Ellis Street/Bay Avenue property was listed for sale at $20 million.
The fact the site sold for nearly $4 million over the asking price reflects the development community’s keen interest in the property, which is immediately adjacent to the former Tolko sawmill.
That former industrial operation, shut down in early 2020, covers 40 acres and a city-directed planning exercise is underway to transform the area into a major new residential and commercial district.
City councilors have heard the property newly acquired by Mission Group will likely be included within the boundaries of the Tolko redevelopment plan.
The property was sold by HM Commercial Group, licensed with Macdonald Realty Kelowna. It’s the same company that sold a property formerly owned by BC Tree Fruits for its headquarters at the corner of Queensway and Water Street last year. It had been listed at $5.2 million; it sold in less than two months for $7.5 million.
Proceeds from the sales of the surplus properties, BC Tree Fruits says, are being put toward paying down debt and new investments that will benefit the co-op.
