Top 4 Things to Consider in a Land Assembly

Imagine trying to assemble different parcels of land into one piece - it's kind of like snapping building blocks. Except that we are talking about something people deeply value and cherish - their land. Due to their very nature, land assemblies require long timeframes to complete and can be very time-consuming. Often it is not just about the attributes of the land, but it is also about the people involved in the process.

HERE ARE FOUR WAYS TO LOOK AT LAND ASSEMBLIES:

  1. The Food Analogy

    • We all love food - mixing the ingredients and creating the right process generates something that causes taste buds to soar. While not to the same level, land can have those same special attributes that matter and how you mix these ingredients together, can mean getting the right profit for your land assembly and not getting it. Some might require a dab of more knowledge; others might be about to burn if you don't turn down the heat - what this means is that there are many variables involved, so knowing and not knowing what to do is part of the battle.

  2. The Ingredients

    • This technique boils down to an age-old question - is the whole greater than the sum of its parts? Aristotle thought so, but when you're describing land assembly, it's probably best to explain the ingredients that go into a land assembly.There is a standard question you have to ask - how do the ingredients play together?In the case of land assembly, it is about the people and in this case it will be different people with different situations. Just like flavors can be different, so can people. Land assemblies contain more than just a negotiation between a group of sellers and a buyer. They contain different ingredients: city council, planning departments, legislation, the transit authority, schools, neighbours, competing buyers and the opinion of the public are all ingredients that play their role in the process. Remember that if you introduce the wrong ingredient at an improper time, it can ruin the process. That's why it's imperative to have the right mix of ingredients and to know when to use them.

  3. Mixing It Up

    • Mixing up the ingredients is never easy, and people need to know what the process means - it is more complex than people think. Say, for example, your property is basil, and the other is oregano, separate they don't do much, but when combined, they make for a great mixture. The same can be said for people who own homes with land on them, and what makes a great mixture is when people work together and realize that the value of their property will increase the more they work together. Land assemblies are about assembling collectives of people with land that works to create value. It means that the more people work together through the process, the greater the value of their land assembly.

  4. The Complexities

    • Cooking boils down to a specific set of techniques and how you prepare your process matters greatly. Remember that once you have identified that this is the process that yourself and the rest of the owners in your area want to go down, now you have to think of what will need to take place. It's how you approach the ingredients and what you do with them that matters. First, you start by looking at your ingredients and evaluating if the right amount is there - then you need to consider if you have the right consistencies. Will there be extra cost increases associated with your ingredients, what will we do if other ingredients aren't available? How will we source certain ingredients?

Land assemblies are complex like cooking - managing each owners personal circumstances and expectations while monitoring potential stakeholders affecting the marketing and the marketing process to source and present to the best potential buyer, are all a part of the process.

You need to know if you have to add the following extras:

  • Will relocation be included?
  • Is it a group sale or is it individual?
  • What will affect the transaction?

Remember that the difference is in the details and having the right expertise is important - this is similar to being a well-trained and educated cook who understands the complexity of food and what seasonings will work together and what will not. That is why it is important to work with an experienced Commercial REALTOR that specializes in complex land assembly - one that has the knowledge and expertise to ensure your best interests are their responsibility. It's like trusting a highly recognized chef who can expertly put all of the ingredients together to create an amazing dish.

How To Maximize Value in a Land Assembly

How To Maximize Value in a Land Assembly

Land assemblies involve the selling of unique properties in a single transaction to maximize value in a situation that would otherwise not happen. They require longer time frames to complete and are very complex - mostly this is due to the alignment of ownership expectations and sourcing appropriate buyers for their project. Then the process of creating bid pressure to source the best price and terms for the sellers take place. In this article, we identify the three different groups involved and their unique considerations, in order to help guide you through the complex process of selling a Land Assembly in Vancouver.

When might ownership want to consider land assembly as an option for a group of owners?

The official community plan (OCP), neighborhood community plan (NCP) or zoning that may increase the density or use of the particular parcels of land. As buildings get near the end of their operating life, typically a strata or co-operative, the cash required by each owner to maintain in special or future capital investments are becoming costly compared to the property value.
A common need arises where all land owners know that things can only by achieved through a much larger, collective approach. If the land needs servicing (sewer, water, gas, electricity, and other services), where the cost of any individual parcel would be prohibitive and far too costly (I.e...the creation of a master community plan.

Let's Look at The Three Different Groups Involved and Their Considerations:

1.For Contractors/Developers

When you consider that 50% of all commercial transactions in the lower mainland have to do with land acquisition, you can understand that demand for parcels is high. That's why it is important to understand where to look for the right land and how to go about developing it for the right opportunities. Contractors and developers will generally have a set of questions.

Where are the best land sites in Greater Vancouver that offer the best "up-side" and profit areas given the cost of new land and construction?

Given the number of land transactions we complete, our brokerage is face to face with either the principals or senior acquisition managers almost every day. We track the type of land sites most desirable to them individually, under what circumstances they are able to play the highest price, and how we need to prepare opportunities to attract their attention. As these firms require new land to keep them active, this is the time when they have the highest capacity to pay well for land.

2.For Strata Councils

Strata corporations and councils are faced with the surprise of receiving offers from developers for the whole building or select units, and this often leads to questions. These questions often range around the issue about new OCP/NCP announcements. Remember that property owners in a land assembly are essentially shareholders or partners in a transaction. Once agreed, each most be fully and equally committed to realizing a successful conclusion. If one partner decides to renege or change direction in their commitment, it will have implications for the other parties, including themselves.

Land assembly sales can create a significant increase in value for their properties.  They can also cause stress, uncertainty and disappointment if not fully understood.  That's why it's important to work with a REALTOR who understands the process and knows how to approach developers while understanding the most effective way of ensuring proper representation for the owners.

 

Should you choose a Bill 40 wind up or land assembly?

 

Strata Dissolution under Bill 40 provision

 

Group Assembly

3.For Sellers

Land in Vancouver is a finite commodity - and you have to ask yourself: is the land under your parcel, more valuable than the property itself? Some landlords have heard stories of people getting massive values from their properties that equate to almost double the value of the property as an apartment building. Sellers might have been approached by a realtor and told about a land assembly, or they heard rumors at a strata meeting. The general mentality might be to hold out - just realize that there is a lot of misinformation that exists and getting the right advice from the start of the process will help you make the right decision.

Selling property requires the right mix of good preparation and a strong parcel of lots to maximize value. Our process ensures that owners will be both represented and independent and will make decisions based on well-vetted information and details. Aligning expectations with the land development process is the largest part of work that has to be done when attempting to maximize the value of a land assembly.

Other things that need to be considered:

 

With over 20 years experience in land, redevelopment and assembly transaction, we have represented sellers in all major municipalities in the Lower Mainland and across Canada. Our global reach has seen us personally take investment opportunities to Hong Kong, China, Vietnam, Dubai, and India in the last 24 months. With over $1.5 billion in sales and $450M in completed sales, we rank #1 in Vancouver for Royal LePage and #14 across Canada, in overall sales, at Royal LePage nationally.

Given the number of successfully completed land transactions, our brokerage knows what it takes to build the right value on a project. That's why making the right choice about aligning your project with a brokerage known for turning land assemblies into a success is essential.

Get your Land Assembly Report

A Guide to Land Assembly in Vancouver

A Guide to Land Assembly in Vancouver
As one of the most popular and densely populated cities in Canada, Vancouver is continuously experiencing growth and expansion. This growth has led to an increase in demand for land, leading to land assembly becoming a popular method for developers to acquire large plots of land in the city.
What is Land Assembly?
Land assembly is a process of combining multiple adjacent land parcels to create one large parcel of land. This process is typically used by developers who require a large piece of land to construct a new development, such as a residential or commercial building. In Vancouver, BC, land assembly has become a go-to strategy for developers to acquire property for development ventures.
Benefits of Land Assembly
This practice offers several advantages, making it an attractive option for those looking to maximize their return on investment.
One significant benefit of land assembly is the increased development options it provides. By combining several smaller plots of land, you can create a more substantial and versatile piece of property. This larger parcel of land allows for more flexible design options, enabling you to create a more attractive and desirable development. This, in turn, can lead to higher property values and increased profits.
Another advantage of land assembly is the potential for increased land value. When multiple parcels of land are combined, the resulting piece of property may be worth more than the sum of its parts. This increase in value is due to several factors, including the improved development options and increased marketability of the property. You can capitalize on this increased value by selling the assembled land at a premium, resulting in a higher return on investment.
Land assembly can also help streamline the development process. By combining multiple parcels of land into one, you can reduce the number of individual landowners involved in the project. This can result in a smoother, more efficient development process, with fewer negotiations and legal hurdles to overcome. As a result, you can save time and money, allowing you to focus on creating high-quality development that meets the needs of the market.
Challenges of Land Assembly
While this all sounds great, land assembly is not without its challenges.
One of the primary challenges of land assembly is the negotiation process. Negotiating with multiple landowners can be time-consuming and complex, which can lead to delays in the development process.
And let's not forget about the elephant in the room: Vancouver land assembly prices. Land assembly can be a pricey venture, with expenses like land acquisition, legal fees, and due diligence weighing heavily on the wallet. Plus, as part of a land assembly sale, you'll likely be paying an inflated price compared to buying from individual sellers, as the cost of acquiring multiple parcels of land and negotiating with multiple landowners is factored into the final price tag.
After all that time and effort, there is no guarantee that land assembly will be successful, and if negotiations break down, the project may need to be abandoned.
Process of Land Assembly
The process of land assembly in Vancouver typically starts with the identification of multiple parcels of land that can be combined.
Once the parcels of land have been identified, the developer will need to negotiate with the individual landowners to acquire the land. Negotiating for land assembly can be about as fun as a root canal, so it's a good idea to bring in the big guns - aka a realtor or lawyer - to help you through it.
And once the land has been acquired, you will need to go through the necessary zoning and permitting processes before construction can begin.
Legal Requirements for Land Assembly
As with most things in life, there is a bit of red tape to cut through before you can start constructing or altering any buildings in Vancouver. Land assembly in Vancouver is subject to a variety of legal requirements where developers must ensure that they comply with zoning regulations and obtain the necessary permits before construction can begin.
But wait, there's more! You can't just go willy-nilly throwing up buildings without taking the environment into consideration. That's where environmental assessments come in. You've got to make sure you're not causing any harm to our surroundings or the critters that call them home. So, get those assessments done.
Cost of Land Assembly
So, how much does land assembly cost, you ask? Well, as you might expect, it depends. The size of the parcel, the number of landowners involved, and other factors can all impact the final price tag. From land acquisition costs to legal fees, due diligence expenses to development fees, there are many expenses to consider.
But before you start hyperventilating into a paper bag, take a deep breath and remember that all is not lost. Financial planning and a cost-benefit analysis can help you determine whether land assembly is a financially sound choice for your project.
Land Assembly in Different Areas of Vancouver
Land assembly for sale is prevalent in different areas of Vancouver. In East Vancouver, land assembly has become popular due to the availability of older, single-family homes that can be redeveloped. In North Vancouver, land assembly is often used for the development of new townhouses or mixed-use buildings. In West Vancouver, land assembly is primarily used for the construction of luxury homes.
Conclusion
Land assembly can be a complex process, but with the right team on your side, it can be a highly rewarding investment. So why not take the first step towards your next big project by visiting Klein Group? With our extensive database of commercial and residential real estate properties in Canada, you're sure to find the perfect parcel of land for your needs.
Start searching today and let Klein Group help make your dreams a reality!

Western Investor - Chilliwack 2.4-acre industrial site sells for $5.5 million

Considered a record per-acre price for Chilliwack industrial, the site is zoned for service industrial on Progress Way.

Property: Industrial
Location: 44394 Progress Way, Chilliwack
Size of property: 6,700 square feet (2 buildings)
Size of land: 2.5 acres
Zoning: M-I Industrial
Sale price: $5.5 million
Date of sale: March 31, 2021
Brokerage: Klein Group – Royal LePage Westside, Vancouver
Broker: Dmytro Chernysh of Klein Group, Royal LePage Westside

As seen on www.westerninvestor.com

Is a Bill 40 Wind Up Right For Your Strata Council?

Is a Bill 40 Wind Up Right For Your Strata Council?

Strata wind-ups are a great way to realize the economic potential of a multi-unit residential property, by leveraging the value of each strata unit in the strata to a developer that wishes to develop on the property. Despite being a great way to realize the economic potential of your property, the wind-up process can be a complex one that involves real estate law, condominium law with the law of restructuring.

Many strata owners wish to wind up a strata corporation but are not aware of the complications and effects this may have on all parties if they skip seeking professional advice. It is extremely important that before moving ahead with the process that all parties involved have a clear understanding of what to expect. This way, the process is much more likely to pass through smoothly right from the start.

Winding Up a Strata Corporation

The update to the strata property law in 2016 meant that strata corporations can now apply to the court to cancel a strata plan and voluntarily wind up, pursuant to a resolution approved by at least 80% of the owners involved.

This option is a desirable one, especially for older stratified developments that are about to face significant structural or building repair expenses. Other significant factors for owners to sell their property to a developer may include a change in zoning or an increase in neighborhood density. The former generally makes the property more attractive for developers willing to pay for the building and land.

In contrast, the issues that face a strata corporation in achieving its goal of winding up and selling it's previously strata-titled property to a developer is complicated. The process is generally technical with various steps the court requires to oversee the complete process.

If the strata wind-up process is not completely compliant with legislation, the court may also decline the proposal which will then incur additional costs and set back the sale months or even years.

The Strata Winding Up Process

Over the years, the availability of open land suitable for development has continued to dwindle. As a result, real estate developers are now turning to strata corporations to get adequate land for development.

Often a termination process starts when a developer approaches a strata corporation wishing to buy all the strata lots for redevelopment. Or a strata corporation may be interested in winding up and selling for redevelopment because of excessive repair and maintenance costs.

The key during the process is for open clear communication with owners with meetings held from the very beginning to discuss options. It is important to keep owners informed on the termination and the distribution of funds if the sale is to go ahead to a developer.

Owners will also want to understand how funds from selling would be disbursed. If the majority of owners are interested in termination, usually a resolution is adopted to enable the strata council to move the process forward and hire a legal counsel.

At this stage in the process, it’s important for the strata council to then hire an experienced real estate broker to market the property and negotiate for the best possible price from the developer. It’s important that owners understand the building value in the market and have professionals who can negotiate on their behalf.

The winding-up resolution drafted by strata’s legal counsel authorizes the strata corporation to apply for termination orders in the supreme court plus vested orders to approve expenditure or other miscellaneous matters such as rent-free timelines or move-out durations.

Land Assembly

Land assembly refers to the concept of selling multiple properties in a single transaction to create a higher value for each property owner.

The land assembly is often influenced by 3 major factors that include:

Typically, owners may consider redevelopment/land assembly/strata assembly or a Bill 40 strata windup as an option when the assembled land valuation is 30% or more together as a group, providing an opportunity that cannot be achieved by remaining as a single property. Market timing and development potential must also be in alignment.

Since land assembly is a real estate transaction that is affected by market conditions, these high yield transactions attract higher risks. As such, it should be understood that property owners in a shared land assembly are considered shareholders in all transactions.

Why Klein Group Royal LePage Can Help?

Klein Group Royal LePage is a commercial real estate brokerage firm with over 25 years of experience in representing property owners for the purpose of maximizing land values, especially in unpredictable markets.

We have represented land and strata owners in all major municipalities in the Lower Mainland and across Canada. Our global reach has seen us personally take investment and land opportunities to Hong Kong, China, Singapore, Vietnam, Dubai, India, and Australia.

Although offers are determined by the investor/developer, we conduct an extensive review of how to determine individual owner value by reviewing several factors: unit entitlements, unit size, condition of the unit, recent upgrades, assessment value, and special cases within a building or assembly. This ensures owners are treated fairly when only one or two factors might skew a final selling price away from reality.

One of our strongest success factors is deal knowledge. Given the number of sales, we complete we know what developers were prepared to pay, which were unsuccessful in their bids and how much they would be prepared to offer the next time around.

This information is invaluable to our clients because we can put them ahead of expectations; this has allowed us to reach multiple market record sales for our clients, time and time again. Our carefully mapped process and the time we take in preparation are the keys to our success for our clients.

Hiring a Commercial REALTOR®

Since land assembly issues can be complex it’s important to seek the representation of a professional commercial REALTOR® broker like Klein Group Royal LePage that is well versed in complex land transaction matters.

By hiring a professional REALTOR® that specializes in complex land transactions this will help to ensure that your land sells for the right price and to the right developer. With a professional representative of the land ownership group, there will be guaranteed compliance with the owners’ best interest.

At Klein Group Royal LePage we ensure there is the protection of owners’ equity in their property. A Land assembly when well executed is one of the best strategies that landowners can use to maximize the value of their properties.

Our team at Klein Group Royal LePage will walk with you every step of the way with the land assembly transaction to help ensure you get the best possible land value in such an unpredictable market.

Knowing The Right Price for your Property?

By hiring Klein Group Royal LePage Commercial our team will start by completing a full proforma valuation of the land by analyzing the best development alternatives that can attract the maximum use. These proformas are then scrutinized via an independent appraisal by engineering, banking, and construction firms to ensure all market changes in any sector are well accounted for.

When the findings are ready, we present them to our clients and explain them in detail, so you have a clear understanding of how we arrived at such conclusions. Understanding your building value in the market does not mean you have committed to a sale, as you still have many options available. We ensure that we demonstrate to our client how the values we have arrived at would have differed either in past markets and how they can be affected by recent and future market changes.

Will The Brokerage Firm Help Us Relocate After The Sale?

Klein Group Royal LePage is the national leader in relocation services with over 80% market share. In an effort to provide a hassle-free process with your sale and to ensure that every owner retains as much of the sale proceeds as possible, we offer a 20% written discount, as our clients, of the repurchase selling fee if you wish to retain us to buy your next home, property or investment.

This service is completely optional, and you can request it from our brokerage up to a year after the sale of your building completes. Our office has a full complement of local, residential specialists that can assist you in your next move or investment after the sale. Our goal is to make your whole experience with us a hassle-free process that maximizes your return.

For more information on strata wind up and how Klein Group Royal LePage can help you get the best possible sale for your property, contact our team here today.

Bill40 Strata Wind UpDownload the PDF

 

2021 BC Population, Geography, and Housing

Beautiful British Columbia's geography poses a challenge for housing. 2.4M out of 4.6M (54% of total) British Columbians lived in Greater Vancouver based on 2016 census. Geographically, Greater Vancouver only occupies 0.31% of British Columbia's land mass. Moreover, Greater Vancouver's growth is limited in three directions: mountains to the north, ocean to the west, and US to the south. Hence, the only direction the city can grow is to the east, or to go up (higher density).

The types of housing (single-family, apartments, etc.) is planned and regulated by BC municipalities. In Greater Vancouver alone, there are 23 municipalities that determine their own policies and plans. All of those plans can also be changed after every 4 year election cycle. That disrupts planning, and execution, of any long-time regional strategy. Further investments will also be inhibited due to perceived political uncertainty. Within this framework, developable land will remain scarce, and prices will have nowhere to go but to go up.

BC Population Geography and Housing

5 Tips on Choosing the Right Real Estate Agent

There are many real estate agents out there and finding the right one can be a daunting task. Even the titles themselves can be confusing: agents, brokers, salespeople, and REALTORS®. Real estate agents help to guide you through the buying and selling process. In British Columbia, they hold licenses from the Real Estate Council of BC and they are REALTORS®, and they are members of the professional associations of REBGV, BCREA, and the CREB.

Brokers are people who are legally responsible for their agents, are licensed by the province to collect fees and oversee negotiations for a transaction. Brokers or realtors manage a real estate office, work on their own, or operate in an office under another broker.

REALTORS® are brokers and agents who belong to the British Columbia Real Estate Board BCREA.ca, and the Greater Vancouver Real Estate Board (REBGV.org) - which are professional associations with a code of ethics and standards.

A license to practice real estate does not guarantee that a real estate professional is the right person to help guide you through the sale or buyer process. You have to find the right fit. Are they experienced? Have they bought and sold multiple homes? Do they know how to write contracts? Are they skilled negotiators? Have they completed commercial and residential real estate transactions?

1.Assessing their Specialty

A lot is at stake in a real estate transaction - money, time, the future of your family’s happiness. So finding a qualified REALTOR® is important. Remember that a REALTOR®  must have local knowledge. This is a no-brainer, because buying, selling, or leasing a property is an anxious experience, and you want an agent who responds quickly. You want someone who has your best interests at heart and who specializes in those transactions.

2. Referrals and References

Past clients can tell you a lot about the integrity and skill of a REALTOR®. Remember to ask everyone you know for a referral: friends, relatives, co-workers, and neighbors. Listen carefully to the assessments, and ask questions - did the closing go smoothly? Did the agent help solve any problems?

3.  Meet with Them

Meet with the agent in person and ask these questions:

4.  Evaluate an Agent's Listings

This is trickier than it sounds. You want a potential listing agent to be successful and have lots of satisfied customers. On the other end of the spectrum, the more listings an agent has, the more divided his or her attention will be.

Take Jennifer McCappin, for example, she's very good at getting results for her clients, and the above listings are just a set of sample sales from the summer.  When evaluating a realtor, remember that look over the previous or current listings, because these will reflect the type of experience the REALTOR® has. Are they organized? Do they work in a team?

5. Ask How they Handle High-Stress and Problem Situations

Fact: The way an agent handles themselves during negotiations can make or break a deal. If you feel that your agent is confident enough to turn down a deal they believe is not in your best interest, that's a great sign. A good agent knows how to understand the parties needs and how to bring a deal together while remaining transparent.

Don't Skip Any Steps

Remember, your real estate agent will be with you for weeks or even months - take the time to meet them at their office and remember that this relationship could last six months or more. You will be in touch many times each day throughout this process, and this is a big decision. Plus, if you find an agent who is the right fit and produces the right results, you can always call on them to help in your next transaction. The agent you choose will make all the difference.

Learn How Our Specialists Make a Difference

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