Investment Firm First To Take Up Ladner Village's Density Play

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Kerry Gold has written about real estate and housing issues for a variety of publications, including a weekly real estate column for the Globe and Mail since 2008. She also writes investigative pieces for the Walrus, and has written for Maclean's, MSN, Yahoo, MoneySense, BC Business, the Toronto Star, L.A. Weekly and Variety.

Headwater Projects, a real estate investment firm that’s been around since 2008, heard that the small town of Ladner was amending its official community plan to allow for more density, up to six storeys. Now, their 131-unit, six-storey mixed-use Bridge & Elliott project is ready to sell.To the south of Vancouver, at the point where the Fraser River empties into the ocean, there is the small heritage fishing village of Ladner, which is part of the city of Delta.

Headwater’s business model is to develop wood-frame condominiums and rental apartments, and to buy and hold income-producing assets for their team of investors, as a long-term income stream. Most of their 25-plus holdings are apartment buildings and shopping centres located throughout the Lower Mainland, on Vancouver Island, and in the US. It’s a conservative model that is proving especially prudent in a high-interest rate climate., which the city is promoting for redevelopment.

Headwater purchased four properties on Bridge and Elliott streets in Ladner three years ago, shortly before the Ladner Village Official Community Plan Update had passed. They applied to rezone and develop the four consolidated properties and a lane. Unlike Vancouver, the city of Delta allows rezoning applications to be made concurrent with development applications, which greatly streamlines the process.

Because they are dealing with a flood plain, the two levels of parking must be above ground. The geotech required to go below ground is cost prohibitive. And in the current climate, margins are tight.“Our carrying costs that we have now are much higher than what they were when we forecasted the project several years ago, when we purchased it,” says Wark.

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