Bosa Properties officially broke ground on its second tower at Bayview Place on Wednesday, adding another piece to what is expected to be a more than $1 billion jigsaw puzzle on the 20-acre Songhees site.
Although the $40-million Encore project — 134 units within a 17-storey tower and adjoining low-rise building — is not expected to be complete until spring 2018, it hasn’t stopped the company from looking further ahead.
“I’d say we hope we are here again,” said Bosa senior vice-president Daryl Simpson. “We have no commitment to that, but we enjoy doing business with Ken [Mariash]. It’s been very easy and forthright, so if there’s an opportunity we’d look at it for sure.”
The new building will be southwest of Bosa’s 21-storey, 177-unit Promontory that was completed in the summer of 2014.
There will certainly be an opportunity to add to the mix.
Mariash is the owner of Focus Equities and master developer of the Bayview site who envisioned a $1 billion build-out when he first optioned the site 20 years ago. He said there are another five buildings on the master plan as well as the Roundhouse project, a planned commercial development likened to Vancouver’s Granville Island.
“This will be more than a $1 billion [project] now, costs have increased significantly, and we are not even half done,” Mariash said, noting the mix will include more high-rise towers and a seniors facility.
Mariash, who completed the first tower on the site, Bayview 1, in 2009, said he is thrilled to see his vision coming together, though he is still disappointed it took so long to happen. “When I first stood on this site, I was in my 40s and I had no idea that even though it was zoned it couldn’t proceed,” he said, noting delays with the city in the late 1990s cost him millions, pushed back development and meant he wouldn’t get the first tower complete for another 10 years.
Mariash credits a new city council under Mayor Lisa Helps with improving the building climate and being able to get things done.
Now he hopes to maintain partnerships such as the one with Bosa to build out the residential side of things, while he concentrates on the Roundhouse. “That one I think we will have to do ourselves,” Mariash said, noting that because it is an amenity, it’s not likely to be profitable. “I think it’s critical to the whole project. It’s needed.”
Mariash got approval from the city to redevelop the Roundhouse in June.
The Roundhouse project includes the restoration of the historic Canadian Pacific Railway site, adding new retail buildings and box cars to establish a retail destination and community gathering place, featuring space for performing arts, special events, retail and food.
Simpson said the Roundhouse is important, but not essential for Bosa to sell their units at the site.
“I think the success we had at Promontory proved you can have that success and have people want to be on this side of the [Johnson Street] bridge without amenities,” he said. “The Roundhouse is not here yet, it’s still a promise. But we do look forward to it being complete.”
Most of the sales work at Encore has already been done. The building is now 70 per cent sold out.
“That would have been a surprise to us two years ago,” Simpson said, noting it took some time to get traction with Promontory.
“The difference this time is the buyer in that $500,000-to-$1 million range is active and committed. Four or five years ago, they said they wanted it, but didn’t take action. Now they don’t want to miss out.
“And this tower is on the south side of the site, there’s nothing in front of them.
“It’s something special.”
Simpson said they have also tailored the suite mix to suit the market, meaning larger suites.
