Victoria developer gets plenty of bang for her buck

Non-profit developer who leveraged funding hopes rental project the first of many

After developing Loreen Place

After developing Loreen Place

On March 1, with no media fanfare, a new below-market apartment building quietly started accepting tenants.

The 52-unit building at 21 Gorge Rd. E. marks a new beginning for the site, which housed the notorious Capri Motel until its demolition in 2009.

For developer Alanna Holroyd, its successful completion proves rental housing can be achieved with only modest capital grants and no ongoing rental subsidies.

She named the building Loreen Place after her mother, Loreen Vandekerkhove.

“She was raised poor and she remembers it quite well,” says Holroyd, who created the non-profit Greater Victoria Rental Development Society in 2009.

She secured a $9.8-million loan to construct the building with only $740,000 in grants up front.

“In the business world, that is unheard of,” she says.

Traditionally, developers have needed to raise 50 per cent of the cost to get a loan.

Touring through one of the unrented units, Holroyd proudly points to the wide, white baseboards. “We really put thought into if we’d want to live here.”

Her desire for a beyond-the-basics facility has fuelled a good-humoured tug-of-war between Holroyd, the idealist, and her business partner, Kaye Melliship, the pragmatist.

“We’re going to reduce some of the extras in our next building,” says Melliship, executive director of the Greater Victoria Housing Society, which manages and co-owns Loreen Place.

“You have to be very realistic about the cost of maintaining the building.”

“But then it wouldn’t be so nice!” argues Holroyd.

With a grin she adds: “See how we work well together?”

Holroyd won the argument when it came to including features such a light above the tub (good for shaving, she says) and large garden beds in the interior courtyards.

“She even petitioned for in-suite washers and dryers,” Melliship says with an exasperated smile. On that final point, she put her foot down.

So far, 17 of the 52 units have been rented, and it turns out the rooms with the views aren’t the ones in demand.

All the cheapest, courtyard-facing units have been signed for. It’s a clear signal of where the biggest shortage lies in the rental continuum.

To be eligible to rent at Loreen Place, tenants’ household gross income can’t exceed $65,000. It targets low-to-moderate income earners – a wider mandate than most “affordable” housing projects.

Rent for two-bedroom apartments ranges from $875 to $1,300, making it not far off the average for Victoria. Throughout the metropolitan area, average rent was pegged at $1,000 in October, 2011, according to the Canadian Mortgage and Housing Corporation.

Over time, however, rents at Loreen Place will drop, as the mortgage is paid off.

“It will just get cheaper and cheaper,” Melliship says.

“It sounds like a great project,” says Tom Durning of the Tenant Resource and Advisory Centre.

“I hope other municipalities take note of that.”

While municipalities often don’t have spare land, they can encourage rental housing in other ways, such as through rezoning, he says.

“They can do density bonusing, they can ease parking restrictions. It’s not just a monetary thing,” he says. “In a case like this, you’re getting a 52-unit project and all they needed was a little bit of start-up money … Why can’t we do more of them?”

Holroyd is working on just that.

She has submitted a rezoning application to the City of Victoria to redevelop the Friendly Inn, right next door.

“We still have to ask for construction financing, but it’s nice to have something where they can kick the tires and see that the building actually was produced with only $740,000 in capital.”

rholmen@vicnews.com

Did you know?

• As of October 2011, the vacancy rate in the city of Victoria was 1.8 per cent, compared to a regional rate of 2.1. See related story.

Just Posted

Greater father involvement in the home leads to improved childhood development and increased marital satisfaction, says expert. (Black Press Media file photo)
University of Victoria researcher finds lack of father involvement a drag on gender equality

Working women still taking on most child and household duties in Canada

New COVID-19 cases on Vancouver Island by local health area for the week of June 6-12. (B.C. Centre for Disease Control image)
New COVID-19 cases up on Island, but health officials say trends going right way

There were 22 new COVID-19 cases in Greater Victoria last week after just four the week before

Emergency health services treated a person after they were blocking traffic at the intersection of Fort and Douglas Streets on June 17. (Evert Lindquist/ News Staff)
Victoria intersection traffic returns to normal after protester blocked roadway

A person in a motorized wheelchair was blocking the intersection at Fort and Douglas Streets

Eric White’s roadside farm stand in Metchosin sits stocked with produce. (Photo courtesy of Eric White)
Fledgling Metchosin farmer frustrated by thefts from stand

Eric White said every dollar made at the roadside helps sustain his farm

Saanich police took a suspect into custody after a store employee on Cedar Hill Cross Road was assaulted Wednesday afternoon. (Black Press Media file photo)
Employee assaulted at Saanich store after asking suspected shoplifters to leave

June 16 incident saw worker taken to hospital with non-life-threatening injuries

People line up to get their COVID-19 vaccine at a vaccination centre, Thursday, June 10, 2021 in Montreal. THE CANADIAN PRESS/Ryan Remiorz
Vaccines, low COVID case counts increase Father’s Day hope, but risk is still there

Expert says people will have to do their own risk calculus before popping in on Papa

(Black Press Media file photo)
POLL: When was the last time you visited the mainland?

The films are again lighting the screens at local theatres, the wine… Continue reading

Anyone with information on any of these individuals is asked to call 1-800-222-TIPS (8477) or visit the website victoriacrimestoppers.ca for more information.
Greater Victoria Crime Stoppers wanted list for the week of June 15

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

The Co-op gas station at Whiskey Creek is burning after a camper van exploded while refueling just before 4 p.m. on Thursday, June 17, 2021. (FACEBOOK PHOTO)
Exploding camper van torches Highway 4 gas station between Qualicum Beach and Port Alberni

Highway traffic blocked after Whiskey Creek gas station erupts into flames

Helen Austin performing with Trent Freeman at the 2018 Vancouver Island MusicFest. Austin is one of the many performers listed for the 2021 event.
Vancouver Island MusicFest goes virtual for 2021

Black Press to stream 25 hours of programming July 9-11

FILE – A science class at L.A. Matheson Secondary in Surrey, B.C. on March 12, 2021. (Lauren Collins/Surrey Now Leader)
Teachers’ union wants more COVID transmission data as B.C. prepares for back-to-school

BCTF says that details will be important as province works on plan for September

Provincial health officer Dr. Bonnie Henry outlines B.C.’s COVID-19 restart plan, May 25, 2021, including larger gatherings and a possible easing of mandatory masks on July 1. (B.C. government photo)
B.C. records 120 new COVID-19 cases, second vaccines accelerating

Lower Pfizer deliveries for early July, Moderna shipments up

A Heffley Creek peacock caught not one - but two - lifts on a logging truck this month. (Photo submitted)
Heffley Creek-area peacock hops logging trucks in search of love

Peacock hitched two lifts in the past month

The Calgary skyline is seen on Friday, Sept. 15, 2017. THE CANADIAN PRESS/Jeff McIntosh
2 deaths from COVID-19 Delta variant in Alberta, 1 patient was fully immunized

Kerry Williamson with Alberta Health Services says the patients likely acquired the virus in the hospital

Most Read