Staff accommodation sells with big ticket price

 | June 26, 2012

Big ticket houses have been moving at Sun Peaks, but the sale of Whispering Pines, a $4,980,000 commercial property at the resort, shows a new level of confidence in the local market.

“(This sale shows the buyers’) confidence in the resort, that we’re a going concern and keep moving forward,” says Peter Nixon, real estate manager for Sun Peaks Resort Corporation (SPRC). “You look at an approximately $5 million sale; it’s nothing but confidence for the resort.”

Sotheby’s International Realty at Sun Peaks sold the property, originally developed by Efficient Staff Housing of Kamloops, to Calgary developers after working with them for more than a year.

“It’s a very significant sale for Sun Peaks (as) a commercial property,” says Sotheby’s Liz Forster. “(The buyers) did a lot of due diligence to investigate the resort and had the confidence to invest here when there are so many choices.”

The two-year old, 47 unit structure, was developed as staff accommodation for Sun Peaks Resort employees.

The recent sale includes a net lease that retains SPRC as the property’s tenant, ensuring it will always be used as accommodation for Sun Peaks staff. Terms of the lease also stipulate that SPRC is responsible for all taxes and maintenance costs for the property.

“We have a long-term lease that goes with (the property) and I think that was part of the attraction of the purchaser too,” says Nixon, “having a stable lease in there for the long-term.”

The property nets $369,840 annually in income, with a capitalization rate of 7.4 per cent.