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A Vancouver developer with a 40-year track record has continued its acquisition pace with the purchase of one of the largest industrial parcels along Highway 1 in the eastern Fraser Valley.
In its fourth major commercial property acquisition in 2021, Denciti Development Corp. has acquired 7985 Lickman Road and 43971 Industrial Way in Chilliwack in partnership with Kadestone Capital Corp., the same duo that bought 8.5 acres of industrial land in Squamish this July.
Denciti also completed a six-acre, 90,000-square-foot strata industrial project in the Township of Langley this summer, with Nicola Wealth Real Estate, and sold it out at an average of $425 per square foot.
The Chilliwack deal, for adjacent properties, totals 12.4 acres.
The purchase price was not released, but BC Assessments reports that the 8.4-acre Lickman site sold on January 4, 2021 for $13.4 million. The Industrial Way property, of 4.4 acres, is currently assessed at $6.6 million.
Denciti bought the Lickman land in July and Industrial Way in August.
Denciti’s proposed development will “address the area’s skyrocketing demand for destination retail, commercial and industrial space,” according to a company release.
Chilliwack’s industrial vacancy rate is currently less than 2 per cent, meaning redevelopment is the only way to expand the industrial land supply, given the constraints of the Fraser River and Agricultural Land Reserve, according to commercial agency CBRE Ltd.
The Lickman Road site sits four minutes from downtown Chilliwack with easy highway access.
“This location truly serves as the gateway to the Trans-Canada Highway and the Fraser Valley,” said Garry Fawley, Denciti CEO. “From industrial to commercial to retail, we could even see a last-mile distribution facility or a national retail anchor tenant.”
“Over the last few years, demand has outpaced the supply of available industrial land and buildings in Chilliwack. Denciti will play an important role in meeting that demand, while supporting job creation and investment in our community,” said Brian Coombes, president of Chilliwack Economic Partners Corp.
“You’re seeing a lot of development of underused properties, including this one,” says Kyle Dodman, vice-president, industrial properties, CBRE. “It’s really going to bring a lot more opportunities for employment, and businesses and economic upturn to Chilliwack.”
Denciti plans to develop the site with highway-oriented commercial space, including light-industrial strata, a retail component and has plans to attract warehousing, distribution and logistics companies.
