Excavation was already underway at Cape Group’s rental housing project at 320 East 2nd Ave. in East Vancouver when the team decided in 2021 to halt the process and apply to substantially increase the size and scope of the building.
The enactment of the Broadway Plan in 2022 proved to be a game-changer for the Vancouver-based developer’s transit-oriented project.
Previously known as The Raphael, the development had been designed as a five-storey mass-timber rental building near the now-under-construction Great Northern Way-Emily Carr SkyTrain Station.
It has now been submitted back to the city as a 20-storey, mixed-use tower with 165 homes including 139 condos and 26 social housing units (to meet the Broadway Plan’s social housing requirements in rezoning packages).
“We basically saw an opportunity to align our project vision with the city’s vision for increased density,” Atilla Réshad, director of construction with Cape Group, said.
The new iteration of the project has yet to be named, he added.
He told RENX the new design will include ground-level retail uses and office space on the second floor. Three floors will accommodate the social housing units while the condos will reside on the top 15 levels.
“The redesign . . . increases the number of homes to 165 from 95, but also integrates a mix of uses that will contribute to the vibrancy (and) economic health of the Mount Pleasant area.”
Broadway Plan to transform neighbourhood
Réshad said Cape Group’s head office is located in the neighbourhood, which he described as having a diverse, rich history and “dynamic future”.
Today, it’s mostly a mix of low- and mid-rise housing projects (and a few towers), tech offices, creative spaces, industrial businesses, craft breweries and eateries. Many developers eagerly await the completion of the Broadway subway extension, set to link the neighbourhood to Arbutus Street on Vancouver’s West Side via six new stations. The subway is expected to open in 2027.
The Broadway Plan will help to further transform the neighbhourhood.
“Our development is strategically located just half a block west of the future Great Northern Way SkyTrain Station,” Réshad said. “This proximity to SkyTrain and transit will make it easier for the residents to commute . . . reducing reliance on cars and promoting a greener lifestyle.”
Réshad said the retail and office components will accommodate smaller businesses typical of the Mount Pleasant area. The current design aims for three retail units that would be available for lease, he said. The office component would include 14,100 square feet of work space.
Réshad’s team applied for the rezoning at the site a couple of months ago so they hope to see rezoning and development permissions follow, allowing construction to begin “within the next two years,” he said.
Further south and west, along the Broadway corridor, the city recently approved a mixed-use complex comprising a 21-storey tower and 28-storey tower by Reliance Properties and QuadReal within the Broadway Plan.
That site will include:
- 514 total rental homes;
- a daycare;
- public plaza; and
- commercial space at the site of the former MEC store.
The project represents one of the first major redevelopments within the plan, which will focus on facilitating housing, jobs and amenities around the new subway in parts of Kitsilano, Fairview and Mount Pleasant over the next three decades.
Market conditions pose ‘interesting’ chapter
The local development market is currently amid an “interesting” time, Réshad said, describing a situation with high housing inventory, sluggish sales but sticky-high prices.
“We are positive, but cautious,” he added.
That means making all of their next steps carefully and hoping for further cuts to the Bank of Canada’s policy interest rate, which fell for a second time this summer by 25 basis points (after RENX spoke with Réshad).
“We hope this trend will continue through the end of this year, and we’ll have a better and more positive outlook of the multifamily market,” he said.
Cape Group approaching 70 years in business
The late Ralph Schwartzman started Cape Group in 1956 as a construction company, and the organization has, over the years, added the development and property management components of the business.
“Our portfolio includes everything from low-rise and high-rise residential buildings to commercial, including office and retail and light industrial spaces,” Réshad said.
He said Cape Group senses a major shift toward transit-oriented multi-use buildings, and is aligning its portfolio with that type of project.
Among its past projects are the Richmond Auto Mall and the River Sports Centre in Richmond, as well as a mix of retirement homes, hotels, recreation centres and a bowling alley.
“Our projects are designed to meet these evolving needs and also are creating communities that are not only functional, but also vibrant,” he said.