Goodman Report reveals the rents, revenue, and profitability of one Vancouver apartment building
For years, I've been receiving newsletters from the father-and-son team of David and Mark Goodman, who sell apartment buildings in the Lower Mainland.
Their Goodman Report should be required reading for anyone interested in what's going on in this segment of the real-estate market, including tenants.
The most recent newsletter lists the asking prices of seven buildings: 1929 West 3rd Avenue (53 suites, $16.9 million), 531 Lonsdale Avenue (15 suites, $6.52 million), 1715 West 11th Avenue (65 suites, $18.5 million), 2250 York Avenue (14 suites, $5.6 million), a new 82-suite building in the Cambie Corridor ($25.95 million), a 135-suite tower on a high-density development site in New Westminster ($26 million), and 15088 Thrift Avenue in White Rock (nine suites strata-titled, $2.3 million).
There's an extensive description of Sharmerob Manor—the 40-year-old building at 1929 West 3rd Avenue—including the rents paid in each unit.
Of the 53 suites, 47 are one-bedroom apartments. Rents range from a low of $974 in unit 112 to a high of $1,695 in unit 205.
The laundry room will spit out $10,800 in annual revenue, based on an estimate of $900 per month.
The newsletter states that the effective gross annual income is $808,921 as of September 2012, which will be offset by expenses of $256,644. This leaves an annual operating profit of $552,277.
The asking sales price per unit is $318,868 and the assessed value of the land and improvements is $11.36 million.
The owner paid $41,261.66 in property tax in 2011.
Earlier this week, I interviewed the UN's former special rapporteur on adequate housing, Miloon Kothari, about Vancouver's housing crisis.
He said that if the city were serious about promoting affordability, it would start by conducting a detailed assessment of where low- and middle-income people live, as well as their housing conditions.
Imagine how much easier it would be to compile this information if the data in the recent Goodman Report was publicly available for all multifamily rental-apartment buildings across the city.
Then it would become fairly easy to determine which landlords were gouging tenants and which ones were being more reasonable in how they price their suites.
Follow Charlie Smith on Twitter at twitter.com/csmithstraight.