Shopping Neighborhood
Fraser Gateway Centre
43971 Industrial Way, Chilliwack, BC V2R 3A4
Listing Price: $33,600,000
Investment Overview
Located adjacent to the Trans-Canada Highway, Fraser Gateway Centre comprises three long-term land leases, including a 150-room Fairfield by Marriott Inn & Suites (the “Marriott Hotel”), a standalone Tim Hortons with drive-thru, and a Canco Gas Bar with an integrated drive-thru QSR, together with a 14,805 SF retail building featuring eight commercial retail units (CRUs) with a diversified, complementary tenant mix including QSR, liquor, and convenience uses. Overall, Fraser Gateway Centre encompasses a 4.46-acre site, improved with 4 freestanding buildings totaling a gross floor area of ov er 102,590 SF. The land leases contribute 66.21% of th e net operating income, providing investors with stable, bond-like cash flow
supported by strong tenant covenants and contractual rent escalations. Importantly, the land lease structure has resulted in the majority of capital investment being made directly by the tenants, with the value of tenant-funded improvements, particularly the hotel, significantly exceeding the total purchase price, underscoring the depth of tenant commitment and enhancing the long-term security and durability of the investment.
Fraser Gateway Centre
Investment Highlights
- NEWLY BUILT | TENANT-FUNDED IMPROVEMENTS | BELOW REPLACEMENT COST Newly constructed 4.46-acre landmark asset held as a 100% fee simple interest, with tenant-funded improvements that materially exceed
- TRANS-CANADA HIGHWAY EXPOSURE Positioned along Industrial Way with direct access and visibility to the Trans-Canada Highway (66,975 VPD), the Subject Property benefits from outstanding visibility, acc
- CAREFREE LAND LEASE INCOME Anchored by three long-term land leases that collectively contribute 66.21% of the net income and carry virtually zero landlord responsibilities, providing a bond-like incom
- ESTABLISHED BRANDS AND SECURE COVENANTS The tenant mix is anchored by established national and regional brands including Marriott, Tim Hortons, Canco Petroleum, and Angry Otter Liquor, which are backed by strong corporate covenants and indemnifiers.
- RENT ESCALATIONS 9 out of the 10 tenants include rent steps during their respective terms, supporting long-term NOI growth.
- EXCEPTIONAL TENANT MIX The eight unit commercial strip building is leased to a diversified and complementary mix of daily-use and service-oriented tenants, including Angry Otter Liquor, Firehouse Subs, Fresh Slice, Smoke2Snack, and Mission Cannabis.
- FLAGSHIP HOTEL LEASE WITH DEEP CAPITAL ALIGNMENT The 150-room Fairfield by Marriott Inn & Suites represents the largest tenant investment at Fraser Gateway Centre. The hotel is secured by a 27-year land lease (with add'l renewal options) supported by multiple corporate covenants and lender step-in rights held by the hotel's construction lender, reflecting substantial capital commitment and providing enhanced long-term income security.
- LONG-TERM LEASES The Subject Property boasts a collective 17.1-year weighted average lease term, driven by the longterm land leases with the Marriott Hotel, Tim Hortons, and Canco Gas Bar at 27-year, 10-year, and 15-year terms, respectively.
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Listing Price: $33,600,000
Investment Highlights
- NEWLY BUILT | TENANT-FUNDED IMPROVEMENTS | BELOW REPLACEMENT COST Newly constructed 4.46-acre landmark asset held as a 100% fee simple interest, with tenant-funded improvements that materially exceed
- TRANS-CANADA HIGHWAY EXPOSURE Positioned along Industrial Way with direct access and visibility to the Trans-Canada Highway (66,975 VPD), the Subject Property benefits from outstanding visibility, acc
- CAREFREE LAND LEASE INCOME Anchored by three long-term land leases that collectively contribute 66.21% of the net income and carry virtually zero landlord responsibilities, providing a bond-like incom
- ESTABLISHED BRANDS AND SECURE COVENANTS The tenant mix is anchored by established national and regional brands including Marriott, Tim Hortons, Canco Petroleum, and Angry Otter Liquor, which are backed by strong corporate covenants and indemnifiers.
- RENT ESCALATIONS 9 out of the 10 tenants include rent steps during their respective terms, supporting long-term NOI growth.
- EXCEPTIONAL TENANT MIX The eight unit commercial strip building is leased to a diversified and complementary mix of daily-use and service-oriented tenants, including Angry Otter Liquor, Firehouse Subs, Fresh Slice, Smoke2Snack, and Mission Cannabis.
- FLAGSHIP HOTEL LEASE WITH DEEP CAPITAL ALIGNMENT The 150-room Fairfield by Marriott Inn & Suites represents the largest tenant investment at Fraser Gateway Centre. The hotel is secured by a 27-year land lease (with add'l renewal options) supported by multiple corporate covenants and lender step-in rights held by the hotel's construction lender, reflecting substantial capital commitment and providing enhanced long-term income security.
- LONG-TERM LEASES The Subject Property boasts a collective 17.1-year weighted average lease term, driven by the longterm land leases with the Marriott Hotel, Tim Hortons, and Canco Gas Bar at 27-year, 10-year, and 15-year terms, respectively.
Investment Overview
Located adjacent to the Trans-Canada Highway, Fraser Gateway Centre comprises three long-term land leases, including a 150-room Fairfield by Marriott Inn & Suites (the “Marriott Hotel”), a standalone Tim Hortons with drive-thru, and a Canco Gas Bar with an integrated drive-thru QSR, together with a 14,805 SF retail building featuring eight commercial retail units (CRUs) with a diversified, complementary tenant mix including QSR, liquor, and convenience uses. Overall, Fraser Gateway Centre encompasses a 4.46-acre site, improved with 4 freestanding buildings totaling a gross floor area of ov er 102,590 SF. The land leases contribute 66.21% of th e net operating income, providing investors with stable, bond-like cash flow supported by strong tenant covenants and contractual rent escalations. Importantly, the land lease structure has resulted in the majority of capital investment being made directly by the tenants, with the value of tenant-funded improvements, particularly the hotel, significantly exceeding the total purchase price, underscoring the depth of tenant commitment and enhancing the long-term security and durability of the investment.
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