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Fraser Gateway Centre
43971 Industrial Way, Chilliwack, BC V2R 3A4
Listing Price: $30,500,000
Investment Overview
Located at a prominent Highway 1 interchange in the Lower Mainland, Fraser Gateway Centre is a bond-like investment opportunity on 4.46 acres, secured by long-term ground leases with Fairfield by Marriott, Tim Hortons, and Canco Petroleum, and an 8-unit NNN retail strip serving everyday needs tenants. This easily managed property offers a unique opportunity to acquire a newly constructed 102,590 SF centre well below its estimated $43M replacement cost, with the majority of capital investment funded directly by tenants. 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.
82% of net rental income is secured by national covenant operators, with this portion of the income featuring a 19.2 year WALT. Income growth is entirely contractual, approximately 20% over the initial 10 year term, with no leasing risk. Ground lease tenants are responsible for all repair, maintenance, and replacement, and contractual management fees form part of Operating Costs, making this a true hands off investment
Fraser Gateway Centre
Investment Highlights
- BOND-LIKE GROUND LEASE INCOME Three national ground-lease tenants generate 66.09% of NOI with virtually zero landlord responsibilities, delivering highly secure, bond-like income.
- NEW CONSTRUCTION BELOW REPLACEMENT COST Newly built 4.46-acre asset offered well below its estimated $43M replacement cost, with tenant improvements exceeding the purchase price.
- TRANS-CANADA HIGHWAY EXPOSURE Prime exposure along Industrial Way with direct visibility and access to the Trans-Canada Highway (66,975 VPD).
- STRONG NATIONAL COVENANTS Approximately 82% of NOI is secured by national operators including Marriott, Tim Hortons, Canco, and Angry Otter Liquor.
- CONTRACTUAL RENT GROWTH Built-in rent escalations deliver approximately 19% income growth over the initial 10-year term with no leasing risk.
- DIVERSIFIED DAILY-NEEDS TENANCY Service-oriented and necessity-based tenants drive consistent traffic and durable demand across economic cycles.
- FLAGSHIP MARRIOTT HOTEL LEASE 150-room Fairfield by Marriott secured by a 27-year ground lease with strong covenants and lender step-in rights.
- LONG-TERM LEASE PROFILE The Property offers a 16.6-year WALT, supported by long-dated ground leases with major national tenants.
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Listing Price: $30,500,000
Investment Highlights
- BOND-LIKE GROUND LEASE INCOME Three national ground-lease tenants generate 66.09% of NOI with virtually zero landlord responsibilities, delivering highly secure, bond-like income.
- NEW CONSTRUCTION BELOW REPLACEMENT COST Newly built 4.46-acre asset offered well below its estimated $43M replacement cost, with tenant improvements exceeding the purchase price.
- TRANS-CANADA HIGHWAY EXPOSURE Prime exposure along Industrial Way with direct visibility and access to the Trans-Canada Highway (66,975 VPD).
- STRONG NATIONAL COVENANTS Approximately 82% of NOI is secured by national operators including Marriott, Tim Hortons, Canco, and Angry Otter Liquor.
- CONTRACTUAL RENT GROWTH Built-in rent escalations deliver approximately 19% income growth over the initial 10-year term with no leasing risk.
- DIVERSIFIED DAILY-NEEDS TENANCY Service-oriented and necessity-based tenants drive consistent traffic and durable demand across economic cycles.
- FLAGSHIP MARRIOTT HOTEL LEASE 150-room Fairfield by Marriott secured by a 27-year ground lease with strong covenants and lender step-in rights.
- LONG-TERM LEASE PROFILE The Property offers a 16.6-year WALT, supported by long-dated ground leases with major national tenants.
Investment Overview
Located at a prominent Highway 1 interchange in the Lower Mainland, Fraser Gateway Centre is a bond-like investment opportunity on 4.46 acres, secured by long-term ground leases with Fairfield by Marriott, Tim Hortons, and Canco Petroleum, and an 8-unit NNN retail strip serving everyday needs tenants. This easily managed property offers a unique opportunity to acquire a newly constructed 102,590 SF centre well below its estimated $43M replacement cost, with the majority of capital investment funded directly by tenants. 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. 82% of net rental income is secured by national covenant operators, with this portion of the income featuring a 19.2 year WALT. Income growth is entirely contractual, approximately 20% over the initial 10 year term, with no leasing risk. Ground lease tenants are responsible for all repair, maintenance, and replacement, and contractual management fees form part of Operating Costs, making this a true hands off investment
Exclusively Listed By
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