The purchase price exceeded the property’s appraised value of just under $3.3 million by more than $4 million.
The state purchased nearly half an acre of land on Harriet Road for $7.5 million as the final transportation exchange facility in the Uptown Douglas area.
The long pie-shaped 0.45-acre property is currently used by Budget Car Rental.
The Department of Transportation said it was purchased on Jan. 31 as part of a land rally to support the region’s future transportation needs.
The purchase price was more than $4 million more than the appraised value of the property at 3657 Harriet Street, which was just under $3.3 million.
“As with any real estate transaction, the negotiated purchase price represents fair market value at the time of purchase,” Department of Transportation and Infrastructure officials said in a statement.
“Valuations from BC rating agencies reflect a snapshot in time and do not necessarily reflect current market conditions.”
The latest BC valuation values reflect the 2023 valuation.
A spokesperson said an independent evaluation was conducted to ensure the best value for taxpayers, as is standard practice when the province purchases land, and that the province and BC Transportation Authority already He pointed out that he owned part of the land.
Plans for the area are in the early stages, he said. The Uptown exchange is one of nine regional transit exchanges BC Transit is planning.
“As this land construction plan is a work in progress, we are unable to provide further details until further along in the process,” officials said.
Uptown Shopping Center is one of 130 British Columbians designated as a transit-oriented development area by the Ministry of Housing in December as part of the province’s efforts to encourage housing construction to alleviate the affordable housing shortage. It is one of the premises of
Transit-oriented development refers to complete communities built near transportation hubs, such as bus transfer stations, to maximize the amount of residential, business and leisure space close to public transportation, department officials said. Stated.
The goal is to encourage people to use transit instead of relying solely on their own cars.
B.C. Transportation officials say the Uptown-Douglas transit exchange is an important part of the Victoria region’s transportation plan, including the future Mackenzie Rapid Bus Line and Peninsula Rapid Bus Line connecting Uptown and the University of Victoria. He said this will lead to improved regional connectivity of services. .
Ross Marshall, senior vice president of CBRE Ltd.’s investment property group in Victoria, who was not involved in the sale, said the sale price of a property does not necessarily reflect the current use of the land. Stated.
Marshall said the price could reflect zoning that allows for higher density than what’s currently in use.
Marshall said there is no need to rezone a property to increase its value. If potential uses for the land are identified, or if area plans or official community plans are amended to allow for more density, that could all have an impact.
“Then you’re attracting a different kind of buyer. You’re attracting a buyer who might maximize the density allowed based on what the zoning or area plan says. It’s simply a function of the total density that the developer expects to be able to build.”
cjwilson@timescolonist.com
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