We are pleased to share the success of one of our recent dispositions on behalf of the Limited Partnership at 685 Finns Road in Kelowna.
May 20, 2025
Vedderbrook Properties is pleased to share the success of one of our recent dispositions on behalf of the Limited Partnership at 685 Finns Road in Kelowna. We’re extremely pleased with the outcome and grateful for the support that made it possible.
When we first acquired the property, the market was still experiencing upward momentum, and interest rates remained near record lows. However, over the course of the project, we witnessed a dramatic shift. Interest rates surged more than 800% from their 2022 lows, significantly tightening the lending landscape. At the same time, construction costs soared to unprecedented levels, and the real estate market slowed as investor activity declined.
Today’s lending environment has put downward pressure on pricing for income-generating assets, with lenders imposing stricter requirements. In many secondary markets, cap rates have risen by over 35%, driven largely by challenges in securing financing as most Schedule 1 banks now maintain a prime rate between 4.75% and 5.0%.
Despite these headwinds, we achieved a strong sale price and delivered solid returns to our limited partners. We sincerely thank all of you for your continued trust and support.
685 Finns Road
685 Finns Road is a two-storey 9,584 SQFT industrial building located on a 0.37 acre site. This fully leased property has undergone upgrades to the exterior of the building, parking lot, and interior demisal work. Located in one of the city’s highly desired industrial corridors just off of Highway 97, the property offers convenient access to all parts of Kelowna and the Central Okanagan.
