Richmond Pays $70.25M for The Gardens Rentals: What Buyers, Sellers and Investors Need to Know

In August 2025 Richmond City completed a high‑profile acquisition, paying $70.25 million to buy two adjacent properties at 10820 and 10880 No. 5 Road—part of The Gardens community near Steveston Highway and the Gardens Agricultural Park. The seller was the developer team of Townline Homes and Peterson Group, and Peterson has since removed the listing for the buildings from its website.

The larger of the two assets, Camellia at The Gardens (10820 No. 5 Road), is a low‑rise rental building finished in 2015 that contains 163 so‑called “luxury rental” units—studios, one‑bed and two‑bed suites with high‑end finishes, stainless appliances and in‑suite laundry. Nineteen of those units already belonged to the city’s subsidized rental inventory under an existing low‑end market rental program. The neighbouring building, Azalea at The Gardens (10880 No. 5 Road), completed in 2014, includes nearly 19,747 square feet of ground‑floor retail.

BC Assessment values for the two properties were roughly $52.85 million for Camellia and $12.73 million for the retail parcel, a combined assessed value of about $65.58 million. Richmond’s purchase price of $70.25 million was therefore roughly $4.67 million above assessment. When asked about the city’s plans for the properties, municipal officials declined to comment.

This acquisition is part of a broader provincial trend: municipal and provincial housing agencies have been buying existing rental buildings in recent years. Examples include Vancouver’s 2023 purchase of the 46‑unit M4IN building and BC Housing’s 2025 transactions in Mission and Vancouver. Governments are increasingly active buyers of turn‑key rental stock as new construction slows and policy pressure mounts to preserve and expand affordable housing.

Market reports cited by commercial brokers suggest the multifamily sector in BC softened in 2025—driven by rising supply, changes to immigration and student policies, and other localized factors—with activity expected to stabilise rather than surge in 2026. Analysts also note that with new development pipelines contracting, investor attention is shifting to existing buildings, where yield, tenancy stability and redevelopment potential can be evaluated more readily.

For landlords, investors and owners considering a sale, Richmond’s move underscores two realities: municipalities can be strategic, patient buyers and may pay a premium for locations that fit long‑term housing strategies; and policy risk—changes to subsidy programs or zoning—should factor into valuation models. For buyers, competition from public agencies means pricing dynamics can differ from typical private investor markets.

Actionable insight 1: If you own or are buying rental properties in Metro Vancouver, run scenario modelling that includes a potential municipal buyer or policy change. This means stress‑testing cashflows under conservative rent growth and adding a premium scenario for a municipal acquisition when pricing a strategic sale.

Actionable insight 2: Investors should prioritise due diligence on operating statements, vacancy trends and the status of any below‑market units already tied to municipal programs. These items materially affect net operating income and potential conversion or preservation costs if a public buyer acquires the asset.

Actionable insight 3: Sellers should engage a specialist broker familiar with public‑sector transactions. Municipal purchases often involve different timelines, confidentiality expectations and social‑value considerations that experienced advisors can navigate more effectively.

What This Means for BC Buyers, Sellers, and Investors

Real impact: Richmond’s purchase highlights growing municipal intervention in the rental market. Expect more public buyers targeting well‑located, income‑producing assets—particularly those with existing subsidized units or easy access to amenities and transit. This can raise competition for mid‑sized multifamily properties and change exit opportunities for private owners.

Practical advice: For buyers, focus on existing asset quality and stable income rather than speculative upside; secure financing terms that account for slower rent growth. For sellers, weigh the timing of a sale against potential premium offers from municipalities and factor in social and political motivations that might push public buyers to outbid private investors. For landlords, protect cashflow by tightening expense management, documenting tenancy performance, and engaging early with housing authorities if conversions or partnerships are possible.

Bottom line: The Gardens deal is a reminder that in today’s BC market, policy and public buyers can be as important as traditional investor demand. Solid underwriting, policy awareness and the right advisory team are the best defenses and opportunities for anyone active in the province’s rental sector.