- What Lightwell is raising equity for four LP multiplex projects in Vancouver
- Why Lightwell develops lower-priced homes in sought-after neighborhoods
- What next The developer now is raising $13m in equity
Multiplex developer Lightwell Homes is raising equity for four limited-partnership multiplex projects in Vancouver projected to be worth a combined $72.2m when completed, Green Street News can reveal.
Advantage Capital Group has been a financing partner in arranging and providing land acquisition and construction financing for Lightwell Homes. The developer now is raising $13m in equity for the four projects: Lightwell III LP, Lightwell IV LP, Lightwell V LP and Lightwell VI LP.
Lightwell III LP is seeking $3.3m in equity out of $4.1m in total equity required. The closing date for fundraising is Aug. 20, and the completion date is estimated to be in December 2026.
The plan calls for two multiplexes: a five-unit building at 481 West 17th Avenue and a six-unit building at 6891 Laurel Street. After they’re sold, the development is projected to be valued at $18.6m, with a return on equity of 57%.
Lightwell IV LP is seeking $3.7m in equity out of the $4m in total equity required. The closing dates for fundraising are April 30 and Oct. 27, and the completion date is estimated to be in February 2027.
Lightwell IV also comprises two buildings. A six-unit multiplex is slated for 3357 West 26th Avenue, and 481 West 21st Avenue will have a four-unit building. The development is projected to be valued at $17.3m once completed, with a return on equity of 48%.
For Lightwell V LP, equity available to investors is $2m out of the $4.1m in total equity required. The closing date is Nov. 24, and the completion date is estimated to be in February 2027.
The Lightwell V LP will fund two buildings, one at 2408 West 22nd Avenue and the other at 1314 West 57th Avenue, which will have four units and six units, respectively. The development is expected to have a valuation of $18.7m once completed, with a return on equity of 55%.
For the final project, called Lightwell VI LP, equity available to investors amounts to $4m, which is the total of the equity required. The closing dates are set for July 30 and Nov. 24, and the completion date is estimated to be in March 2027.
Lightwell VI will comprise two multiplex buildings. The first, at 557 East 20th Avenue, will have four units. Lightwell is negotiating the purchase of the second property. The development is projected to be valued at $17.6m once completed, with a return on equity of 58%.
Lightwell Homes strategically prioritizes the development of lower-priced homes in sought-after neighborhoods in Vancouver. The firm typically builds in the four- to six-unit range.
The company has 14 projects on the go, 11 on the west side and three on the east side.
The City of Vancouver and the provincial government are mandating higher density to boost the housing supply, adding “missing middle” housing in low-density neighbourhoods.
During the 12-month period ending April 1, 2024, British Columbia saw its biggest annual population increase in over 60 years. The number of people grew by approximately 180,000, resulting in an annual growth rate of 3.3%. That helped bring Vancouver’s home affordability to a historic low.
