- What Troika aims to complete $1.4bn of new rental projects over the next three years
- Why Canada’s housing crisis presents an opportunity to shift the firm’s focus to rentals
- What next Chief executive Renee Merrifield says developing for-sale condos and rentals is a solid path forward
Troika Developments is betting big on the purpose-built rental sector.
Over the next three years, the Kelowna, B.C.-based developer aims to complete 13 projects in Western Canada, including rentals, and plans more worth a combined $1.4bn. Its latest move is a shift away from condominium development, which had been its focus in recent years, amid the housing crisis in Canada.
“The return to purpose-built rental is kind of a return home,” founder and chief executive Renee Merrifield told Green Street News. “It’s where I started 25 years ago.”
Troika’s most recent deal is the $4.8m purchase in December of a land assembly in Kelowna. The firm plans to turn the part-condominium project, at 465 Dougall Road North, into a rental building, with construction set to begin in the third quarter.
A former member of the Legislative Assembly of British Columbia, Merrifield said helping to solve the housing crisis is part of her motivation.
Representing the Kelowna-Mission district for four years as a member of the B.C. United party, she learned some lessons about the housing situation in her province.
“Government doesn’t understand housing,” she chuckled. “It’s not about standing around wondering why it’s getting more expensive.”
Instead, she said, her company’s overall philosophy has a dual focus that Merrifield refers to as “two pedals on the bike.” This means being involved in a combination of for-sale units plus rental homes.
Such a strategy allows Troika to adapt to market cycles while keeping its commitment to building quality homes, she said.
In keeping with that, Troika seeks out properties with strong development potential for mixed-use communities, including purpose-built rentals.
It’s been a tough slog for B.C. developers to find ways to make their projects work under current market conditions, such as dried-up pre-sales and the CMHC signaling changes to its programs.
In Vancouver, numerous court-ordered sales have hit the block. But, as 2025 gets started, Merrifield is optimistic.
“It’ll be interesting to see where things go, but largely Canada still needs housing,” she said. “There’s still going to be an opportunity for developers who can find that window of circumstances that work for them.”
The company is particular about who it works with, hoping to achieve a shared vision for developments. After all, “troika” is a Slavic word meaning a team of horses pulling together.
“We’re really excited that we have like-minded partners,” Merrifield said. “These are partners that are committed to that long capital that it takes for rental buildings to actually be profitable.”
Current partners include Unicare Homes, a retirement-community company with which Troika is constructing purpose-built rentals in Kelowna.
Merrifield said the company is an example of the sort of partnerships her company seeks out.
Last week, Troika announced that the company and CorWest Builders, a construction firm also started by Merrifield, are folding into one company under the Troika name.
Clarification: Story updated Jan. 20, 2025, to clarify the number of Troika’s projects.
