Ever Wonder How Your Kelowna Property Came To Be?

I came across this great article written by Andrew Bruce, Kelowna Regional Manager, Melcor Developments & BlueSky at Black Mountain www.blueskyatblackmountain.ca and current president of the Urban Development Institute Okanagan Chapter that I believe is worth sharing!

So truly, this week’s BLOG is written by one of the most knowledgeable developers in Kelowna.  Enjoy!

“By the time you get to choose a particular building lot or a new home built in a new subdivision, years of work have already gone into the creation of that individual property. I have always told people that land development is not rocket science – but it does involve a significant amount of risk, dedication of a lot of capital (i.e. money, money, money) and time.

So when my company, Melcor Developments Ltd. which is a public company, reports its financial returns and indicates net revenues in the millions of dollars, it is important to realise that it took many, many more millions of dollars in capital investment to realise that net revenue, and, in most cases, a significant amount of time to get to the end product.

To put this in perspective, I like to use the analogy of a corner store retailer. They too have had to invest in a property and improvements and staff etc. However, they most likely make the same percentage of net revenue on a $2.99 bag of nachos as a land developer does on a single family lot. The corner store retailer, however, probably gets 30 days to pay for the product after he gets delivery. So if he sells his nacho inventory within 30 days (and for us nachos consumers, let’s hope he does!), he has realised his revenue before he has to pay for the inventory.

On the other hand, a land developer has had to pay for, or finance, all of the costs that go into creating the single lot before he can market it to the public. He also has to hope that the lot that he planned to create maybe 2, 3, 5 or 10 years earlier is still what the market demands by the time it is ready to sell. This combination of capital commitment (i.e. when a developer has to spend the cash), duration of the development process, and forecasting of market demand comprises most of what is called the risk factor of development. The other significant component of risk is the regulatory approval.  All land and building development must adhere to the local, provincial and sometimes federal regulatory processes. Some projects are relatively straight forward and have a low risk of not being approved, while others are extremely complicated and require political approval and have a heightened level of risk.

This description of how our industry is structured is not intended to be a complaint – it is simply a description of the facts. I have been involved with the development industry since 1992 when, fresh out of university, I started working in the Planning Department with the City of Kelowna. After 14 years at the City, I moved over to the private sector and have worked as a consultant as well as directly for development companies. I have been on the local Urban Development Institute board for the last six years and will take my turn as president next year.

Most of my colleagues in the development industry would share a similarly long track record.  So why do we do it if we face such a challenging business structure? Land and Real Estate Development builds our communities. By doing what we do, we have taken on the responsibility of provide the best homes, businesses, parks and infrastructure that we can within market limitations. It is our privilege to create the best communities we can for current and future generations”.


Kelowna Developers Build Beautiful Communities!

Melcor Developments Ltd. has created BlueSky at Black Mountain, www.facebook.com/blueskyatblackmountain  an exciting development with a great selection of single family lots, duplex lots and a new townhouse project.  They truly are “In the Middle of Everywhere” closer to everything – shops, schools, UBCO, the airport, Big White and many other community amenities.

BlueSky neighborhood homes offer incredible panoramic vistas including Okanagan Lake, City of Kelowna, golf club, majestic hills and mountains with single family lot prices from just $205,000 and executive townhomes from $400,000.  Watch the sun set over the City and Okanagan Lake from one of the highest lots in the entire city!

From BlueSky you can see many of the other amazing communities such as Dilworth Mountain, Wilden, Tower Ranch, Kirschner Mountain, Solterra Ranch, and Quail Ridge, to name a few.

Each of these communities has special features that distinguish themselves from the crowd.  Wilden boasts a great showhome parade that is open almost daily, Tower Ranch encourages personalization by the homeowner to guide you through the building process, Kirschner Mountain loves to tour visitors around its many sides and layers, and Dilworth Mountain has a 20 home neighborhood at the very top of Dilworth Mountain Estates.

I would recommend a visit to all of these communities when looking for a Kelowna property because I love it here.  That is why “Kelowna is My Home.

NEW Executive Townhomes Add Dimension to BlueSky at Black Mountain

kelowna property at stockley st and black mountain driveFORE at BlueSky at Black Mountain

As the summer sun heats up in the Okanagan Valley, visitors and tourists from all over the world come to enjoy the beauty of the region. Taking in the breathtaking views of the lake, savoring the delectable food and wine of the season and improving their golf game on world-class courses, visitors are blown away by the diversity that Kelowna and the Okanagan has to offer. But, what would it be like to be a year-round resident? As a result of new developments being built and a variety of home options available, transitioning from a visitor to a resident is easily achieved.

Since 1923, Melcor Developments has been acquiring select properties and planning communities in Western Canada and the US. One of our unique current developments we are highlighting is the BlueSky Community at Black Mountain situated in beautiful Kelowna, BC. Known for its unobstructed views of Okanagan Lake, award-winning golf club and family-friendly community BlueSky is quickly becoming an up-and-coming neighborhood for home buyers in all walks of life.

Most recently, the BlueSky community has begun construction on the newest portion of the development. “FORE” is the name of the 4-unit executive townhomes being created at 840 Stockley St. in the Fairways neighborhood. Situated just up from Lund Park, these townhomes boast of over 2100 ft2 living space, high-end finishing’s and a great view of the golf course. These 2-level masterfully crafted units are unlike other townhomes as they combine luxurious finishes and the latest in efficient amenities with unique community living both in BlueSky and the city of Kelowna. Units also feature a double-car garage and wrap-around patios to take in the views of the valley. Working together with our builders, owners can customize features to their tastes, personalizing their own unit. Priced at $399,900 plus tax, these move-in-ready executive townhomes are priced to sell.
Purchasing a unit in FORE will grant residents access to the award-winning Black Mountain golf club, Birkdale Park (a family-friendly park used also to host community events), great series of walking trails, beautiful views of the valley and of course, situate residents a mere 20 minutes from Okanagan Lake, 15 minutes from Kelowna’s International Airport and 40 minutes from Internationally acclaimed Big White Ski Resort. Year-round, the BlueSky community has something unique to offer its residents, making the transition from tourist to resident only natural!

Be sure to visit our sales centre or contact us directly to discover more about becoming a resident at FORE as construction is currently underway. Your Okanagan life awaits you!