A 179-unit high-rise condominium project in Victoria’s Burnside Gorge neighbourhood is considering shifting to a purpose-built rental model, according to developer Mike Geric Construction.
Construction on the 12-storey Tresah West began in 2020 along the 600-block of Speed Avenue, close to Douglas Street. Despite the challenges posed by COVID-19, the project continued to move forward. However, escalating costs have prompted a possible change from ownership residences to rental apartments, as stated by the company.
Shannon Kowalko, the Director of Marketing and Community Relations for Mike Geric Construction, explained, “Greater Victoria’s construction industry is facing significant cost challenges, with rising material prices and ongoing supply chain issues which pushed our construction budget more than 30% above our prior forecast. This, combined with industry delays leading to increased carrying costs, led us to make a difficult decision on the project’s future.”
”Our team’s priority now is communicating directly with our valued buyers to discuss the situation and confirm that if we move forward with this change they will receive their full deposits back,” Kowalko added.
Currently, the pace of construction has Tresah West on track for completion in early 2025, according to Kowalko. The 179 homes will contribute to a rental market that is significantly under-supplied in Greater Victoria and is located in an area expected to experience considerable densification in the coming years within the City of Victoria and the District of Saanich.
As one of the most active developers on southern Vancouver Island, Mike Geric Construction (MGC) is also developing The Rise on Fifth, a four-storey upscale condominium in Sidney, set for completion by the end of this year. Additionally, MGC has an active proposal for a mixed-use development in James Bay at the intersection of Quebec Street and Montreal Street.
Tresah was originally envisioned by MGC as a two-phase condominium development, delivering a six-storey building in 2023 known as Tresah East, which comprises 68 units.
Initially, Tresah West was planned to be constructed using mass timber technology. However, the costs associated with building a 12-storey structure using that method proved challenging, leading to the decision to use steel as the primary construction material.
