By this time next year Vancouver-based Denciti Development Corp. expects to be leasing its latest purpose-built rental project in Esquimalt. 

The Victoria-area building called Anchor will add 135 rental homes at 829 Old Esquimalt Rd. The six-level building (which drops down to four levels facing Esquimalt Road) is the product of a favourable coincidence, said David Fawley, co-founder and principal with Denciti. 

His team had been looking at development sites in B.C.'s capital region roughly four years ago. While in town on a business trip, Fawley took a drive down Old Esquimalt Road. “As we drove along the main (road), the old bingo hall caught my eye.”

He made a note of the site and intended to check in with the firm's broker about potentially pursuing it. Before that could happen, the broker called him about the property as it had become available in a non-market sale. “Serendipity,” Fawley said. 

Anchor received approval from Esquimalt council in late 2023 and broke ground in March 2024. The province has identified Esquimalt as one of 20 municipalities required to meet new housing targets under the Housing Supply Act, citing urgent need and projected growth. Esquimalt was assigned a target of 754 new homes over five years.

Anchor location offers "key ideals" for rental use 

Anchor, named to honour the naval heritage of the area, will deliver a mix of one-, two-, and three-bedroom homes, along with two ground-floor live-work units fronting Esquimalt Road. These flexible spaces are designed to support small or home-based businesses such as therapists, hairdressers, or artists.

The building also offers 199 bike parking stalls.

Fawley said Denciti had initially considered the site for a condo development, but research on the neighbourhood led the firm to develop it as rental.

Located right on the border with Victoria West, Fawley said it has walkability, strong connections to transit and easy access to downtown Victoria. "We just thought this had some of the key ideals (for rental)."

Anchor is located close to CFB Esquimalt, the largest military base in the province employing approximately 6,500 military personnel and civilians. The base is set to expand over the next 10 to 15 years under the federal National Shipbuilding Strategy.

The building’s proximity to both the base and Seaspan’s shipbuilding operations brings certainty to the market that there will always be a need for housing in the community. He said the comfortable local lifestyle, as well as a cooperative city council means developing projects in the area comes with a sense of confidence and clarity.

Denciti develops other Capital Region projects

Meanwhile, Denciti is working on the Spencer Block in partnership with site owner Nicola Wealth Real Estate (NWRE).

Located at 610 Herald St. in downtown Victoria, the mixed-use building has 278 rental apartments as well as commercial units at street level. Denciti is serving as development manager and NWRE will operate the building once it completes, Fawley said.

The building, which is now under construction, is located at a busy, well-amenitized part of downtown Victoria. 

Additionally, Denciti is ready to activate a mixed-use condo project in Esquimalt once pre-sale condo conditions improve. Fawley said 1000 Craigflower is a planned six-storey, 134-unit building with 12,000 square feet of commercial space on the street level. 

"We are ready to launch as soon as market conditions improve," Fawley said. "The permits are ready, the presentation centre is ready; all the marketing collaterals are ready... We're ready to respond as soon as the market swings back into people buying pre-sales."

Condo vs. rental development

Fawley said the decision to build condo versus rental today continues to be a simple choice as the condo pre-sale market in the Victoria region struggles like every other condo market in Canada. It boils down to two issues, he said.

“There's a high level of uncertainty in the world, not just in the country, but also the capital region, (and) there's also a lot of cost pressures," Fawley said, adding the complexity of building homes in Canada is as challenging as he has seen in his 35 years in the industry.

He said the market is facing a strange paradox in which the CMHC continues to warn that not enough new homes are being built to match future demand, while developers continue to halt, delay or convert condo housing projects due to sluggish sales. 

"I think the solution really lies in collaboration," he said. "That is every level of government working with the real estate industry to support community building. We can resolve some of these issues."