A Kelowna real estate group estimates the land of the now-closed Tolko mill is worth nearly $50 million.
MCL Real Estate Group, a subsidiary of RE/MAX Kelowna, believes the 39.68 acres of prime industrial land left behind in the mill’s closure on Jan. 8, 2020, will see the price skyrocket if it becomes ready to be developed.
This is despite BC Assessment’s valuation of the Tolko lands at $19.1 million.
“Once this land becomes available and hits the market there should be a ripple effect throughout the industrial market. Unfortunately, the realization of the Tolko Lands becoming available is more of a longer-term proposition,” said Ken McLaughlin a senior partner and commercial specialist with the MCL Real Estate Group in a year-end report.
“The current mill will need to be decommissioned, and some of the land will require extensive remediation. But once complete, this large piece of industrial land will see its value rise.
“Based on average price per acre for other I4 zoned lands in downtown Kelowna’s north end, a more realistic value for the land is closer to $48,000,000”
The report also states there will be pressure for more non-industrial uses in this area of Kelowna.
“Time will tell what the eventual redevelopment of the Tolko lands looks like, but when it happens it will be an interesting time in Kelowna’s industrial market,” said McLaughlin.