Surrey could reap $1M annually with new rental project

Surrey could reap $1 million in revenue from developing a city-owned property in Whalley into rental units.

A report by city manager Rob Costanzo calls for council approval to work with Apcon Group on the design, construction, operation and maintenance of a 430-unit rental building on the city’s land at 10975 – 126A St.

The project would be part of the city’s Affordable Rental Housing Strategy for the development of a purpose-built rental housing development.

In May 2025, the city issued a call for partners in the project and received 12 bids. The city settled on Apcon Group.

According to the report, Apcon is anticipating the following mix of units, with an aim to have 30 per cent of the units to be below-market rentals. Below-market rent are defined as rents at or below 30 per cent of the median total income of all families in the local market.

The project would include:

• 36 studio units (all of which would be below-market rental);
• 26 one-bedroom units (all of which would be below-market rental);
• 298 one-bedroom plus den units (67 of which, or 22%, would be below-market rental, with the remainder at market value); and
• 79 two bedroom and two-bedroom plus den units (all of which would be at market value)

The preliminary development layout also envisions:

• 618 m2 of retail floor area, intended to be utilized for a medical clinic and pharmacy;
• 786 m2 of childcare space;
• enclosed ground level parking as well as one level of below-grade parking, providing vehicular and bicycle parking for residents, visitors, and commercial users; and
• 464 m2 of indoor amenity space is proposed (which would be subject to council approval as part of their future development application) as a measure to reduce operating costs given the immediate proximity to the North Surrey Sport & Ice Complex.

In addition, while the Project Site is not subject to minimum parking requirements per the city’s Zoning Bylawm as it is within the Scott Road Station Transit-Oriented Area, Apcon has indicated that long-term rental viability will require provision of parking for commercial retail, child care, and the rental units.

In total, 389 stalls are proposed, with residential parking provided at a rate of 0.7 stalls per unit, in addition to provision of visitor parking and commercial/childcare parking.

“There are no operating or capital funding requirements of the city as part of this Strategy, and it is expected that the Strategy has the ability to provide a small revenue stream to the City,” said the report.

Apcon has proposed that the city will receive 10 per cent of the gross annual rental revenue once the project is completed and occupied. Based on initial estimates, the equates to approximately $1 million per year beginning in 2029.

In addition to this agreement with the city, Apcon will be solely responsible to prepare and submit a development application to the city and obtain all necessary development approvals required by the city. These approvals may include subdivision, rezoning, development permit, building permit and servicing.

“In addition to facilitating the development of housing by the private sector, the City has the opportunity to deliver housing through an Affordable Rental Housing Strategy which would include the leasing of City-owned land to development partners to design, construct, operate and maintain purpose-built rental housing,” reads the report. “As a first step in this strategy, it is recommended that Council authorize staff to initiate negotiations with Apcon Group on an agreement(s) that will lead to the design, construction, operation and maintenance of a purpose-built rental housing development on City owned land at 10975 126A Street.”