Construction of the Alyssium Tower as of January 24, 2025. (Image Credit: Kent Simmonds / CFJC Today)

By Dylana Kneeshaw

CITY GARDENS PROJECT

Plans pivot to rental apartments for new Alyssium Tower in downtown Kamloops

Jan 24, 2025 | 4:43 PM

KAMLOOPS — The company behind a large development project in the city’s downtown core says the next building to go up will focus on rental units.

The Kelson Group says the next apartment tower in the City Gardens project is already under construction. Originally, the plan for the second tower was to have units for sale, but Kelson Group President Jason Fawcett says the local market has strong rental demand.

“The Trillium Tower is for sale. It’s a condominium building and that’s originally what we thought we’d do with that second tower, but with a few changes in the market and a few incentives that are a little bit different from the government, we believe rentals are the way to go, and we’re going to build the biggest and premium rental building with the Alyssium Tower,” says Fawcett.

The City Gardens project already has a 10-year tax exemption as part of a City of Kamloops revitalization program, but there is also a federal GST exemption for purpose-built rental housing. The new 20-storey tower will bring around 136 apartments to the city’s downtown and is expected to open in two year’s time.

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“The vacancy rate in this city has for the last 10-to-15 years has been two per cent or lower, and rents have been rising and, as a result, there’s a good demand for new supply,” adds Fawcett.