A change in direction for the Kelson Group when it comes to its City Gardens development in downtown Kamloops.

A soft property market at the moment has the Kelson Group re-thinking its position connected to the planned 2nd tower on the site.

“Our initial intentions were to have them sold as strata buildings,” Kelson Group President Jason Fawcett told Radio NL.  “But with a little bit of a slow down in the market, the rental market is quite strong.”

Originally planned as a 20 story tower for strata sale, Fawcett says it makes sense for them to make the 2nd tower a rental property instead, though he does say they intend to keep their options open, depending on market conditions.

He notes construction of the 2nd tower will coincide with the building of a planned, 6 story wood-framed rental building on the site.

“We’re just going to start the construction on them, keep proceeding, and then as we get the first tower built and finished and sold, then we’ll consider what our next plans are for those two buildings,” said Fawcett.  “At this point we’re really thinking that rental makes sense.”

Fawcett says they’re now awaiting final development approvals for the 2nd tower, saying once those come through, they intend to shift the high-tower crane used to create the Trillium Tower over to the site of the 2nd tower.

Fawcett suggests the higher-income level market is who they will likely end up catering the 2nd tower and the new, 37 unit wood-framed building toward.

“With concrete construction and some of the costs… bigger apartments like these town houses in that smaller building, they’re going to be up to 2,000 square feet. So the rents for them will naturally be higher,” said Fawcett.

It comes as the 24 story Trillium Tower has now been topped off, with expectations that building should be complete sometime next summer.

So far, that building is about half sold.