Exclusive Offering — Salmon Arm, BC

The Shuswap’s Only Federally-Inspected
Processing Facility

20,000 SF turnkey facility + 3 acres of adjacent M-1 industrial land at 55% below Kelowna pricing. Available individually or as a combined 5-acre assembly for food processors, developers, and investors seeking 15%+ cash-on-cash returns.

TL;DR
CFIA-inspected processing facility on 2 acres + 3 acres of adjacent industrial land in Salmon Arm, BC. Projected 15.2% cash-on-cash return with development upside to $12.5M. Three buyer plays: operate, develop, or bundle.
$2,600,000
4141 — Processing Facility
$1,200,000
5100 — Industrial Land
$3,800,000
Combined Assembly
20,742 SF
Building Area
5.0 AC
Total Land
$125/SF
Facility Ask
$400K/AC
Land Ask
10.1%
Yield on Cost
Stuart Wallensteen
Listed by Stuart Wallensteen, The Cash Flow Agent — Stonehaus Realty
BC Interior industrial specialist  ·  604-369-7304  ·  stuart@thecashflowagent.com
Active Listing
📈 Multiple inquiries received
📅 Showings available by appointment
⚡ Priced to move — 55% below Kelowna industrial

Three ways to win on this deal.

60-Second Drone Flyover

Full aerial tour of the 5-acre industrial campus — processing facility, adjacent land parcel, road access, and surrounding context.

Walk the facility from anywhere.

Full iGUIDE 3D tour of the 20,742 SF processing facility. Explore every room, loading dock, coolers, production areas, and office space.

Three Ways to Win on This Deal

The building sells as the operating / cash-flow asset. The bare land sells as the development upside. Together, the assembly creates optionality for investors, owner-users, and developers.

$

Cash Flow Investor

The facility at $125/SF is a financeable operating asset. At a $16/SF NNN lease, it generates a 2.11x DSCR and 15.2% cash-on-cash return — with a breakeven rent of just $9.09/SF. Purpose-built cold-chain infrastructure commands a premium from the right tenant.

Developer / Land Buyer

The 3.0-acre M-1 parcel at $400K/acre is priced 55–80% below Kamloops and Kelowna industrial land. Municipal gas and water are in place. No ALR restrictions. Three viable end games: open storage yard, industrial strata, or build-to-suit warehouse.

Full Assembly Play

At $3.8M combined, a buyer gets a 5.0-acre industrial campus with an existing 20,742 SF facility and room to expand. The building provides day-one income while the land offers future density. Best for buyers who want optionality without paying a premium.

Ready to see the numbers? The full investment package includes pro formas for all three scenarios.

Get the Full Package → Talk to an Agent

4141 54 Street SE

Specialized industrial / processing facility — formerly "Rocana Meats LTD.", a federally inspected pork processing & packing facility. 20,742 SF on 2.0 acres, zoned M-4 Abattoir.

$2,600,000

~$125/SF  ·  M-4 Abattoir Zone  ·  2.0 Acres  ·  PID 026-312-361
Cash Flow Asset

Building History

2006
Original Building — 15,000 SF

Main building constructed with barn, slaughter house, cutting floor, coolers, freezers, and loading bay. Federally inspected processing facility.

2017
Addition — 6,000 SF

Second building added with full permits by a local professional builder. Purpose-built sausage kitchen and food processing. Owner invested $100K+ upgrading electrical power lines.

Today
Fully Vacant — Move-In Ready

Buyer controls tenant selection. Cold-chain infrastructure in place. Municipal gas & water connected. Septic system designed by Poing One Engineering with Ministry permit.

20,742
Total SF
19,706
Leasable SF
$283,766
Projected NOI
2.11x
DSCR
15.2%
Cash-on-Cash

As-Is Lease-Up (NNN)

Net Rent ($/SF/yr) $16.00
Occupancy Assumption 90%
Gross Potential Rent $315,296
Less: Vacancy ($31,530)
Net Operating Income $283,766
Yield on Cost 10.12%
Breakeven Rent (1.20x DSCR) $9.09/SF

Financing Illustration

Loan-to-Value 65%
Interest Rate 5.50%
Amortization 25 years
Loan Amount $1,823,250
Equity Required $981,750
Annual Debt Service $134,356
Annual Cash Flow $149,410

Acquisition Cost

Purchase Price $2,600,000
Phase I ESA Allowance $25,000
Septic Compliance $150,000
Closing Costs (~1.2%) $30,000
Total Project Cost (As-Is) $2,805,000

Key Features

  • Purpose-built processing facility — barn, kill floor, cutting floor, cold storage
  • Loading dock with refrigerated truck access (Thermo King compatible)
  • Walk-in coolers and freezers in place
  • 2017 addition: 6,000 SF sausage kitchen + food processing
  • $100K+ electrical power line upgrade by current owner
  • Municipal gas & water connected
  • Septic system with Ministry of Environment permit
  • 100% NNN lease structure — tenant pays all OpEx, taxes, insurance
  • Fully vacant = buyer controls tenant selection

Floor Plan — Main Floor (20,128 SF Exterior / 19,627 SF Interior)

iGUIDE-measured floor plan prepared 2022/10/03. Two-storey structure with main processing on ground level and mezzanine meat plant (1,210 SF) above.

4141 54 St SE - Main Floor Plan with room dimensions

Main Floor — Interior Area 19,627 SF

4141 54 St SE - Building Overview with both floors

Full Building Overview — Main + Top Floor Mezzanine (1,210 SF)

Production Area
2,742 SF + 1,064 SF
Commercial Bays
Multiple units — 370 to 1,833 SF each
Loading Dock
851 SF (44'9" x 19'8")
Storage Areas
354 SF + 364 SF
Offices
Multiple — 85 to 153 SF each
Staff / Break Areas
317 SF + 255 SF
Electrical Room
247 SF (upgraded 2017)
Lobby / Entry
348 SF
Top Floor Meat Plant
1,210 SF mezzanine
Utility / Mechanical
249 SF + 61 SF

Convert / Reposition Scenario

$500K
Capex
$17.50/SF
Post-Reno Rent
$317,267
Convert NOI
$3,732,548
Implied Exit Value

Property Tax History — 4141 54 St SE

YearRoll NumberTax Levy
202201016.066$28,504.27
202101016.066$30,592.87
202001016.066$25,156.49
201901016.066$30,586.98
201801016.066$35,945.53

5100 40 Avenue SE

3.0-acre industrial land parcel with multiple end games. Currently bare land — previously used as septic field for the adjacent 4141 facility. Adjacent and accessible, with municipal gas & water in place.

$1,200,000

$400,000/Acre  ·  M-1 General Industrial  ·  3.0 Acres  ·  PID 024-909-335
Development Upside
3.0 AC
Site Area
M-1
Zoning
$400K
Per Acre
55-80%
Below Kelowna/Kamloops

Value Proposition

  • Expansion land adjacent to ~20,742 SF processing facility
  • M-1 zoning: wide range of industrial / service uses
  • Municipal gas & water serviced — lower development costs
  • Not in ALR — no Agricultural Land Reserve restrictions
  • OCP designation: Industrial General
  • City OCP supports industrial expansion; 5-year tax exemption
  • Zest Food Hub waiting list confirms unmet demand
  • Priced 55–80% below Kamloops and Kelowna industrial land

Comparable Land Values

This Property (Salmon Arm) $400,000/acre
Kelowna Industrial $1.4M – $2.3M/acre
Kamloops (Iron Mask) $909K – $1.0M/acre

Sources: HM Commercial 2025, public records.

Property Tax History — 5100 40 Ave SE

YearRoll NumberLevy
202201016.050$7,948.08
202101016.050$6,089.38
202001016.050$5,008.48
201901016.050$5,508.73
201801016.050$5,237.93

Illustrative Build-to-Suit Scenario

15,000 SF
Buildable Area
$175/SF
Construction Cost
$3,825,000
All-In (Land + Build)
$216,000
Projected NOI
5.65%
Yield on Cost

Three Paths Forward

Scenario 01

Open Storage / Contractor Yard

Lowest capital outlay and fastest route to income. Grading, gravel, drainage, fencing, gate, lighting, and small office / security component.

Indicative Cost (excl. land) $650K – $850K
Income Angle Yard / Outdoor Storage
Scenario 02

Industrial Strata

Best pure developer margin if the market supports small-bay owner-user demand. ~30,000 SF of smaller industrial bays with parking and servicing.

Indicative Cost (excl. land) $8.4M – $9.4M
Indicative Sellout Range $11.5M – $12.5M
Scenario 03

Build-to-Suit Warehouse

Most straightforward institutional narrative for a single user or a developer chasing a pre-lease / built-for-purpose exit.

Indicative Cost (excl. land) $6.3M – $7.3M
Stabilized Value $7.8M – $8.8M

Zoning, Entitlements & What You Can Build

The numbers behind the development scenarios. Both parcels sit in the City of Salmon Arm’s Industrial General OCP designation with supportive city policy and no ALR restrictions.

4141 — M-4 Abattoir Zone

0.60
Max FAR
15m
Max Height
7.5m
Front Setback
3.0m
Side/Rear Setback

M-4 permits abattoirs, meat processing, rendering, cold storage, and ancillary industrial uses. Existing 20,742 SF building sits well within FAR limits. Rezoning to M-1 is straightforward if the buyer intends to reposition for general industrial use.

5100 — M-1 General Industrial Zone

0.60
Max FAR
15m
Max Height
7.5m
Front Setback
3.0m
Side/Rear Setback

M-1 is the broadest industrial zone — permits warehousing, manufacturing, contractor yards, industrial strata, distribution, and service commercial. At 3.0 acres (130,680 SF), max buildable area under 0.60 FAR is ~78,000 SF before parking and servicing.

Development Pro Forma Summary

Scenario All-In Cost Buildable SF Projected NOI / Sellout Yield on Cost / Margin Timeline
Contractor Yard $1.85M–$2.05M N/A (open storage) $120K–$180K NOI 6.5%–8.8% 3–6 months
Industrial Strata $9.6M–$10.6M ~30,000 SF $11.5M–$12.5M sellout 18%–20% margin 18–24 months
Build-to-Suit $7.5M–$8.5M ~15,000–20,000 SF $216K NOI (stabilized) 5.65% yield on cost 12–18 months
Convert Facility (4141 only) $3.1M ($2.6M + $500K capex) 19,706 SF (existing) $317K NOI / $3.73M exit 10.2% yield on cost 6–9 months

Entitlement Timeline & Costs

Development Permit8–12 weeks (Salmon Arm)
Building Permit6–10 weeks
DCCs (Development Cost Charges)Contact City for current rates
Heritage OverlayNone
ALR RestrictionNot in ALR
EnvironmentalPhase I ESA on file (4141)
Septic Constraint (5100)<0.5 acre former septic field

Comparable Industrial Strata Sales

Kelowna industrial strata$280–$400/SF
Kamloops industrial strata$200–$300/SF
Salmon Arm (projected)$200–$250/SF
BC Interior industrial lease rates$14–$18/SF NNN (trending up)
Salmon Arm lease rate target$14.40–$17.50/SF NNN

Strata pricing conservative to Kelowna/Kamloops. Lease rates based on pro forma modeling + regional benchmarks.

Why This Is Underpriced

How these assets stack up against active and recent industrial listings in the BC Interior.

PropertyPriceSize (SF)$/SFLotNotes
4141 54 St SE (Your Facility)$2,600,00020,742$1252.0 acM-4 Abattoir, cold-chain ready
5100 40 Ave SE (Your Land)$1,200,000$400K/ac3.0 acM-1 Industrial, serviced
56 Hadow Rd, Enderby$2,600,00031,940$8139.8 acCourt sale, ALR, ex-cannabis
3101 10 Ave SW, SA$4,500,0009,704$4644.0 acRetail, C-3, single tenant
351-391 Hudson, SA$4,500,00026,725$1680.56 acOffice, C-2, 79% leased
Kelowna IndustrialVariousVarious$299–$410VariousHM Commercial Apr 2025
Kamloops IndustrialVariousVarious$177–$215VariousLoopNet active listings

vs. 56 Hadow Rd, Enderby ($81/SF)

  • Proper M-4/M-1 industrial zoning vs. ALR land with severe use restrictions
  • Municipal gas & water vs. rural site with limited services
  • Salmon Arm market (21,000 pop) vs. Enderby (3,000) — larger tenant pool
  • Arms-length sale vs. court-appointed receivership — cleaner transaction
  • No cannabis facility stigma — purpose-built for food processing

vs. 3101 10 Ave SW, Salmon Arm ($464/SF)

  • 2x the building area at 58% less total price — dramatically better $/SF
  • Industrial facility with cold-chain infrastructure vs. retail building
  • Comparable lot size (~2–4 acres) at a fraction of the cost

vs. 351-391 Hudson St, SA ($168/SF)

  • 25% lower price per SF ($125 vs. $168) for industrial vs. office
  • Industrial / food processing demand stronger than office in secondary markets
  • 100% NNN lease structure vs. multi-tenant office management burden
  • Fully vacant = buyer controls tenant selection; no inherited lease risk

vs. Kelowna & Kamloops Industrial

  • Land priced 55–80% below Kelowna industrial ($1.4M–$2.3M/acre)
  • Land priced below Kamloops Iron Mask ($909K–$1.0M/acre)
  • Lower Mainland pricing driving industrial users to BC Interior markets
  • Salmon Arm benefits from same Shuswap agriculture base with less competition

See how this stacks up in detail — download the full competitive analysis

Why Salmon Arm Is Outperforming Kelowna & Kamloops

This isn't speculative. The region's food and beverage manufacturing sector is growing, and the infrastructure to support it hasn't kept up.

Zest Food Hub

Opened 2021, fully occupied, active waiting list — proven unmet demand for food processing space in the Shuswap.

Sector Concentration

Shuswap/Thompson Okanagan = 16% of BC food & beverage manufacturing. This region punches above its weight.

Employment Growth

Food/beverage manufacturing employment runs 3x the Canadian national average in this corridor.

Agricultural Base

100+ farms in city limits, 200+ in the immediate region, 600+ in the broader Shuswap. The raw material is here.

City Policy Tailwind

New OCP (Dec 2025) supports industrial expansion. 5-year tax exemption available for qualifying industrial uses.

Regional Migration

Lower Mainland pricing is driving industrial users to BC Interior markets. Salmon Arm is on the receiving end of that capital flow.

Sensitivity Analysis & Return Projections

Stress-tested underwriting across vacancy, interest rate, and hold period scenarios. Base case uses the facility pro forma assumptions: $14.40/SF NNN, 5% vacancy, 5.75% rate, 65% LTV.

Vacancy Sensitivity — 4141 Facility ($2.6M)

Vacancy RateEffective Gross IncomeNOIDSCRCash-on-Cash
0% (Owner-Occupied)$297,648$297,6482.21x16.8%
5% (Base Case)$283,766$283,7662.11x15.2%
10%$267,883$267,8831.99x13.4%
15%$252,001$252,0011.87x11.5%
20%$238,118$238,1181.77x9.8%
30%$208,354$208,3541.55x6.2%
50% (Worst Case)$148,824$148,8241.11x0.8%

Even at 20% vacancy, the facility delivers a 1.77x DSCR and nearly 10% cash-on-cash — well above breakeven. Debt service is covered at up to ~48% vacancy.

Interest Rate Sensitivity — 4141 Facility

Interest RateAnnual Debt ServiceDSCRCash-on-Cash
4.75%$118,4162.40x18.2%
5.25%$125,8922.25x17.4%
5.75% (Base Case)$134,4722.11x15.2%
6.25%$143,0521.98x15.5%
6.75%$151,9321.87x14.5%
7.00%$156,4681.81x14.0%
7.50%$165,6361.71x13.0%

The deal maintains strong coverage even at 7.50%. Rate sensitivity is manageable because of the low LTV (65%) and strong NOI relative to debt service.

Hold Period & Exit Projections — 4141 Facility

Hold PeriodExit Cap RateProjected Exit ValueTotal ReturnEquity MultipleAnnualized IRR
3 Years8.5%$3,338,424$1,589,7221.75x20.4%
5 Years8.0%$3,547,075$2,827,0802.11x16.1%
7 Years7.5%$3,783,547$4,117,1092.53x14.2%
10 Years7.0%$4,053,800$5,891,4603.08x11.9%

Assumes 2% annual rent escalation, base case vacancy, and cap rate compression over hold period. Exit values based on forward NOI at projected cap rate. All returns calculated on initial equity of $910,000 (35% down on $2.6M). Full underwriting in the investment package.

Download Full Underwriting Package →

The Whole Campus for $3.8M — Here's Why the Math Works

The building is the operating story. The land is the upside story. Together, the package gives buyers more than one way to win. The current owners prioritize buyers who can purchase both properties.

$3,800,000
Combined Price
5.0 Acres
Total Assembly
20,742 SF
Existing Building
$283,766
Day-One NOI
1.47x
DSCR (Bundle)
Request the Full Underwriting Package →

Risk, Tax Advantages & How This Compares

Industrial real estate in a growing secondary market isn’t just a return play — it’s a tax-efficient, inflation-protected asset with downside protection most investments can’t match.

How This Deal Compares to Other Investments

15.2%
This Facility
Cash-on-Cash
4.0%
5-Year GIC
(April 2026)
5.5%
Canadian REIT Index
(Avg Yield)
7–9%
TSX Composite
(10-Yr Avg Return)
3–5%
Government Bonds
(Current Yield)

Returns shown for comparison. GIC/bond rates as of Q1 2026. REIT and equity returns are historical averages and not guaranteed. This facility’s 15.2% cash-on-cash is a projected return based on pro forma assumptions.

Risk Mitigation — What If It Sits Vacant?

$4,477/mo

Monthly Carrying Cost (Vacant)

Property tax (~$2,375/mo) + insurance (~$1,200/mo) + basic maintenance (~$900/mo). No debt service if purchased all-cash. With financing at 65% LTV: add ~$11,206/mo debt service for total of ~$15,683/mo.

$188K

12-Month Vacancy Reserve (Financed)

Worst-case: 12 months fully vacant with financing. That’s $188K in carrying costs — 20.7% of your initial equity of $910K. The building’s replacement cost alone (~$3M+) provides a floor under your investment.

48%

Breakeven Vacancy

The facility can sit nearly half empty and still cover debt service. At 5% vacancy, the DSCR is 2.11x — meaning the property generates more than double the income needed to pay the mortgage.

$125/SF

Below Replacement Cost

You’re buying at $125/SF. Building new costs $175–$225/SF for comparable industrial. The land alone is worth $400K/acre. Even in a downside scenario, the asset has embedded value that protects your capital.

Tax Advantages

CCA Depreciation (Class 1 — 4%)

The building qualifies for Capital Cost Allowance at 4% declining balance. On a $2.6M purchase (allocating ~$2M to building), that’s ~$80K in year-one CCA deductions against rental income — sheltering a significant portion of your cash flow from tax.

City of Salmon Arm 5-Year Tax Exemption

Salmon Arm offers a 5-year property tax exemption program for qualifying industrial improvements. New construction or significant capital upgrades on either parcel could qualify, reducing operating costs during the critical stabilization period.

Section 85 Rollover (Tax Deferral)

If you hold investment real estate through a corporation, Section 85 of the Income Tax Act allows you to roll property into a Canadian corporation on a tax-deferred basis. Consult your tax advisor on structuring for this property.

Property Management & Leasing Plan

Stuart can connect buyers with local property management firms experienced with industrial assets in the Shuswap. The leasing plan targets food processors, manufacturers, and cold storage operators — the same tenants showing up on the Zest Food Hub waiting list.

Get the Full Investment Package → Talk to Stuart →

Is This Deal Right for You?

This is not a generic warehouse — it's a competitive advantage. Yes, it's a former meat processing facility. That means the infrastructure most operators spend $2M+ to build is already here: CFIA-inspected kill floor, commercial cold storage, smokehouse, packaging lines, and loading docks. The right buyer saves 18+ months and significant capital vs. building from scratch.

🏭

Food Processor / Manufacturer

Protein, specialty manufacturing, refrigerated distribution, co-packing, or any operator who values an existing industrial shell with kill floor, cutting floor, coolers, and loading dock that can be retooled faster than building new.

🔧

Contractor / Storage Operator

The land parcel alone is a play for someone who needs a yard, open storage, or a base of operations. Lowest capital outlay, fastest path to income if the site can be graded.

📐

Developer / Investor

Buy the campus, stabilize the building, and develop the land on your timeline. Industrial strata sellout in the $11.5M–$12.5M range at competitive pricing, or build-to-suit for an institutional exit.

Stuart Wallensteen

Stuart Wallensteen

The Cash Flow Agent

BC Interior Industrial Specialist  ·  Stonehaus Realty

Stuart specializes in industrial and commercial investment properties across BC’s Interior — Salmon Arm, Kamloops, Kelowna, and the Okanagan corridor. His focus is on cash-flowing assets and development plays that deliver measurable returns for investors, developers, and owner-operators.

Every listing comes with full underwriting, pro forma analysis, and market intelligence — not just a price and a paragraph. If you’re looking at industrial opportunities in BC’s fastest-growing markets, Stuart is the call to make.

Get the Full Investment Package — Free

Pro formas for all three scenarios, floor plans, Phase I ESA summary, 109 high-res photos, zoning documentation & competitive analysis — delivered to your inbox in minutes.

📊
3 Pro Formas
📷
109 Photos
🏠
Floor Plans
📄
Phase I ESA
📈
Market Comps

Your information is kept confidential and will only be used for this listing.

Talk to the Listing Agents

Pro formas, floor plans, Phase I ESA, zoning documents, site plans, and environmental summaries available on request. Reach out to either agent below.

Stuart Wallensteen

The Cash Flow Agent  ·  Stonehaus Realty
📍 A-1126 Austin Avenue, Coquitlam, BC V3K 3P5
Social: @TheCashFlowAgent

Angela Huo

RE/MAX Westcoast
📍 Unit 110, 6086 Russ Baker Way, Richmond, BC V7B 1B4

Investor FAQ

It’s a former meat processing facility. Is that a liability?

The opposite. CFIA-inspected processing infrastructure — kill floor, commercial cold storage, smokehouse, packaging lines, loading docks — costs $2M+ to build from scratch. A food processor or manufacturer buying this facility gets 18+ months of construction time and significant capital savings. The Phase I ESA is on file and available in the full investment package.

Why is this priced so far below Kelowna industrial?

Salmon Arm industrial land is trading at $400K/acre vs. $900K–$1.2M in Kelowna and $600K+ in Kamloops. The facility ask of $125/SF is well below replacement cost. This is a market timing play — Salmon Arm is growing (population up 8.4% from 2016–2021, fastest in the Shuswap) but industrial pricing hasn’t caught up yet. The demand signals section covers why that gap is closing.

Can the facility be used for something other than meat processing?

Yes. The “Convert & Reposition” scenario in the pro forma models the facility as multi-tenant light industrial (3–4 units). The cold storage, loading docks, and industrial shell work for food distribution, cannabis processing, craft brewing, specialty manufacturing, or any operator needing temperature-controlled space. Zoning is M-4, which permits a wide range of industrial uses.

What are the environmental risks?

A Phase I Environmental Site Assessment has been completed on the 4141 facility parcel. Less than 0.5 acres of the 5100 land parcel was used as a septic field for the facility. The septic system was designed by Poing One Engineering with a Ministry of Environment permit. Full ESA documentation is available in the investment package. Soil or contamination status on the 3-acre parcel is unknown to the current owner.

What’s the development potential on the 3-acre land parcel?

The 5100 parcel is zoned M-1 (General Industrial), which allows industrial strata, warehousing, contractor yards, open storage, and light manufacturing. The pro forma models a build-to-suit scenario with industrial strata sellout in the $11.5M–$12.5M range. Current M-1 zoning is flexible — full permitted use details are in the investment package.

Are the properties available separately or only as a bundle?

Both. The facility at $2.6M and the land at $1.2M can be purchased individually. The combined assembly is offered at $3.8M. The bundle pro forma shows how the two-asset play creates the strongest return profile, but each asset stands on its own.

What financing is available?

The pro formas model conventional commercial financing at 65% LTV, 5.75% interest, 25-year amortization. With those assumptions, the facility generates positive leverage from day one. We can connect qualified buyers with commercial lending contacts familiar with the property. Details in the full investment package.

How do I get the full investment package?

Fill out the form above or call Stuart directly at 604-369-7304. The package includes all three pro formas, 109 high-res photos, floor plans, Phase I ESA summary, competitive positioning analysis, and zoning documentation. It’s free and confidential.

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