Step-by-Step Land Assembly Guide in Kelowna

Step-by-Step Land Assembly Guide in Kelowna

With a recent local case study you can learn from (Pandosy Village example).

What is a land assembly?

A land assembly is when two or more neighbours sell together so a builder can create a bigger project than one lot allows.

This usually happens in places where the City supports more housing, like:

• Urban Centres (Pandosy, Downtown, etc.)

• Transit areas near exchanges

• Corridors where mixed-use is encouraged

Kelowna has also updated zoning rules to allow more units on many single lots, which can change the “need” for assembly in some areas. City of Kelowna+1

When does a land assembly make sense?

A land assembly usually makes sense when one lot alone can’t do the project you want.

Common reasons:

• You need more width for building design and parking access

• You want higher density allowed in that land use area

• The project works best at a certain scale (example: rental building, mixed-use)

When it might NOT make sense:

• The area already allows 4–6 units on one lot (in some parts of Kelowna) 

• The lots have major constraints (creeks, steep slope, odd shapes)

• Owners want very different prices or timelines

Step-by-step: How to do a land assembly in Kelowna

Step 1: Pick the goal first (don’t start with the lots)

Decide what you’re building toward:

• Small multi-unit (4–6 units)

• Townhome site

• Rental apartment

• Mixed-use (commercial + residential)

• Long-term hold for future redevelopment

Tip: The goal tells you what zoning/land use you need.

Step 2: Check land use + zoning before you talk to owners

This is where most people waste time.

Look at:

• OCP future land use

• Current zoning

• Whether it’s near a Transit-Oriented Area (TOA)

• Basic “can this even work” math (height, FAR, setbacks)

Kelowna’s planning updates also mention TOA areas and zoning amendments that affect density and parking rules in those areas.

Step 3: Map the “assembly shape”

Assemblies work best when the combined site is:

• Rectangular-ish

• Has good road access

• Can meet fire access + servicing needs

Even one “key” lot can make or break the whole deal (corner lots often matter a lot).

Step 4: Build a simple “back of napkin” pro forma

Before you chase signatures, do a basic check:

• Approx buildable area (rough)

• Rough construction cost range

• Rough revenue (sale or rent)

• Soft costs and City fees

• Profit / margin buffer

If the deal only works when everything goes perfect… it’s not a deal.

Step 5: Approach owners the right way (trust first)

Most assemblies fail because owners feel pressured or confused.

Simple approach:

• Ask if they’ve thought about selling in the next 1–3 years

• Share that the area has changing development potential

• Offer a “no-pressure” value discussion

Do NOT oversell density. Zoning, form & character, servicing, and approvals still matter.

Step 6: Use LOIs and conditions (don’t jump straight to firm)

Land assemblies are high risk. You usually need:

• Long enough subject period for due diligence

• Clear condition language (rezoning, DP, feasibility, financing)

• Clear roles for each owner (who signs what, when)

Step 7: Due diligence (this is where deals die)

Minimum checks:

• Title + easements + statutory rights of way

• Environmental risk (old fuel tanks, former commercial use, etc.)

• Servicing capacity (water, sewer, storm)

• Geotech / slope stability (if applicable)

• Tenant situation + holding income (if any)

Reality: One surprise can wipe out the margin.

Step 8: Decide deal structure (simple is safer)

Common options:

• Straight purchases (each owner sells)

• One contract with multiple sellers

• Share sale / trust structure (more complex — legal advice needed)

Step 9: Choose the “exit path”

Your exit should be clear before you close:

• Flip to a builder once approvals are in place

• Partner with a builder (JV)

• Build yourself (higher risk, higher reward)

• Hold as income while you wait for timing

Recent Kelowna case study example - Pandosy Village assembly

Here’s a clean “real world” example of what an assembly looks like in a prime location:

4-lot assembly at Pandosy St + Wardlaw Ave

• 4 lots assembled at a corner site in Pandosy Village 

• 0.57 acres (24,824 SF) 

• Listed price $7,789,000 

• Zoning shown as UC5 Pandosy Urban Centre

• Mentions potential up to 2.35 FAR for a rental project and proximity to major amenities 

Why this is a strong example

• It’s in an Urban Centre (where higher density is commonly supported)

• It’s a corner, on a main route, near amenities (strong demand factors)

• It’s big enough to be interesting to serious developers

The honest limitations

• Listing claims still need verification (always)

• Approvals are never guaranteed

• High land cost means the project needs strong rents/sales to work

The biggest risks (don’t skip this)

Risks to watch:

• One owner holds out → price jumps → deal breaks

• Rezoning or DP delays

• Servicing costs higher than expected

• Neighbourhood pushback (even if policy supports it)

• Carry costs (interest, taxes, insurance) while you wait

Upside if done right:

• Big value lift vs single-lot pricing

• Better project design

• More buyer demand (builders prefer clean, scalable sites)

FAQs

Is land assembly worth it in Kelowna?

Sometimes. If the site needs scale to work, yes. If you can already build what you want on one lot, maybe not.

Do land assemblies still matter with the new 4–6 unit rules?

Yes, but the math changes. Some owners may choose small multi-unit instead of selling into an assembly. Kelowna’s zoning changes reflect this shift. 

How do I know if my lot has assembly value?

Look at zoning, future land use, transit area rules, and what’s being built nearby. Then run a realistic feasibility check.

If you’re a homeowner with a property that might have development value — or you’re a builder/investor looking for assembly opportunities — reach out.

Mark & Maddie | Selling Kelowna Real Estate Group | eXp Realty Kelowna
📧 [email protected] 
📞 778-744-0872