Commercial real estate roundup: Bainbridge development sells for $17 million

hildebrandA Bainbridge Island mixed-use development and a Port Orchard Walgreens building were among the prominent commercial properties that changed hands during a busy first quarter of 2016.

All told, 102 commercial parcels sold in January, February and March for a combined $111.1 million, according to county assessor’s records. 

Sales of large apartment complexes, including Santa Fe Ridge, Bremerton Gardens and Admiral Manor, accounted a large portion of that total. I detailed those sales in a recent rundown of apartment transactions.

Below is a look at some of the notable commercial sales of the year so far, plus a couple from the end of December that didn’t make my last roundup.

Madison Square, Bainbridge — $17.5 million

hildebrand.map

Sale date: March 9

Assessed value: $13.9 million

Sold by: Madison Square LLC. to LBG Bainbridge LLC.

Description: Seven tax parcels on Hildebrand Lane, south of the Island Village shopping complex. Buildings include a mix of retail, office and apartments.

Notes: The seller is a corporation headed by islander Michael Burns. LBG Bainbridge LLC is a subsidiary of Lord Baltimore Group Ltd., and lists a Vancouver, B.C. mailing address.

The same buyer also purchased the adjacent Camelia apartments for $4.6 million this year, and bought a commercial cluster in Poulsbo which I describe below, all from Burns.

Liberty Center, Poulsbo — $5.93 million

liberty.centerSale date: March 9

Assessed value: $5 million

Sold by: Liberty Centre LLC. to LBG Bainbridge LLC.

Description: Three buildings with a combined 30,000 square feet of space on 2 acres on the northeast corner of Liberty Road and Highway 305.

Notes: See notes above. Major tenants include John L. Scott and Key Bank.

Grow apartments, Bainbridge — $5.2 million

grow_cooperext3
Courtesy Grow Community

Sale date: Feb. 4

Assessed value: $973,560

Sold by: Bainbridge Community Development to Clarke Properties LLC.

Description: Two tax parcels at the southeast corner of Wyatt Way and Grow Avenue where the “Cooper” rental apartments were constructed as part of the Grow Community project.

Three-story, 10-unit buildings were slated for each parcel, according to city planning documents.

Walgreens building, Port Orchard — $5.18 million

walgreens

Sale date: Feb. 11

Assessed value: $3.26 million

Sold by: McCandless Port Orchard LLC. to Lease Fund II LLC.

Description: A 15,000-square-foot pharmacy building on 1.8 acres at the northeast corner of Lund Avenue and Bethel Road.

Notes: Across the street from the Bethel Junction shopping center, which also sold recently.
Continue reading

Real estate update: More homes came on the market in April

ferncliff01_23090926_ver1.0_640_480Kitsap’s depleted inventory of homes for sale received a much needed injection of new listings in April.

A total of 568 new listings were added last month, 71 more than were added in April 2015, according to Northwest Multiple Listing Service. The influx raised the total number of active listings from 566 in March to 655 in April.

0411_KitsapIndicator_MonthsSupply_KSThough surely welcome, the added listings did little to ease the tight market.

The inventory of available homes remained 22 percent lower than in April 2015, and 56 percent lower than in April 2012.

Sales were steady last month, with 584 transactions pending, up 5 percent from the previous year. The county’s median home price hovered at $270,000, up 7 percent year-over-year.

The months supply of homes (the number of months it would take to sell off all the homes for sale if no new listings were added) eased slightly to 1.83 months.

A market is generally considered balanced when it has a supply of four to six months. Kitsap’s market still strongly favors sellers.

Here’s a graphical look at Kitsap real estate trends:

And here’s a map showing April real estate stats by submarket. Wave your clicker each MLS area for details. Drop me a note if there are other stats you’d like to see included:

Two pot stores approved for same Port Orchard shopping center

PO.pot.storesSoon shoppers will be able to look out the window of one Port Orchard marijuana store and see another marijuana store across the parking lot.

A shop called Kitsap Cannabis was approved by the Liquor and Cannabis Board last week for a space at 1739 Village Lane SE, in the South Park Village.

It joins the descriptively named A Recreational Marijuana Store, already licensed at 1762 Village Lane SE, in the same shopping center.

Kitsap Cannabis is the seventh recreational marijuana store approved in the Port Orchard area, and the 16th in Kitsap. The state plans to license up to 20 retailers in the county.

Below is a chart showing retail marijuana sales trends: Continue reading

Big apartment complexes are selling in Kitsap

2Q==Kitsap’s rental housing market is hot and investors have taken notice.

At least eight large apartment complexes sold in the past year for a combined $174 million, according to county records.

One Los Angeles investment group, Benedict Canyon Equities, appears to have acquired four apartment complexes in Silverdale for more than $30 million each. My calls to Benedict Canyon were not returned.

Here’s a rundown of major apartment sales since the start of 2015, ranked by sale price:

TreeTops, Silverdale — $40.25 million

treetopsSale date: Dec. 11, 2015

Assessed value: $20.2 million

Sold by: Treetops Investors LLC. to Tahoe Lane Apartments LLC.

Location: 1206 NW Tahoe Lane, off Ridgetop Boulevard NW.

Notes: Benedict Canyon Equities is the listed taxpayer.

Wellington, Silverdale — $38.25 million

wellingtonSale date: Sept. 24, 2015

Assessed value: $19.99 million

Sold by: GFS Wellington LLC. to Gemini Wellington Fee Owner LLC.

Location:  3435 NW Kensington Lane, off Randall Way.

Notes: The mailing address for the taxpayer is the same as Benedict Canyon Equities

Santa Fe Ridge, Silverdale — $37.5 million

santa.feSale date: Jan. 29, 2016

Assessed value: $21.75 million

Sold by: SK Santa Fe Ridge LLC to Santa Fe Ridge Apartments LLC.

Location: 1410 NW Santa Fe Lane,  off Ridgetop Boulevard.

Notes: Benedict Canyon Equities is the listed taxpayer.

Madison at Ridgetop, Silverdale — $31.25 million

madisonridgetopsSale date: Sept. 24, 2015

Assessed value: $18.12 million

Sold by: GFS Ridgetop LLC. to Gemini Ridgetop Fee Owner LLC.

Location: 11150 Voyager Lane NW, off Ridgetop Boulevard NW.

Notes: The mailing address for the taxpayer is the same as Benedict Canyon Equities.

Bremerton Gardens, Bremerton — $13 million

9k=Sale date: March 9, 2016

Assessed value: $12.67 million

Sold by: Bremerton Stephanus I LLC. to Bremerton Fee Owner LLC.

Location: 4038 Mountain View Drive, off lower Wheaton Way in Manette

Notes: The new owner is an affilliate of New Standard Equities of Los Angeles. They plan major renovations.

Admiral Manor, Bremerton — $5.83 million

B0012880399--834114Sale date: Jan. 22, 2016

Assessed value: $5.49 million

Sold by: Admiral Manor LLC. to Project S12 LLC.

Location: 145 Bloomington Ave., off Burwell Street.

Notes: The owner is an affiliate of The Stratford Company of Seattle. They plan major renovations.

Camelia, Bainbridge Island — $4.57 million

cameliaSale date: March 9, 2016

Assessed value: $2.19 million

Sold by: Ihland Apartments LLC. to LBG Bainbridge LLC.

Location: 235 Camelia Loop NE, just southeast of the library off Madison Avenue.

Notes: The new owner appears to be an affiliate of a Vancouver, B.C. company. (Corrects a HQ location I listed earlier.)

Woodcreek, Poulsbo — $3 million

woodcreekSale date: Sept. 8

Assessed value: $1.53 million

Sold by: Woodcreek Associates to Poulsbo 40 LLC.

Location: 2160 NE Hostmark Street, across from Poulsbo Middle School.

Notes: New owner is based in San Diego. This complex was originally subsidized by a federal loan, but was recently converted to market rate apartments.

Assessed values are for the 2016 tax year. Check back this week for a roundup of major commercial real estate sales from the first quarter of 2016.

Starbucks, Sherwin-Williams proposed in Poulsbo

Starbucks_1414714707663_9393554_ver1.0_640_480Starbucks is continuing its shift to more driver-friendly stores in Kitsap with a proposal for a new location on Highway 305 in Poulsbo.

starbucksThe city received a permit application earlier this month for a 2,000-square-foot Starbucks coffee shop with drive-thru and 4,000-square-foot Sherwin-Williams paint store on a site adjacent to CVS, just north of Hostmark Street.

(Click the inset image for a rough locator.)

A site layout submitted to the city shows two standalone buildings. The Starbucks would be on the west side of the site, closest to the highway. The paint store would be situated on the east side. The drive-thru lanes would separate the buildings.

The applicant is PacLand Seattle, which has developed a number of retail centers in Washington and Oregon.

Starbucks has been busy in Kitsap of late. The Seattle coffee giant recently added stores with drive-thrus in Silverdale, Kingston and Poulsbo’s College Marketplace.

Starbucks relocated stores to the new buildings in Silverdale and College Marketplace. The proposed Highway 305 shop seems well positioned to replace the existing Starbucks in Poulsbo Village, near the recently-abandoned Albertsons.

Sherwin-Williams has outlets in Silverdale and Port Orchard. The company came close to placing a store in College Marketplace in 2011, but the deal was stalled by development restrictions negotiated by Walmart and Home Depot, according to court documents filed in a related lawsuit.

Kitsap retail sales up 10 percent in fourth quarter

20051225-013527-pic-742444482Kitsap retailers had cause to celebrate during the 2015 holiday season.

The $1.03 billion in taxable retail sales reported by county businesses during the last three months of the year marked a 10.4 percent increase from the same period of 2014.

Kitsap posted the largest percent increase in fourth quarter sales of any county in the Puget Sound region, according stats from the state Department of Revenue. 

Retail trade sales — sales made by dealerships, stores and other businesses selling merchandise directly consumers — were up 7.7 percent.

Major retail trade industries reporting increased sales included auto dealers and parts stores (up 11.4 percent), building and garden material suppliers (up 12.5 percent), and general merchandise stores (up 5.1 percent).

Outside of retail trade, building construction was up an impressive 25.4 percent, manufacturing up 7 percent, wholesale trade 16.3 percent, information up 14.5 percent, and accommodations up 26.1 percent.

(Click here to see the year-over-year change in sales every industry in Kitsap.)

Annual sales

With the fourth quarter stats in hand we can now see how 2015 sales stacked up to previous calendar years.

Retail sales in Kitsap increased by 9.96 percent from 2014 to 2015, and 26 percent from five years ago.

Here’s a chart showing annual retail sales in Kitsap for the past five years:

Health district releases new draft vaping ordinance

0203_KSLO_Vape5Kitsap Public Health District posted an updated draft of an ordinance Wednesday that would ban vaping in indoor public places.

The district had been developing a much broader ordinance regulating vaping and vape shops in the county but a new state law on vaping nullified many of the proposed local rules. 

The state law bans minors younger than 18 from possessing or purchasing vapor products, requires vapor retailers to obtain licenses and prohibits vaping in some public places, such as schools and playgrounds, frequented by children, among many other provisions.

The law didn’t address vaping in many indoor public places, and that’s the area the health district is targeting with its new draft ordinance.

The ordinance would prohibit vaping in any interior space available to the public, including workplaces, restaurants, stores, buses and elevators — essentially any enclosed gathering space that is not a private residence:

indoor plublic space

Under the proposed ordinance, establishments that bar entry to minors could obtain waivers to allow indoor vaping. The local ban also would not apply to vape shops, where vaping is still allowed under the new state law.

The public health board will review the new draft ordinance at its May 3 meeting, but will not take action until a later date.

The full text of the draft ordinance is posted below:

KPHB Draft Regulations Restricting Vaping in Indoor Public Places by Tad Sooter

Graphic: Updated Trails at Silverdale store locations

Two more tenants — Purpose Boutique and The Habit Burger Grill — were announced for The Trails at Silverdale shopping center last week.

Here’s an updated graphic showing where the businesses will be located:GraphicTemp

 

Tenants have not been named for seven spaces at the trails, including the grocery store building. These include a couple of very large retail spaces, and a restaurant space in the northwest corner.

Kitsap posts solid first quarter job growth

Kitsap County added about 2,366 jobs from the first quarter of 2015 to the first quarter of 2016, according to preliminary estimates from the state Employment Security Department.

Kitsap had an average of 88,233 jobs during the first three months of the year, up nearly 3 percent from the same period of 2015. Job growth came from both the private sector (up 2 percent) and government sector (up 4 percent).

Here’s a graphical look at job growth in the county:

Employment/Unemployment

Overall employment among Kitsap residents also improved in the first quarter.

The county’s labor force (the total number of people working or seeking work) was up about 3,500 from the first quarter of 2015, reaching an average of 118,651.

An average of 111,711 residents were employed during the first three months of the year. The county unemployment rate hovered at about 5.8 percent.

Here’s a long-term look at Kitsap employment trends:

Marijuana store approved in Manette

budeez

A fourth and final marijuana store has been approved for the city of Bremerton.

The state Liquor and Cannabis Board gave the green light Thursday for a recreational pot shop called Budeez, at 2111 E 11th Street, next door to Manette Saloon. The space was previously home to a martial arts studio.

With Destination HWY 420, Pacific Cannabis Co. and The Reef already licensed within city limits, Bremerton has now reached its state-imposed cap of four marijuana retailers.

Budeez is the 15th store approved in Kitsap County. The state plans to license up to 20 retailers county wide.