Category Archives: Real Estate

Commercial real estate roundup: South Kitsap timberland sells for $9M

b0012744021-852179A massive swath of South Kitsap changed hands this summer.

In June a buyer paid $9.25 million to McCormick Land Company for nearly 2,000 acres of timberland south of McCormick Woods.

The deal highlighted a busy spring and summer for commercial land transactions in Kitsap County. Below is a roundup of other high-profile sales recorded from April through July, with details from assessor’s documents and additional research.

This list doesn’t include the $20 million sale of the Silverdale Ridge apartments, which I reported on earlier this year.

Keep in mind these are property transactions, and the businesses occupying these properties may not have changed hands.

McCormick timberland — $9.25 million

Sale date: June 22

Sold by: McCormick Land Company LLC to Bar MH Timber WA LLC.

Description: More than 1,800 acres of timberland divided into 166 tax parcels, located south of McCormick Woods and east of Bremerton National Airport.

Notes:  McCormick Land Company also recently sold off its residential development land surrounding McCormick Woods.

I’m working to get in touch with the buyers of the timberland to find out what their plans are.

Best Western, Bainbridge Island — $7.25 million

bestwestern

Sale date: June 29

Assessed value: About $4 million

Sold by: Bainbridge Island Commons LLC. to BB Hotel LLC.

Description: A four story, 51-room hotel on 2.7 acres at 350 NE High School Road.

Notes:  BB Hotel LLC. has a Honolulu mailing address. Continue reading

Application filed for Poulsbo storage facility

poulsbo.self.storage

A self storage company is moving ahead with plans for a four-story facility near Safeway in Poulsbo.

self.storageSite plan and critical area permit applications were filed for a 90,000-square-foot facility to be constructed on 2.55 acres at the southwest corner of Lincoln Road and 10th Avenue, according to a notice published this month by the city.

The hillside site is situated just east of Highway 305 and south of Safeway.

Two floors of the building would be above ground on the east (uphill side of the property), with two stories below ground.

All four stories would be above ground on the west (downhill) side.

Customers would access the facility from Lincoln Road and 10th Avenue.

A 100-foot buffer would protect the south fork of Dogfish Creek on the southwest corner of the property.

The applicant is Urban Self Storage of Seattle, which also operates facilities near Keyport and on Bainbridge Island. A subsidiary of Urban Self Storage bought the Poulsbo property from Union Bank in 2014 for $545,000, according to county documents.

Building rendering by Jackson | Main Architecture, via the city of Poulsbo.

NOA PoulsboHeatedStorage by Tad Sooter on Scribd

Stalled Poulsbo apartment project may be moving again

It’s been a few years since we’ve had any news to report on the Edward Rose project, a massive residential development planned for the corner of Highway 305 and Bond Road in Poulsbo.

0630_LOC_RoseDevelopment_KS copy
Kitsap Sun file art | Click to enlarge

That changed this Thursday, as the city announced pre-application materials had been filed for the development, which would create 552 apartment units, 160-units of senior housing, a commercial plaza, and 34 acres of landscaping and open space, spread across 57 acres.

Access would be from Bond Road and Highway 305, with a connection to Vetter Road also planned.

A pre-application meeting is scheduled for Oct. 4. The pre-application process allows developers to informally discuss plans with city staff because filing a land use application.

A master plan for Edward Rose was approved in 2011, but the project never broke ground.

Edward Rose & Sons is a development company based in Michigan.

Kitsap real estate market was still hot in August

Kitsap’s real estate market ended the summer season with a bang.

Listings, sales and prices were all up in August, according to the latest numbers from Northwest Multiple Listing Service. 

More “for sale” signs popped up across the county last month, with 591 new listings added. About 970 homes were available in August, down 6 percent from August of 2015, marking a slight improvement in inventory from earlier in the year.

Sales continued at a torrid pace. More than 630 homes were pending in August, a 13 percent increase from last year. Closed sales were up 22 percent.

Kitsap’s median home price (including condominiums) bumped up to $292,000, up 12.3 percent from August of 2015.

Here’s a graphical look at real estate trends in the county:

And here’s a map showing real estate statistics by submarket:

Jimmy John’s planned for new Silverdale building

constuction

Jimmy John’s is bringing its “freaky fast” sandwich service to Silverdale.

The restaurant chain was the first tenant confirmed for a 4,200-square-foot commercial building now under construction next to the AMC in Silverdale. 

jjLogoLargeProperty manager Jeff Coombe said the structure should be finished by the end of the year. Jimmy Johns is expected to open in early 2017.

The building will have room for at least one other retail tenant, Coombe said.

Silverdale will be the second Kitsap County franchise location for Jimmy John’s. The same franchisee group opened a shop at the corner of Burwell Street and Park Avenue in Bremerton in 2013.

The future home of Jimmy John’s in Silverdale is being constructed in a parking lot at Clear Creek Office Plaza. Coombe said the existing building in the plaza just underwent a $1 million remodel and has space available for new tenants.

The owner of the plaza property also owns the neighboring AMC parcel. The theater is enjoying an uptick in business after receiving $4 million in improvements, Coombe said.

The Randall Way/Kitsap Mall Boulevard corridor has been hopping with construction this year. 

Newlife church broke ground on a new center at the site of the former Regal cinema in May. A self-storage center is taking shape on the hillside west of Randall.

Kitsap Mall is expanding to make room for a Dick’s Sporting Goods store, set to open this fall.

Wave of home listings buoyed market in July

B0015078797--870950A wave of new listings hit Kitsap’s real estate market in July, helping to replenish — if only slightly — the county’s scant supply of homes for sale.

Other Western Washington markets enjoyed a similar influx of listings, Northwest Multiple Listing Service reported.

“We might actually be starting to move very slowly back toward a more balanced market,” OB Jacobi, president of Windermere Real Estate, said in a news release.

In Kitsap, 654 homes came on the market in Kitsap in July, raising the total number of available listings to 944.

Inventory was still down 10 percent from July 2015, but that marked a major improvement from January, when there were 30 percent fewer homes on the market compared with the previous year.

Pending sales remained strong in July, up 7 percent from 2015, while closed sales dipped. The county’s median home price was $290,000, up about 5 percent.

Here’s a map showing real estate data for Kitsap County submarkets. Hover your mouse over each area to see local stats:

Starbucks, Sherwin Williams stores approved in Poulsbo

rpi retailPoulsbo has approved plans for a retail complex that will house a Starbucks coffee shop and Sherwin-Williams paint store.

The stores will be constructed on a parcel directly north of CVS, off the intersection of Highway 305 and Hostmark Street (see inset image).

Starbucks will get a 2,000-square-foot shop with drive through. Sherwin-Williams will occupy a 4,000-square-foot space.

The Poulsbo planning director approved the project Aug. 1, according to a notice published by the city.

The applicant is PacLand-Seattle, which initially submitted plans for a coffee shop and restaurant on the site.

CVS sold the 1-acre parcel to Seattle-based RPI Poulsbo LLC. at the end of June for $1.175 million, according to county documents.

Sherwin Williams already signed a 10-year lease agreement with RPI Poulsbo, with a projected start date of May 2017.

I included a little more context in my original post on this project.

Another big apartment sale in Silverdale

silverdale.ridge.small
Silverdale Ridge sold on May 26 for $20.05 million.

run on apartment complexes has been one sign of Kitsap’s resurgent rental market.

In Silverdale, two Los Angeles-based firms have spent a combined $167 million buying up large apartment complexes in the past year, according to assessor’s records.

Most recently, an LLC affiliated with Benedict Canyon Equities bought the Silverdale Ridge Apartments for $20.05 million. Benedict Canyon’s portfolio now includes three complexes in the Ridgetop area.

TruAmerica, a separate firm headquartered in the same Los Angeles building as Benedict Canyon, bought the Wellington and Madison at Ridgetop apartments last fall, as part of a 14-property, multi-state deal.

Here’s a infographic showing the sales (click to enlarge):

silverdale.apt.sales

A description of Silverdale on TruAmerica’s website provides insight into why investors are sweet on the area. The description notes the local economy is “driven by retail, health care, and professional military,” and highlights Harrison Medical Center‘s $240 million expansion project.

Rents also are improving (from a landlord’s perspective) in the county. In a second quarter market report, Tom Cain of Apartment Insights Washington found Silverdale had the largest average rent increase of any submarket in Kitsap.

Click here to read my post on second quarter rental trends in Kitsap.

Average apartment rent now $1,134 in Kitsap

B0012506365--503284Average rent for an apartment in Kitsap County climbed to $1,134 in the second quarter of 2016, while vacancies dropped below 4 percent.

Average rent per unit was up $57 from the first quarter of the year, marking the largest quarterly increase in the past two years.

Rental statistics were provided by Tom Cain of Apartment Insights Washington, who surveys apartment complexes with 50 or more units and tracks industry trends.

Average rent in Kitsap was up 12.4 percent in the second quarter of 2016, compared with the same period of 2015.

Complexes in the Poulsbo/Bainbridge Island submarket reported both the highest average rent ($1,418) and lowest vacancy rate (2.42 percent) in the county.

Silverdale had the highest vacancy rate at 4.19 percent, but the area also saw the largest rent increases in Kitsap in the second quarter.

Cain listed job growth, a hot for-sale real estate market, and a lack of apartment construction as factors contributing to low vacancies and steady rent hikes in Kitsap and neighboring counties.

“We anticipate that with the rapidly rising rent levels and very low vacancy rates, more developers will be taking notice of Pierce, Kitsap and Thurston Counties,” Cain said in a news release.

Here’s a graphical look at apartment rental trends in Kitsap:

Proposed project would redevelop Liberty Bay Auto property

Liberty Bay Village Pre-App Package_reducedA Poulsbo property owner is considering a plan to redevelop a car dealership property at the head of Liberty Bay with a mix of shops and homes.

liberty.bay.villageThe city received a pre-application submittal in June for a project called Liberty Bay Village, which would replace Liberty Bay Auto and a neighboring commercial building with a mixed-use development.

In a project narrative attached to the submittal, architect Charlie Wenzlau said the project was designed to complement a planned extension to the city’s waterfront boardwalk.

Wenzlau submitted the pre-application package on behalf of Dean Church, who owns the Liberty Bay Auto dealership, the 1.8-acre Liberty Bay Auto property and a 1.6-acre parcel to the south, which is home to a dance studio and auto glass shop.

A pre-application conference with city staff is scheduled for July 19. The pre-app process allows developers to get feedback on the feasibility of a project before filing a formal permit application.

liberty bay photoIn an email Tuesday, Church said he would be available to comment on the proposal later this week, and stressed it was a long-range vision for the property.

Liberty Bay Village would incorporate a landscape buffer along the boardwalk, a pocket park and a “central plaza with shoreline access.”

A cluster of retail buildings would be constructed on the Liberty Bay Auto property, with potential for apartments above. Two, two-story residential buildings are planned for the southern parcel. A line of “carriage” houses would add more homes along the east edge of the site.

Overall, the project would create 35,600 square feet of residential space and 14,400 square feet of commercial space, served by 72 parking stalls.

“We believe the project has the opportunity to provide a prominent anchor to the northern end of the boardwalk and enhance this intersection which serves as a gateway to Old Town Poulsbo,” Wenzlau wrote in the proposal.

Click here to see the full pre-application submittal.

Housing Kitsap projects

Also on July 19, the city will hold pre-application conferences for two Housing Kitsap projects.

The county housing authority is collaborating with Sound West Group on the “NK Help Campus” proposal, which would bring a mixed-use development with apartments and commercial space to Viking Avenue property neighboring North Kitsap Fishline. 

And Housing Kitsap is working with Central Highland Homes on a “College Park” proposal for single-family homes and an apartment building near Olympic College Poulsbo.