Tag Archives: apartments

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

hildebrand A 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

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

Sale 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 →

Big apartment complexes are selling in Kitsap

Tad Sooter

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

Sale 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

Sale 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: This property is part of TruAmerica’s portfolio. TruAmerica has its headquarters at the same address as Benedict Canyon Equities.

Santa Fe Ridge, Silverdale — $37.5 million

Sale 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

Sale 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: This property is part of TruAmerica’s portfolio. TruAmerica has its headquarters at the same address as Benedict Canyon Equities.

Bremerton Gardens, Bremerton — $13 million

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

Sale 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

Sale 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

Sale 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.

UPDATE: This post was updated to reflect that the Wellington and Ridgetop apartments are owned by TruAmerica.

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.

Average apartment rent in Kitsap reaches $1,077

Tad Sooter

12096541_10206510262029092_907327638897249611_n Kitsap’s rental market remains tight, but rents and vacancy rates seem to be steadying.

Average rent at large apartment complexes was $1,077 a month in the first quarter of 2016, a $6 increase from the fourth quarter of 2015.

Rent was up about $116 from a year ago, a 12 percent change, according to numbers provided by Tom Cain of Apartment Insights Washington.

Vacancy rates ticked up for the third straight quarter, reaching 4.22 percent.

The opening of the 71-unit 606 apartments in downtown Bremerton likely played a role in increasing vacancies. Bremerton’s vacancy rate jumped from 2.64 percent in the fourth quarter of 2015 to 4.53 percent in first quarter of 2016.

Poulsbo/Bainbridge Island remained the tightest submarket, with a 2.91 percent vacancy rate.

In his quarterly report, Cain noted the shortage of homes for sale in the region has been a boon for rental owners.

“The tight home sale market and moderate level of new apartment construction will help keep pressure on rentals,” Cain wrote. “We expect the market to flourish this year.”

Here’s a graphical look at Kitsap rental trends:

Kitsap county rental trends
Create your own infographics

Why not convert Harrison Bremerton into affordable housing?

Tad Sooter

Harrison Medical Center’s consolidation in Silverdale will leave a 450,000-square-foot hospital vacant in East Bremerton three years from now.

Harrison parent company CHI Franciscan Health is still determining if the building can be repurposed or should be torn down.

Given the looming affordable housing crisis in Kitsap, reader Kim Edgar in Poulsbo wondered if Harrison Bremerton could be converted into dorm rooms for Olympic College students or some other form of low-cost housing.

“The rooms are large enough to be dorm rooms and they have their own bathrooms,” Edgar pointed out in an email.

“Throw in a small fridge and a microwave and you’ve got a dorm room. They could convert the nurses station in to a common room, laundry room and a common kitchen area.

“Or, maybe Kitsap Housing Authority could turn the hospital into an affordable apartment complex and possible temporary housing for the homeless.”

Edgar probably isn’t the only Kitsap resident eyeing the Harrison Bremerton building as a potential home for affordable rentals, so I asked Kurt Wiest with Bremerton Housing Authority if the idea sounded feasible.

“The simple answer,” Wiest said, “is it’s complicated.”

The Housing Authority has been interested in the site since Harrison announced its relocation plans. But Wiest said retrofitting the aging hospital into apartments would almost certainly be cost prohibitive.

Since portions of the building were built decades ago, Wiest said there are likely hazardous materials like lead or asbestos present that would make residential conversion a complex and expensive prospect.

Wiest believes there is potential to create housing at the Cherry Avenue campus if the hospital is demolished. Much will depend on what CHI Franciscan decides to do with the property.

Have an idea for creating affordable housing in Kitsap? Drop a comment below or write me at tad.sooter@kitsapsun.com.

Application submitted for Viking Way apartments

Tad Sooter

Developers are moving ahead with plans for a 91-unit apartment complex on Viking Way in Poulsbo.

A site plan permit application for “Arendal on Viking” was filed with the city Monday.

Plans show four apartment buildings spaced across the 7.6 acre property, which lies east of Viking Way, just south of the Highway 305 intersection.

The complex will be served by 184 parking spaces, with access off Viking. Planned amenities include a clubhouse, barbecue area, bicycle storage and a dog park.

According to the notice of application, there is a category 3 wetland on the property, and the developer is proposing a 25 percent buffer reduction.

The applicant is Viking Avenue Properties, LLC., headed by Kelly Clark of Kingston.

Public comments on the project will be taken through April 5, and can be sent to 200 NE Moe Street, Poulsbo, WA 98370 or plan&econ@cityofpoulsbo.com. Plans can be viewed at City Hall.

The full notice of application is posted below: Continue reading →

Bremerton Gardens apartments sell for $13M

Tad Sooter

A Los Angeles-based real estate company purchased the Bremerton Gardens apartments for $13 million, according to a Friday news release.

The 20-acre, 182-unit Parkside Drive complex was listed for sale two years ago. The transaction closed Monday, according to public documents.

The buyer, New Standard Equities, plans to spend $3.5 million upgrading the grounds and World War II-era buildings.

Planned improvements include new paths, signage, landscaping and gazebos. New façades will “evoke the vibe of a 1940s village,” according to the release. Interior updates will include hardwood flooring, new cabinetry, appliances, paint and countertops.

New Standard Equities executives were attracted to Bremerton’s strong military employment base.

“Furthermore, this property is in a prime, irreplaceable location, offering residents beautiful, unobstructed views of Puget Sound,” CEO Edward Ring said in the release. “It is also near great dining and entertainment, and a short walk to the ferry.”

Bremerton Gardens includes 113 one-bedroom apartments, 63 two-bedroom apartments, five three-bedroom apartments. The complex is served by 242 parking spaces and features a laundry center and dog park.

Redwood-Kairos Real Estate Partners supplied joint venture equity for the transaction, according to the release. Freddie Mac provided financing through CBRE, and Jim Jensen and Kenny Dudunakis of Berkadia represented both buyer and seller in the sale.

Bremerton landlords are enjoying a hot rental market this year. The apartment vacancy rate for Bremerton was about 2.6 percent at the end of 2015. The average apartment rent in Kitsap increased 15 percent in 2015, according to Apartment Insights Washington.

Bremerton Gardens wasn’t the first major apartment complex to change hands this year. In January a Seattle real estate firm bought Bremerton’s Admiral Manor apartments for $5.83 million.

New Admiral Manor owner wants to help ‘revitalize’ Bremerton

Tad Sooter

As we reported in our Friday paper, tenants of the Admiral Manor apartments in Bremerton are being evicted by a new ownership group, which plans to renovate the complex.

The property was bought at the end of January by Project S12 LLC., an affiliate of The Stratford Company in Seattle.

Nobody at Stratford responded to my requests for comment before our print deadline Thursday, but I did receive an email from CEO George Webb on Friday.

This was Webb’s statement on changes at Admiral Manor:

“We are planning to make significant and necessary improvements to the property. We believe this will be a benefit to the community and are excited to help revitalize this part of the City.”

We’ll continue to follow this story. If you’re an Admiral Manor resident and want to discuss the situation, you can reach me at tad.sooter@kitsapsun.com or 360-475-3783.

Kitsap apartment rents up 15 percent in 2015

Tad Sooter

real2_25729917_ver1.0_640_480

Rent for apartments in Kitsap surged 15.4 percent in 2015, according to Tom Cain of Apartment Insights Washington.

The average rent per apartment unit in the county was $1,071 in the fourth quarter of 2015, an increase of $143 from the same period of 2014.

Apartment vacancies eased slightly to 3.44 percent in the fourth quarter. Vacancies are still much lower than in years past.

The market was tightest in Bremerton, where about 2.64 percent of apartments were vacant. About 4.12 percent were available in the Bainbridge Island/Poulsbo submarket.

Apartment Insights collects its numbers by surveying apartment complexes with 50 or more units.

NOTE: A reader asked me to better define what the term “unit.” In this case it refers to any apartment, regardless of the number of bedrooms. The average per-unit rent is simply the average rent for all apartments in the area.

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

Kitsap county rental trends
Create your own infographics

$38M apartment transaction tops recent commercial sales

Tad Sooter

madison — Wellington apartments, Silverdale

A Los Angeles corporation bought two Silverdale apartment complexes in September for a combined $69.5 million.

Those transactions topped the list of commercial sales in Kitsap County in for August and September (you can see my July roundup here).

A total of 35 commercial parcels sold in August for a combined $10.23 million, according to county assessor’s records. In September, 12 parcels sold for $74.3 million, buoyed by the Silverdale apartment transactions.

Here’s a look at some of the notable commercial sales from August and September:

Wellington apartments, Silverdale — $38.25 million

Sale date: Sept. 24

Assessed value: $19.99 million

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

Description: A roughly 231,000-square-foot, 17-building apartment complex on 11.3 acres off Randall Way, accessed by Kensington Lane.

Notes: Formerly called Madison the Wellington. Built in 1988.

Ridgetop apartments, Silverdale — $31.25 million

Sale date: Sept. 24

Assessed value: $18.12 million

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

Description: A roughly 200,000-square-foot, 25-building apartment complex on 12.5 acres off Ridgetop Boulevard, accessed by Voyager Lane and Shipside Lane.

Notes: Formerly called Madison Ridgetop. One of several large complexes of Ridgetop Boulevard. Built in 1989.

Woodcreek apartments, Poulsbo — $3 million

Sale date: Sept. 8

Assessed value: $1.53 million

Sold by: Woodcreek Associates to Poulsbo 40 LLC.

Description: A 14-building apartment complex on 4.8 acres of Hostmark Street, across from Poulsbo Middle School.

Notes: Built in 1984. Buyer is based in San Diego.

Twelve Trees building, North Kitsap — $2.23 million

Sale date: Aug. 11

Assessed value: $1.64 million

Sold by: Jackson Brothers LLC. to Grundsund Property Co.

Description: A 21,000-square-foot building in Twelve Trees Business Park off Pioneer Way.

Notes: Headquarters for international marine apparel and gear company Grundéns. It appears Grundéns just bought the building. Continue reading →

New plan for Silverdale waterfront development

Tad Sooter

A new proposal has been submitted for Bucklin Court, a planned development on the Silverdale waterfront, just east of Silverdale Beach Hotel.

Bucklin Court was initially designed as a three- to four-story, mixed-use development with up to 13 apartment or condominium units. The development would have also featured 4,500 square feet of retail space and 3,700 square feet of restaurant space.

A proposed revision to the performance based development, submitted to the county Oct. 5, would increase the number of residential units from 13 to 30 and eliminate the retail and restaurant spaces.

A preliminary site plan for the revised Bucklin Court proposal shows a mix of one- and two-bedroom units, served by about 30 surface parking stalls and underground parking. Other planned amenities include kayak storage and an entry garden.

The applicant Daybreak Development, LLC. of Belfair. Daybreak Development bought the 1.33-acre property in 2014 for $1 million, according to assessor’s records.

A hearing for the proposal is tentatively scheduled for Dec. 10.

Bucklin Court preliminary site plan by Tad Sooter