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
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
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.
Arrowood storage, Port Orchard — $2.5 million
Sale date: Dec. 23
Assessed value: $1.28 million
Sold by: Arrowwood Storage LLC. to Orchard Arrowwood LLC.
Description: A 31,000-square foot storage facility with residence on 4 acres at 6530 SE Mile Hill Drive.
Bucklin Hill parcels, Silverdale — $2.05 million
Sale
date: Feb. 24
Assessed value: $2.15 million
Sold by: Pankaj & Laurie Sharma to Rodney and Linda Parr
Description: Two parcels totaling 2.7 acres on Bucklin Hill Road between Mickelberry Road and Tracyton Boulevard.
There’s a house on one parcel.
Notes: County documents indicate Parr requested a consultation with planners regarding the Silverdale property, but no permit applications have been filed since the sale.
Old Winslow Hardware — $1.73 million
Sale
date: Jan. 11
Assessed value: $1.2 million
Sold by: Storyville Bainbridge Winslow to The Old Hardware Store LLC.
Description: A 6,350-square-foot former hardware store at 240 Winslow Way East.
Notes: The old hardware is being remodeled to house two businesses: A Neapolitan pizzeria called Bruciato and a Realogics Sotheby’s real estate office.
Westbay NAPA building, Bremerton — $1.3 million
Sale
date: Dec. 29
Assessed value: $1.37 million
Sold by: Gary D. Parker to CGLJ LLC.
Description: A 9,800-square-foot retail building on 1.3 acres at 3050 Kitsap Way.
Notes: CGLJ LLC. is governed by partners in Westbay NAPA.
Bond Road medical building, Poulsbo — $1.23 million
Sale
date: March 9
Assessed value: $1.56 million
Sold by: LPSL Corporate Services Inc. to Wells Faro Bank NA
Description: An 8,100-square-foot medical building at the southwest corner of Bond Road and Highway 305.
Notes: This was a trustees sale forced by lender Wells Fargo.
The previous owner was Liberty Bay Properties LLC., a corporation governed by medical providers including former doctor Narinder Duggal and Dr. Manfred Henne.
The group owed about $1.15 million on the property, according to a notice of trustees sale.
Ericsken Ave building, Bainbridge — $954,310
Sale
date: Jan. 25
Assessed value: $638,750
Sold by: Edward and Elaine Kardong to Duncan and Giselle MacFarlane
Description: A 5,550-square-foot office building on one-third acre on Ericksen Avenue, at the intersection with Knetchel Way.
Former Kitsap Bank, East Bremerton — $919,000
Sale
date: March 2
Assessed value: $908,530
Sold by: Kitsap Bank to B P & I Inc.
Description: A 3,580-square-foot former bank branch at 6733 Highway 303, next to Walmart.
Notes: Kitsap Bank closed this branch in 2014. The state approved a recreational marijuana store at this address.
The Garage property, Bremerton — $800,000
Sale
date: Jan. 14
Assessed value: $791,520
Sold by: Richard and Tai Gates to Jack Johnson
Description: Two parcels totaling 1.8 acres and a 7,700-square-foot tavern in Kitsap Lake Junction, west of Red Apple.
Notes: Jack Johnson is owner of The Garage Bar & Grill.
Old Sears building, Bremerton — $549,000
Sale
date: Jan. 21
Assessed value: $573,120
Sold by: Hanley Property LLC. to Sound West Holdings LLC.
Description: An 18,500-square-foot, vacant retail building at 252 Fourth Street in downtown.
Notes: Sound West Group is the development firm behind the Spyglass Apartments. They’ve been buying up properties in downtown lately.
Roxy Theater, Bremerton — $200,000
Sale
date: Dec. 29
Assessed value: $458,720
Sold by: Fairway Fund V LLC to Wesley Larson and Michael Brown
Description: A 1941 cinema at 268 Fourth Street in downtown.
Notes: Buyers are partners in Sound West Group.
Can we have an examination of what would motivate a buyer to pay millions of dollars above the assessed value? Are Canadians, for example, paying in Canadian dollars?
Assessed value has little, if anything, to do with commercial value on the open market.
The assessor’s office does take comparable sales into account when determining commercial property values, but there’s a significant delay between changes in the market and changes in assessed value.