Tag Archives: apartments

Commercial real estate roundup: Church sells development land in Silverdale

Prime Silverdale development land in changed hands in August when Newlife church sold its 8-acre property on Clear Creek Road to The JWJ Group of Silverdale for $3.75 million.

Newlife bought the parcels in 2008 with plans for a Central Kitsap campus. The church is now building a worship and training center in the former Silverdale Regal Cinemas building.

The Clear Creek sale was among a number of high profile commercial real estate transactions completed in August and September. Some we’ve already written about, like the sale of undeveloped land in College Marketplace and the former American Marine Bank headquarters on Bainbridge.

But there were still plenty of deals to catch up on. Here’s a look at other major commercial sales from August and September with details from the county assessor’s office and additional sources:

College Marketplace, Poulsbo — $8.22 million

Sale date: Aug. 31

Sold by: MUFG Union Bank to Olhava Investment Group LLC

Description: More than 60 acres of development land in Poulsbo’s College Marketplace master plan area, zoned for a mix of business park, commercial and residential uses.

Notes: The buyer was Hotel Concepts of Seattle, which plans a 110-room hotel on five acres near Home Depot. Land not needed for the hotel is back on the market. Union Bank took over the land in a foreclosure sale last year.

Clear Creek land, Silverdale — $3.75 million

Sale date: Aug. 16

Sold by: Newlife Church on the Peninsula to The JWJ Group LLC

Description: Two parcels totaling 8.6 acres west of Clear Creek Road, just north of Greaves Way and The Trails at Silverdale shopping center.

Notes: Newlife bought this property in 2008 with plans to build a campus there. The church is now building a center near the Silverdale YMCA.

Former American Marine Bank, Bainbridge — $3.65 million

Sale date: Aug. 22

Sold by: Columbia State Bank to Old Mill Place Propertiess LLC

Description: Original American Marine Bank headquarters at 249 Winslow Way. Constructed in the 1940s. Now home to Columbia Bank.

Notes: The property was purchased by islander George Lobisser as an investment. The Columbia Bank branch will remain in place.

Peninsula Glen Apartments, Poulsbo — $2.84 million

Sale date: Aug. 3

Sold by: Ronald and Linea Montplaisir to Pen Glen LLC 1

Description: An apartment complex on five acres on Hostmark Street, east of North Kitsap High School.

Notes: The same buyer purchased the neighboring Woodcreek apartments, and has plans to add 24 units to the combined properties.

Sonic Drive-in, Poulsbo — $2.6 million

Sale date: Sept. 8

Sold by: Columbia Property Managers LLC to SB Poulsbo LLC

Description: A newly-constructed fast food restaurant on 1 acre at the intersection of Viking Avenue and Highway 305.

Winslow Way building, Bainbridge — $2.5 million

Sale date: Sept. 29

Sold by: DLG Leasing LLC to Michael and Darden Burns LLC

Description: An 11,660-square-foot commercial building on 1 acre at 253 Winslow Way West.

Notes: Home to Seattle Children’s Bainbridge Bargains Boutique.

Olympic Place II, Poulsbo — $1.87 million

Sale date: Sept. 26

Sold by: Roben Family Limited Partnership to James Lane C LLC

Description: A 34,000-square-foot commercial building and parking lot on 3 acres at 1050 NE Hostmark Street, east of Highway 305.

Notes: Built in 1984, according to a listing.

Hardware building, Kingston — $1.8 million

Sale date: Aug. 25

Sold by: Kingston Center LLC to HH & Sons LLC

Description: A 14,400-square-foot building on 1 acre on Highway 104, next to the Food Market.

Notes: Home to Henery Hardware. It appears the Henery family just bought the building from owners of the shopping center.

Former Sound Publishing plant, Bainbridge — $1.45 million

Sale date: Sept. 13

Sold by: Sound Publishing Properties Inc. to Day Road Industrial Park LLC

Description: Two commercial buildings on 4.5 acres in the Day Road industrial area.

Notes: The main building once housed Sound Publishing printing presses and the Bainbridge Review newsroom. Now home to Salisbury Woodworking.

Former Frontier Bank, Silverdale — $1.4 million

Sale date: Aug. 9

Sold by: MUFG Union Bank to SKBA LLC

Description: A 14,000-square-foot bank building on 1 acre at the corner of Silverdale Way and Myhre Road.

Notes: One of several Frontier Bank branches acquired by Union Bank when Frontier failed.

Lighthouse restaurant, Port Orchard — $1.39 million

Sale date: Sept. 8

Sold by: 429 Bay Street LLC to Kashi 201 Williams LLC

Description: A 9,250-square-foot restaurant at 429 Bay Street on the Port Orchard waterfront.

Notes: New owner Ali Kashi plans to open a Cheers Bar & Grill in the landmark restaurant building in January.

Robinswood Apartments, Kingston — $1.34 million

Sale date: Sept. 14

Sold by: 17th On High LLC to Kim Pax LLC

Description: An apartment complex at 10434 Highway 104 next to Reliable Storage.

Sunnyslope land, South Kitsap — $600,000

Sale date: Aug. 31

Sold by: Davies Pearson PC (trustee) to Assemblies of God Loan Fund

Description: Four parcels totaling about 26 acres on Victory Drive, near the intersection of Sunnyslope Road and Highway 3, and a duplex on Jones Drive in Port Orchard.

Notes: This was a forced sale. The land was formerly owned by South Kitsap Family Worship Center.

CLICK HERE TO SEE MY COMMERCIAL REAL ESTATE ROUNDUP FOR APRIL THROUGH JULY.

More apartments planned near North Kitsap High School

Tad Sooter

Owners of two apartment complexes near North Kitsap High School plan to add an additional 24 units, according to a site plan review application filed with the city.

The units would be divided among three new buildings on the same property as the existing Peninsula Glen and Woodcreek apartments on Hostmark Street.

More parking and landscaping will be added, according to a notice of application published Nov. 11.

The apartment owners also are seeking to combine the two lots through a boundary line adjustment. The 10-acre property is zoned residential high.

Both Peninsula Glen and Woodcreek recently sold and are now managed by Pacific Living Properties.

The full notice is posted below:

NOA PeninsulaGlenWoodcreekSPR by Tad Sooter on Scribd

Developer shares plans for Rolling Bay project

Tad Sooter

A Bainbridge developer plans to seek approval this fall for a project that will bring new homes, shops and a restaurant to the island’s Rolling Bay center.

Sunrise Square, which came before the city’s Design Review Board in 2015, will be located on Sunrise Drive, just north of the intersection with Valley Road.

Rolling Bay Land Co. owner Lisa Martin said she expects construction to begin by next summer, if permitting goes smoothly. The development could be ready for tenants in by early 2018.

Plans for Sunrise Square include 6,700 square feet of residential space (both detached homes and apartments), 4,100 square feet of commercial space and a 2,300-square-foot freestanding restaurant.

Martin and architect Russ Hamlet, who’ve teamed up on several eco-friendly projects, emphasized energy and water efficiency in the design of Sunrise Square.

Geothermal and solar systems will help offset the development’s energy needs, Martin said.

Buildings in Sunrise Square will feature vacuum toilets that use far less water than even low-flow toilets. Waste will be composted before it’s discharged into the development’s septic drain field.

The western portion of the 2-acre parcel will be left undeveloped as an open space meadow.

Rolling Bay Land Co. is seeking tenants for the future development. Leasing information and more designs are posted below.

Renderings courtesy Rolling Bay Land Co. and Studio Hamlet

Apartment rents keep climbing in Kitsap

Tad Sooter

Average rent for apartments in Kitsap climbed to $1,186 in the third quarter of 2016, marking the 10th-straight quarter rents have increased in the county.

Per-unit rent at large apartment complexes has risen $109 since the start of the year, according to Tom Cain of Apartment Insights Washington.

Port Orchard and Bremerton reported the largest rent increases in the West Sound region in the third quarter.

Vacancy rates remained low in Kitsap, with 4.35 percent of units available.

The market was tightest in Port Orchard where just 3.32 percent of apartment were vacant, while Silverdale’s vacancy rate jumped to 5.21 percent.

Cain said a balanced rental apartment market typically has a vacancy rate of 5 percent.

Here’s a graphic showing apartment rental trends in Kitsap:

Stalled Poulsbo apartment project may be moving again

Tad Sooter

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.

Application filed for Bainbridge Landing development

Tad Sooter

apartments.overview — A view from the southwest corner of the site.

Plans are moving ahead for a 140-unit housing development near the Winslow ferry terminal.

Bainbridge Landing would incorporate 115 apartments and 25 town homes on a 4.7-acre lot on Ferncliff Avenue, just north of the Harbor Square condominiums.

Owners have submitted subdivision and site plan review applications for the project, according to a notice published by the city Friday.

Comments will be accepted for the next two weeks.

The site plan for Bainbridge Landing shows town homes and lofts surrounding a U-shaped apartment building.

A portion of the project bordering Ferncliff Avenue would be set aside for a park.

Olympic Property Group is spearheading the project. Charlie Wenzlau is the architect.

Here’s the full set of plans included in the application:

Tax break was ‘absolutely critical’ to Bremerton apartment project

Tad Sooter

12096541_10206510262029092_907327638897249611_n The 606 Apartments in Bremerton was the first project to make use of the city’s mutli-family tax exemption program, as I noted in a Sunday story.

PJ Santos, whose Lorax Partners company developed the 606, was off on vacation last week when I put the story together, but called Monday to give me his thoughts on the program.

Put plainly, Santos said the apartments couldn’t have been built without the incentive, which exempts to value of new apartment buildings from property taxes for up to 12 years.

“The project would not have happened if we didn’t have the abatement,” Santos said. “It was absolutely critical to make it viable.”

Rents in Kitsap are much lower than in Seattle, but construction costs are just as high. Santos aid the tax exemption, which saved 606 owners roughly $25,000 in 2016, made the project pencil out.

He noted cities are still able to tax the improvements as new construction once the exemption expires. But the delay in taxing the full value provides a much-needed boost for building Bremerton.

“It helps kick start development,” Santos said.

Another big apartment sale in Silverdale

Tad Sooter

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

A 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):

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

Tad Sooter

B0012506365--503284 Average 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:

Kitsap county rental trends
Create your own infographics

91-unit apartment complex approved in Poulsbo

Tad Sooter

One street side elevation — A street-level view of one Arendal apartment building

Poulsbo has given the green light to a 91-unit apartment complex planned for Viking Avenue.

The Arendal Apartments will be built on 7.6 acres just south of the intersection with Highway 305 and up the road from Fish Park. A wetland occupies the east side of the property.

Apartments will be divided among four buildings, each with between 11,000 to 12,000 square feet of floor space, according to a notice of decision issued by the city Thursday.

Plans include 174 parking spaces. About a quarter of the spaces will be under buildings. Access will be from a single entrance on Viking Avenue.

A club house, playground, barbecue area, bicycle storage and dog park are also planned.

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

You can read the full notice of decision below, and find a detailed staff report here (big PDF file).

NOD Arendal