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Bank foreclosing on Poulsbo commercial land

union.bank.foreclosure
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A bank has begun the process of foreclosing on a 13-acre commercial property near Poulsbo’s Central Market.

MUFG Union Bank filed a complaint in Kitsap Superior Court earlier this month seeking to foreclose on the property and appoint a receiver.

The undeveloped land is located on the east side of 10th Avenue, just south of Central Market (see inset image).

The property is owned by the Hern family, former owners of the Courtesy Auto chain of dealerships on Viking Avenue.

According to court documents, the Herns borrowed $10.3 million from Frontier Bank in 2009. Frontier failed a year later and Union Bank acquired its assets. Union Bank is seeking compensation for $11.24 million in unpaid loan principal, interest and other fees.

All of the Courtesy Auto properties were sold off in recent years. The 10th Avenue parcel is the Hern’s last Poulsbo property.

Zoned commercial as part of the city’s Highway 305 Corridor district, the land has an assessed value of $977,000.

Union Bank is the same institution that forced the sale of undeveloped commercial parcels in Poulsbo’s College Marketplace last year. The bank took ownership of the land after no other bids were entered.

Receivership ends for Courtesy Auto properties

A painful but potentially rejuvenating process has come to an end on Poulsbo’s Viking Avenue.

A Kitsap County Superior Court judge approved a motion June 26 terminating receivership for the former Courtesy Auto Group properties.

All told, six parcels formerly owned by the Hern family have been sold since 2013, fetching about $4.6 million.

The properties were home to a number of Courtesy Auto dealerships, forming the core of Poulsbo’s once-bustling automotive corridor.

Union Bank successfully petitioned the court to appoint a receiver for the properties in 2011, seeking repayment of a $10 million loan made by Frontier Bank to the Herns in 2009. Union Bank took over the loan after Frontier failed in 2010. 

Here’s a look at the Courtesy Auto properties sold and what businesses are there now:

1. Chevrolet building — $1.4 million

imgresSold on: April 10, 2013

Sold to: Christina and Scott Hensrude

Current assessed value: $1.09 million

Description: 1.43 acres with a 16,350-square-foot showroom at 19873 Viking Ave. NW, on the southwest corner of Edvard Street and Viking.

Now home to: Abra Auto Body and Glass.

2. Suzuki building — $375,000

427335_3418875_ver1.0_640_480Sold on: Sept. 23, 2013

Sold to: Janice and Kevin Krieger, and Lisa and Steven Stirrett

Current assessed value: $239,100

Description: One-third acre with a 1,600-square-foot showroom at 19568 Viking Ave., across from the Food Mart and Los Cazadores.

Now home to: A smoke shop and hookah lounge called Up In Smoke. Continue reading →