Daniel Boring, of Insignia Kidder Matthews, says the news is significant when you consider that Kitsap County has roughly 6% of the apartment units across the Puget Sound in King County. He adds investor interest in West Sound multifamily product has increased significantly since development stagnated around about 1997, the increased perceived military strength since the terrorist attacks a year ago and the low vacancy rates the area has enjoyed compared to those in King, Pierce and Snohomish counties.
Built in 1991 and renovated in 1999, the Outlook is located at 12188 Cloudy Peak Lane. Boring brokered the deal on behalf of the seller, FSF Outlook Associates LLC. Bob Nakao, of Westlake Associates Inc. brokered the deal on behalf of the buyer, Friedman Wensman Group Inc.
In April, a local family trust bought the 144-unit Weatherstone Apartments in Bremerton for $6.7 million. In June, Related Capital Company provided $15 million for the development of Viewcrest Village apartments, an affordable housing complex to be located at 3401 Spruce Ave. in East Bremerton.
Despite the economic struggles throughout the Puget Sound, state Department of Revenue statistics indicate that Kitsap County has held its own economically. The Kitsap County apartment market, particularly Bremerton and Silverdale, is experiencing modest growth. According to Dupre+Scott Apartment Advisors, Kitsap County's vacancy rate was 5% as of September 2001. At the end of first quarter 2002, it dropped to 3.1%. Bremerton dropped from a 5.5% vacancy in September to just under 35 in March. Silverdale experienced a similar decrease, falling from 4.1% to 2.7% vacant. In contrast, vacancy rates are increasing in King County -- up from 5.4% in September 2001 to 8% at the end of March.
In addition, the Bremerton waterfront is about to undergo a long-anticipated facelift, with Opus Northwest's project, which will consist of a conference center, hotel, retail center and view apartments. Redevelopment of this area is expected to further improve the county economy, and is stimulating interest in other projects.
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