Seattle local business news and data – Real Estate

January 14, 2022

111-unit waterfront project in Bremerton heading for foreclosure

  • Plans for a nearby 186-unit building are uncertain.
  • The Beacon project, right, is said to be titled and ready to go. The plan for Beacon II, left, looks less advanced.

    Developer Mark Goldberg of MBG Co. announced a pair of apartment projects near Bremerton around five years ago. One, at 1943 Wheaton Way, is now heading for a May 6 foreclosure sale unless a new lender or buyer can be found. Goldberg’s Water Wind & Sky LLC now owes approximately $2.8 million to MGP Beacon Guaranty, which claimed the previous loan.

    The sloping, vacant waterfront site is in Manette, or what locals also call East Bremerton. It’s about 1.3 acres overlooking Dyes Inlet and is a little northeast of downtown. Goldberg acquired it in 2016 for around $375,000. It is now fenced, cleared and leveled. Goldberg said in 2017 that he hoped to find a financial partner and an entrepreneur, then innovate the same year.

    Designed by Veer Architecture, the six-story, 111-unit project began life as Water Wind & Sky; subsequent sales efforts by NAI Capital called it the Beacon. NAI had said about two years ago that it was cleared and ready to go. It was then offered at $3.6 million. Los Angeles-based NAI’s broker did not confirm whether it still has the listing or not.

    Goldberg had previously estimated the cost of the project at just over $25 million; inflation and subsequent increases in material and labor costs would now mean a higher figure. Veer says townhouses were originally considered, before the program moved to a more expensive multi-family proposal. Thus, the plan of the apartment may or may not survive, regardless of the fate of the land.

    Goldberg had also planned a second apartment project a few steps north, also overlooking the water. This, at 2313 Wheaton, was to replace the old Bay Bowl building with a seven-story, 186-unit building. Beacon II seems to be the working title there. Goldberg and a Mercer Island partner assembled these 2 acres from 2016 to 2018 for around $1.8 million.

    There have been no foreclosure notices for this property. The same old NAI sales listing indicated that the flats project, also designed by Veer, had been approved by the City of Bremerton. This project was offered at $6.7 million. The apparently vacant Bay building is still there, with the Rimnam Thai restaurant as its latest tenant. Demolition awaits, although it does not appear that all permits are in place.

    The Cinema Treasures website states that the bay was built by the federal government during World War II to entertain shipyard workers; it was converted into a bowling alley in the early 1950s, with the city as its owner. It passed into private hands during the same decade; there was an addition in the 1960s and the bowling alley ceased in 2002. This was followed by use as a warehouse and restaurant.

    Finally, in downtown Bremerton, at 205 Sixth St., MBG and Veer previously secured all permits for a seven-story, 115-unit project now called Eagle Pointe. (The corner site was once home to the Eagles club.) MBG sold that project last year for $4.8 million to Galena Equity Partners of Boise, possibly with NAI as broker. Unlike the two Wheaton sites, the Eagle Pointe site is in a federally tax-favoured Opportunity Zone; and it’s about a 10 minute walk south of the ferry terminal.

    Pavilion Construction is listed as the contractor, although there are no signs of demolition or construction.

    Brian Miller can be reached by email at [email protected] or by phone at (206) 219-6517.