PORT ANGELES — An Olympia real estate company, operating under court order, recently took control of an office complex at 1601 E. Front St. that houses the Clallam Conservation District and Indian Health Services, among other offices.
No changes are expected for tenants.
A Thurston County Superior Court judge Dec. 2 appointed The Rants Group as receiver to be the property manager and leasing agent for the Port Angeles building and nine other office buildings — occupied mainly by federal agencies — in Lacey, Olympia and Shelton, The Olympian reported Wednesday.
The property fell into default, and the lender, Wells Fargo, asked Superior Court to name a receiver, The Olympian reported.
The Rants Group plans to hold onto existing tenants, including America’s Best Optometry, and will market two vacant offices in hopes of finding new occupants, company President Pat Rants said Wednesday.
“We are working very hard to keep the tenants,” he said.
Company property manager Alan Aikins was to meet Wednesday for the first face-to-face sit-downs with the existing tenants, Rants said.
“I don’t expect any changes for the tenants,” Rants added.
The Conservation District is among a suite of offices occupied by the U.S. Department of Agriculture Services Center, which includes the Natural Resource Conservation Service and the North Olympic Peninsula Resource Conservation & Development Office, and USDA Rural Development.
“We are staying until we are told to move,” said Phil Eggman, a spokesman for USDA Rural Development.
Rants said the leases “are running out at about this time” but are being renegotiated.
The Rants Group will attempt to find a new buyer for the building.
A tenant called The Rants Group before the receivership was granted, “saying, ‘Can you help us? We’ve got roof leaks,'” Rants said, adding that contractors are being lined up to do the work.
“We hope they find out pretty quickly that things are better now because we have the money to take care of the buildings the way they should be taken care of.”
The properties were owned by a branch of Prium Cos. of Tacoma, believed to be one of the state’s largest landlords of state agencies, The Olympian reported.
A Prium representative did not return calls for comment Wednesday.
The Port Angeles property contains two brick buildings on 0.92 acres on Front Street next to the former Mickey’s Casino, which shut down in October 2009.
The buildings are a combined 9,560 square feet. The value of the property and buildings is $1.4 million, according to the Clallam County Assessor’s Office.
The residential market began having troubles three years ago, but “a lot of those problems are starting to get worked out,” Rants said.
“The commercial market is in severe recession,” he said.
“It usually follows the residential market. Vacancies are higher, there are fewer jobs out there, and people don’t need as much space, whether it’s for office or retail.
“From our point of view and the bank’s point of view, we want as many tenants as possible.”
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Senior staff writer Paul Gottlieb can be reached at 360-417-3536 or at paul.gottlieb@peninsuladailynews.com.
