PORT ANGELES — From the outside, you can’t tell that anything about First Fed branches in Clallam and Jefferson counties has changed.
It is still “proudly PNW,” but last year, the properties were purchased by an Atlanta-based company that then sold them to a real estate investment trust.
According to SEC filings, in May 2024, First Fed and its parent company, First Northwest Bancorp (FNWB), sold its five Clallam County offices and one Jefferson County branch to MountainSeed Real Estate Services for $14.7 million.
MountainSeed sold the leases to Fortress Investment Group, an investment management company that is owned by Japan’s SoftBank Group.
First Fed still owns its property at 139 W. First St. in Port Angeles and its corporate headquarters at 105 W. Eighth St. in Port Angeles.
The pre-tax gain of $7.9 million on the sale was recorded as non-interest income for the second quarter of 2024.
Concurrent with the sale, First Fed and MountainSeed entered into an agreement in which the bank would lease each of the properties back from the real estate company for a total of $130,000, or $1 million in 2024. Each of the lease agreements is for 15 years, and each has one 15-year renewal option.
First Fed expected the yearly increase in rent to be partially offset by eliminating $204,000 in annual building depreciation expenses.
In addition, the sale-leaseback agreement created $12.2 million in assets and liabilities, which First Fed also was able to record for the second quarter.
The agreement was signed by former Chief Strategy Officer and general counsel Chris Riffle, who left First Fed on Aug. 8, and Chief Operating Officer Geri Bullard, who became interim Chief Executive Officer upon Matthew Deines resignation in July.
In June, First Fed consolidated business centers in Bellevue and Fremont into a single operation that resulted in a one-time $599,000 write-off of tenant improvements, and an annual rent savings of $130,000.
The sales of the branch properties came after First Fed had entered into business with Water Station Management, which in August was charged by the SEC with running a Ponzi scheme and by the Department of Justice with securities and wire fraud.
Earlier this year, First Fed settled in U.S. District Court in Tacoma with Water Station Management investors who claimed the bank knew about the company’s alleged fraud, while not admitting wrongdoing.
In June, 352 Capital filed suit in King County Superior Court accusing First Fed of conspiring with Water Station Management. It is seeking $106 million in damages.
First Fed has denied all charges related to Water Station Management and its owner, Ryan Wear.
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Reporter Paula Hunt can be reached by email at paula.hunt@peninsuladailynews.com
Properties sold
First Fed properties sold in 2024
Clallam County
Port Angeles, Eastside branch, 1603 E First St.
Port Angeles, Sixth Street branch, 227 E. Sixth St.
Sequim Branch, 333 N. Sequim Ave.
Sequim Village branch, 1201 W. Washington St.
Forks branch, 131 Calawah Way
Jefferson County
Port Townsend branch, 1321 Sims Way
