Richland’s next big development could go here
One of the most prominent vacant sites in south Richland will be listed for sale in about a week.
Nearly 50 acres at Queensgate Drive and Keene Road, near Bethel Church, will be offered for $14 million as a development site for houses, apartments and commercial development.
That could mean up to 36 homes, 360 or more apartments and a neighborhood-level commercial property such as a grocery-anchored shopping center, said Timothy Ufkes, senior vice president for investment real estate for Marcus & Millichap in Seattle.
Marcus and Millichap is listing the mostly bare land on behalf of owner Kerry Watts.
Ufkes said the site could be sold in its entirety to a developer, who would put in roads and infrastructure and either build out the project or parcel off lots to other builders.
Developer challenges
Privately, brokers who aren’t involved with the listing say $14 million could be unrealistic.
The property is well situated, but will be a challenge to develop.
It is zoned by Richland for agricultural and suburban agricultural use, so it would have to be rezoned to allow future development. The land is surrounded by residential neighborhoods.
And whoever develops it will have to contend with the future extension of Queensgate Drive, which ends at Keene Road on the north and picks up on the other side of the property at Shockley Road to the south.
Richland’s transportation plan calls for linking the two sections of Queensgate across the site. The city said it expects to secure the right-of-way when the land is developed.
Just to the north of the proposed development, Richland, the state and Benton County just spent $5 million to widen Queensgate, add bike and pedestrian amenities and create roundabouts at the freeway and at Columbia Park Trail.
Strong housing demand
The effort to sell the land comes as demand for housing is on the rise in the Tri-Cities.
The local economy added 10,000 jobs in the past two years, which is driving demand for housing of all types. About a third Tri-Citians rent their homes, Census figures show.
Pressure on the housing market drove the local apartment vacancy rate to 2.6 percent last fall, according to a biannual survey of landlords conducted by the Runstad Department of Real Estate at the University of Washington.
The survey covered 10,501 units of all sizes with an average rent of $954 per month.
“We can’t build them fast enough,” said Rob Hughes, director of engineering for Chicago-based Jonathan Rose & Sons, which is completing the 640-unit Badger Canyon apartment complex at Kennewick’s Southridge neighborhood.
It may be one of the Tri-Cities’ busiest builders, but Jonathan Rose isn’t looking for additional building sites. Hughes said it is keeping its focus on Southridge.
This story was originally published March 23, 2019 at 3:10 PM with the headline "Richland’s next big development could go here."