A Bellingham supermarket’s land is for sale, and the state wants to be its landlord

A Bellingham supermarket is for sale, and the state Department of Natural Resources is hoping to acquire it as part of a land swap with its current owner.

A public meeting is planned in December for the proposed deal, which would see the DNR trade a vacant commercial building it owns in Issaquah for the Sehome Haggen site, according to a DNR press release.

“We’re interested in managing that property and (the Haggen building owner is) interested in that property we own in King County,” DNR spokesman Kenny Ocker told The Bellingham Herald.

“It would remain a Haggen” and the state would earn revenue as its landlord, Ocker said in a phone interview.

“We want the supermarket to continue to thrive,” he said.

Ocker said the land transfer is a “significantly smoother process for us” than a regular real-estate transaction but it still requires a hearing and public comment.

A public presentation is planned for 5:30 p.m. Thursday, Dec. 14 in the Mount Baker Room of the Four Points Sheraton Hotel, 714 Lakeway Drive. Comments can be submitted via email to exchanges@dnr.wa.gov through Dec. 28.

Leasing commercial property provides revenue and funds the Common School Trust, which supports K-12 school construction statewide, according to the DNR statement.

“We have a whole host of commercial properties across the state that we lease for income. We use those because they provide steady revenue throughout the year. It helps diversify our portfolio other than timber sales,” Ocker said.

According to the DNR statement, the Haggen site is owned by Bellingham Marketplace Associates Limited Partnership and Briar Development Co.

Whatcom County Assessor Rebecca Xczar said the Haggen building was valued at $10 million and the adjacent parking lot $448,000, according to 2023 assessments. County records show the owner as NNN OPP OWNER VI LLC of Delaware.

Ocker said the site was being appraised and that a final deal was several months away.