Growing numbers of real estate investors and developers from outside the Inland Northwest are finding valueand putting their chipsin the Spokane-North Idaho market.


Spokane developer Walt Worthy, who owns the Davenport Hotel and has made numerous other investments here over the years, says price is the attraction thats pulling them in.


Its a little better buying in Spokane than other parts of the Northwest, he says.


In one recent transaction, Hughes Investments Inc., of Newport Beach, Calif., bought an 8-acre parcel north of the Spokane River just on the Washington side of the Idaho state line, and says it sees the property as a good spot for commercial development.


Hughes Investments manages about 5 million square feet of real estate space, mostly in Southern California. This is the California companys first entry into the Inland Northwest real estate market, although the region has been on its radar for two or three years, says Alan Johnson, the companys senior vice president of development.


Were bullish on whats taking place in that area with its sustained growth, Johnson says.


The state-line property is near the recently announced Pointe at Post Falls development, where Foursquare Properties Inc., of Carlsbad, Calif., is bringing in a Cabelas Inc. store as its first tenant in a 925,000-square-foot retail center it plans to develop.


I think its a great piece of property, Johnson says of the site Hughes Investments bought. Its only better after Cabelas was announced, but we would have bought it regardless of what was happening with Foursquare.


He envisions the site will be a prime spot for a couple of hotels and quality restaurants, and says he now visits the Inland Northwest every two or three weeks to scout for other investments.


We are looking aggressively at Coeur dAlene and Spokane County, he says. We have offers on several things.


Among the other major purchases or developments by developers and investors from outside the region :


Canddle Development Inc., also of Newport Beach, proposed in September the $27 million, 252-unit Forest Creek Apartments on a 9-acre site at 3110 N. Addison.


In April, Canddle proposed a 250,000-square-foot, 287-unit senior housing facility, to be called Vintage at Spokane, on 5 acres at 43 E. Weile. In Coeur dAlene, Canddle plans to build a 170-unit housing complex to be called Falls Creek Apartments along Julia and Marie Streets.


Las Vegas hotelier Douglas Da Silva bought the Ridpath Hotel in downtown Spokane in September for $6.75 million.


Presidio Development Partners LLC, of San Francisco, proposed in June to build a seven-story, 30-unit condominium project, to be called Upper East Falls Condominiums, on the north side of the Spokane River just east of the Flour Mill.


Tullamore Properties LLC, which is managed by Vision First LLC, of Eagle, Idaho, bought a 250-acre parcel between Poleline and Prairie avenues on the west side of state Route 41 in Post Falls. It has proposed mixed-use development there with 900 residential units, retail and office spaces, an assisted-living facility, four parks, and a church site.


Worthy, who asserts that he and his wife, Karen, were once the largest commercial landlords in Eastern Washington, sold half their Spokane holdings in a series of transactions with Prium Development LLC and its sister company, Prium Companies LLC, both of Tacoma, over the last 14 months.


The properties include the Wells Fargo Center downtown, Rock Pointe Corporate Center north of downtown, a parking lot on Wall downtown that Prium Companies plans to develop into a condominium tower, and Trent Plaza in Spokane Valley.


Also, Prium plans to develop a 54-acre industrial park near Spokane International Airport on the West Plains.


I had a nice product and a great group of tenants, Worthy says of the properties he sold to Prium.


Representatives of Prium could not be reached for comment for this story.


Outside investors are starting to realize that the Spokane economy has been comparatively stable, Worthy says.


In the 25 to 30 years Worthy has been doing business in Spokane, he hasnt seen economic peaks such as those seen in the Seattle area at times. Perhaps more importantly, he says he hasnt seen the deep economic valleys in Spokane that hes seen on the West Coast.


Even in the late 80s and 90s, Spokane seemed to keep going right along, he says.


Marshall Clark, of Clark Pacific Real Estate Co., says that for about three years, hes been seeing strong interest from non-resident investors and developers, many of whom are from the West Coast, in buying large chunks of land and commercial buildings here.


Clark, who specializes in commercial real estate, says up to half his business volume involves investors and developers from outside of the Spokane region.


Even though the California real estate market is softening, the Inland Northwest by comparison remains far less expensive, Clark says.


When assets and real estate are less expensive, they have more value for investors, he says. Theres a better return ultimately.


The outside interest might lead to higher real estate prices in the market, but Clark sees that as a positive, saying it creates opportunity.


Money brings jobs, he says. If it didnt, we wouldnt be growing as fast as we are.


Interest from outside investors is strongest in North Idaho, Clark says.


It has more sex appeal, he says. Mountains and lakes are a little nicer, and the community is a little cuter. Many of the outside investors have some seasonal, second homes, he says.


Dave Black, CEO of Tomlinson Black Commercial Inc., of Spokane, says that while North Idaho might be the primary attraction in the region, most people from outside of the area have to fly into Spokane on their way there.


Businesspeople, especially entrepreneurs, who discover the area for its golf and other recreation, end up buying second homes and investing in the area, Black says. Institutional investors follow them.


Home-grown developers, like Coeur dAlenes Duane Hagadone and Spokane Valley native Marshall Chesrown, have turned the spotlight on the Inland Northwest, he says.


Theyve attracted a lot of people who like to get out of the heat in the summer, Black says. A lot of them are involved in real estate.


Mark Pinch, president of Pinch Development & Investment, of Spokane, also says the degree of interest from outside the region is a relatively new trend.


Theres no question it wasnt that way years ago, when you could only sell Spokane property to Spokane people, Pinch says.


In the last 10 years, the area has received positive national publicity for several reasons, and that has helped to draw investments, he says.


The emergence of North Idaho as a major destination has added to the attractiveness of the region, and the rise of the Gonzaga University mens basketball program has helped to keep Spokane in the national spotlight, Pinch adds.


The population, at more than 500,000 for the region, puts the Inland Northwest in a more attractive category for outside investors, he adds. Spokane, Post Falls, Liberty Lake, and Coeur dAlene, viewed as one market, is on the radar screen with another number of investors.


One investment helps lure the next, and potential investors take notice when a name brand, like Cabelas, enters a market, Pinch says.


As soon as investors see they are doing their homework and putting up leases, thats such a stamp of authority, it brings in more buyers, he says.


Contact Mike McLean at (509) 344-1266 or via e-mail at mikem@spokanejournal.com.