A historic Kennewick property came to the auction block in late May only to end up back in the hands of a bank, though it won’t be long before it’s on the market again.

Built in 1912, the building at 215 W. Canal Drive was once home to Farmers Exchange, an equipment dealership and repair shop which saw 100 years of business before closing in 2024.

That building, along with the buildings at 35 and 19 N. Benton St. and 205 W. Canal Drive, was foreclosed when owner Christopher Ingersoll failed to pay the lender, Banner Bank, according to a legal notice published in the Tri-City Herald in early April.

A small group gathered outside the Benton County Justice Center in Kennewick for the May 23 auction, where bidding started at $2.1 million, close to the total amount owed on the property. The beneficiary, Banner Bank, submitted a written bid, and when no one else placed a bid, the property reverted to Banner Bank. 

“The whole outcome there is to get a new owner of the property, and for us to recover funds still owing to us,” said Kelly McPhee, senior vice president of communications at Banner Bank. “So, it is our intention to make that property available and we’re in the process of doing that right now, to put it back on the market.”

Historic register

The property is a special one.

In April, the building officially known as the Kennewick Fruit & Produce Company Building was added to the Washington Heritage Register, and as of May 31, it was being considered for listing on the National Register of Historic Places. 

“There’s a lot of history in that building and in that part of town, and so it’s our hope that somebody who really knows and appreciates downtown Kennewick is going to be interested in that building and it’ll have a new chapter and a whole new story out of that building,” McPhee said. 

Banner Bank is actively working to get the property on the market. Stephanie Button, executive director for the Historic Downtown Kennewick Partnership, said the organization has reached out to the bank to support them and connect them with brokers familiar with downtown Kennewick.

The partnership worked prior to the auction to facilitate tours of the building and will continue to be a connector and a facilitator as the property is marketed. 

Finding the right tenant

It’s important that the building be occupied not just by any business, Button said, but one that will contribute to downtown Kennewick’s growth and vision as a walkable downtown and creative arts district. 

That could be a boutique hotel, restaurant, a makerspace or brewing district, she said. 

“This is a great opportunity for infill into an existing historic community, which does not happen very often,” Button said. “There’s lots of opportunity for those who can envision it.”

“By publishing (the property) and making it publicly available, we really are hoping to draw the attention of anybody who has a vision that might be able to take that building and do something wonderful with it,” McPhee said. 

One challenge for prospective buyers might be the cost beyond the property sale. The multiple buildings that make up the property will likely need to be revamped when a new owner comes on, Button said. 

But for those with a long-term vision, the Kennewick Fruit & Produce Company Building’s recent listing on the state and national registers can offer some benefits. Those include eligibility for financial and tax incentives, an incremental property tax program and participation in the historic façade easement program. 

“These buildings are built for legacy, and we look forward to welcoming the next legacy to our community,” Button said.