Bay Street apartments in the works, property cleanups ongoing
Published 1:30 am Thursday, January 15, 2026
Improvements to Bay Street are underway with the new year. A residential complex is under construction, as well as the demolition and cleanup of other waterfront properties in downtown Port Orchard.
The new 39-unit waterfront apartments northwest of the intersection of Port Orchard Blvd and Bay Street are currently under construction. The facility in downtown Port Orchard will include a public waterfront path and cafe, enclosed parking, ground-floor retail, and a roof lounge space.
Weddermann Architecture, The BJC Group, and property owner Ali Kashi are working together on the four-story, mixed-use building. The property was formerly home to Cheers Bar and Grill and The Lighthouse Restaurant, which was demolished in 2023.
The building at 429 Bay Street was designed to be both energy efficient and comfortable for tenants. “Luckily, Washington State has a very robust energy code, so the building will be very energy efficient and we used high-quality materials to avoid having to repaint every few years and create a long-lasting structure that won’t end up in a landfill any time soon,” said architect Jennifer Weddermann. “With the shape of the site defining the building, we have a somewhat triangular floor plan, but we tried to play with the angles to break the mass of the building down and allow for maximum private balcony space with views.”
The waterfront is a staple of Port Orchard. The city has always been looking for ways to improve waterfront access for its residents. With the new mixed-use building, Weddermann took this community need into consideration. “The path that wraps the building on the water side is open to the public, to allow for pedestrians to enjoy the water. There was a 75-foot setback from the water’s edge to create space for plants and hopefully some wildlife to populate that zone,” Weddermann said.
In early December, The BJC Group posted an announcement on social media. “We’re now siding the final exterior wall. A power line relocation had us paused for a bit, but with successful coordination with Puget Sound Energy (PSE), we’re moving forward and excited to keep this build growing,” The BJC Group said. As of now, the 39-units are expected to be completed by May.
“It’s exciting to see the 429 Bay Street project progressing. These new residents will help activate and stimulate economy in our downtown,” Port Orchard Mayor Rob Putaansuu said.
The Port Orchard waterfront has recently had other sites undergo construction as well. 521 and 525 Bay Street, which have been owned by the Port of Bremerton since 2021, were recently under cleanup due to contaminants found in the soil. The properties, which used to house a gas station, had traces of benzene, diesel, and petroleum.
The Washington State Department of Commerce and the U.S. Environmental Protection Agency approved grants to fund assessment and cleanup of the properties in 2023. Cleanup and preparation of the properties for future development plans to be completed in May.
The Capital Improvement Plan for the city of Port Orchard is a series of projects along Bay Street, redeveloping and improving land. This includes construction of the Community Events Center in 2027, marina lift upgrades, which are already complete, and the Highway 166/ Bay Street reconstruction project beginning in April, along with other city improvements further inland in Port Orchard.
“Downtown Port Orchard is an older district that has been stagnating for decades. However, its waterfront location presents a huge opportunity for redevelopment,” the project description says on the city’s website.
