Tri-City hotel mogul buys Kolzig mansion for $3.5M
A prominent Tri-City mansion recently sold to a local hotel mogul for $3.5 million.
The new owner of the home built by hockey legend Olie Kolzig is Gurbir Sandhu, president of the hospitality group Ignite Hotels LLC.
Sandhu said he intends to deed the Kennewick property to an LLC that has not yet been formed and will include investors from California.
He called the purchase of the property at 32224 S. 944 PR SE a “no brainer,” as the home came with 95 acres of undeveloped land that could be subdivided into future housing developments.
“The house itself is more than free after you develop the remaining land,” said Sandhu, who said nearby lots on East Badger Road, with less expansive views than his land, are already selling for more than $500,000.
Eleven qualified bidders participated in the auction, said Dan DeCaro, founder and president of DeCaro Auctions International, which handled the sale.
“Four people bid him up to that number. They were aggressive in that as well. They all had the same plans,” DeCaro said.
Sandhu is unsure whether he plans to use the residence as a personal home or as an event center. He said the 15,000-square-foot home would cost about $10 million to rebuild at today’s prices.
The six-bedroom home was built in 2004 by Kolzig and his wife before it was deeded to Hillside Property of Washington LLC for $2.3 million in 2013.
Kolzig is a former NHL goalie player who once played for the Tri-City Americans.
While Sandhu already has civil engineers looking at subdividing the land, he said the home could be ideal for an event center, as he believes the Tri-Cities lacks venues for high-end weddings outside of wineries.
He thinks there could be “untapped demand” for weddings with extended budgets.
“Hotel venues are not in the same league,” he said.
Sandhu owns the Red Lion Hotel Richland, known as the Hanford House, both Kennewick Red Lion properties and Kennewick’s Hampton Inn.
Ignite Hotels is also building a $20 million Residence Inn by Marriott on South Quinault Avenue in Kennewick, expected to open in 2021.
The Horse Heaven Hills property had been listed for $6.2 million earlier in the fall before the auction was held in October, with potential buyers required to bring a $50,000 cashier’s check, as well as a blank check.
The auction was held with no reserve, meaning the home could be sold to the highest bidder, regardless of price.
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