COOS BAY — An historic Coos Bay landmark has been purchased by a Washington developer who hopes to bring in more retail and restaurant business.

The Tioga Hotel and Koski Building exchanged hands Wednesday for a reported $2.63 million, an official familiar with the agreement said. The new owner, Loren Ness, of Stanwood, Wash., said he plans to relocate to Coos Bay in December for several months to plan the future for the two downtown buildings.

He currently owns property in the Seattle area, but this marks the first time he has purchased property in Oregon.

“I happened upon (an advertisement) and I loved the look of the building,” he said by phone on Friday. “I like old architecture period. I have a friend who owns a similar building in Wenatchee, which helped prompt me.”

Both the nine-story Tioga Hotel and the three-story Koski Building were previously owned by Merlin Wisby. When he died in November 2006, the estate was taken under the stewardship of Manuel Hernandez, an attorney in Bandon. Hernandez contacted GVA Kidder Mathews, a commercial real estate broker in Portland, that began a nationwide search for a buyer.

Jordan A. Carter, an associate broker, said the properties were listed in May for $2.95 million. The notice brought in responses from hotel developers and condo converters, he said. But the developers who wanted to make significant changes were turned off by the size of the Coos Bay market as well as construction limitations imposed by the National Historic Registry, which includes both buildings.

“It didn’t really pencil in for them,” Carter said.

But Ness was willing to take the plunge. Unlike some of the other prospective buyers, he said he plans to continue to operate both buildings as apartment complexes. He said he would not raise rates without making changes first.

“I think the rents are fair,” he said.

But he said he would focus on bringing new businesses to the ground-level floors of the two buildings. He said he was pleased with the arrival of Fiction 101, a bookstore that recently relocated from North Bend and has taken up storefront space in the Koski Building. Now he wants to fill the other vacancies on the first floor as well as empty spaces on the second floor of the Tioga.

“I really want a strong retail or restaurant presence,” Ness said. “That strip in downtown is awesome until you get to the Koski building.”

Filling up space on the ground floor would be welcome news to Harry Golub, who owns Binoculars Etc., in the Tioga. In his cozy office space for three years, Golub said he has been content with the location and the treatment he has received from management. But sharing space in a building with “For Sale” signs is something he would like to see come to an end.

“I wish they’d rent the space next door,” he said. “Having an empty space is not a good thing for the store.”

Built in 1920, the Koski Building has 19 apartment units on top of its two retail spaces. It was placed on the National Historic Registry in 1994. It connects with the Tioga Hotel, which was built in 1926. The Tioga has 51 apartments — most of which are occupied Carter said — as well as 20,000 square feet of retail space. It was placed on the National Historic Registry in 1984. Ness’ purchase also includes the parking lots behind the two buildings and a gravel parking lot on the west side of South Second Street.

Ness said he plans to make major renovations, though he is not sure what form they will take or when they will begin. But he does plan to apply for a facade grant from the Coos Bay Urban Renewal Agency. He also expects to make maintenance improvements soon.

“I’m not fond of the color, and the Koski Building windows need some work,” he said. “But I’m excited about improvements that can be done.”

First on his list Getting the neon letter T on the Tioga sign back in operation. He said he plans to have someone examine it on Monday.