Masudur Khan purchased the Gilbert Block Building late last year. This week he announced another downtown investment with the purchase of Bagels by the Sea, the iconic bagel shop at 210 S. Holladay Dr. in Seaside.

The seller was Seastar & Associates LLC. Kathryn and Tracey Johnson are members, said broker Cheryl Johnson with Realty One Group Prestige.

The sales price was $1.2 million. The sale closing date was Jan. 19.

“I just got it because I liked it,” Khan said. “The food is good. We’re not changing anything, just hoping to give you a little bit better experience.”

For the former owners, the goal was always more than simply selling a prime piece of real estate and a much-loved business, Cheryl Johnson said.

“The ideal buyer was someone invested in the community who would continue the Seaside institution of their family friendly bagel shop benefitting locals and visitors alike,” she said. “With strong local ties and his passion for Seaside, Masudur Khan was the perfect candidate. The former owners can now rest easy having left the business in his capable hands. It is truly a win for everyone, especially the community.”

Khan helms Khan Properties and owns and manages hotels and restaurants in the Pacific Northwest. His wife Taslema Sultana operates the Gilbert Inn and the Inn at Haystack Rock. Khan is the past chairman for the Oregon Restaurant and Lodging Association.

Among projects, the 36,000-square-foot Gilbert Block Building, at the corner of Broadway and Holladay, will feature a 25-room luxury hotel on the second floor. Sold for $3.1 million, the hotel is scheduled to open in 2023.

Multiple residential and business developments from Khan Properties are underway along South Holladay Drive, including plans for high-end riverfront housing.

Khan also plans a new 78-unit one- and two-bedroom apartment building south of Avenue U on U.S. Highway 101, which he calls “Dreamcatcher.”

At Bagels by the Sea, all bagels and sandwiches are made on-premise. Plans include more staff, an expanded menu, more days and hours of operation.

With some interior renovations, landscaping and touch-ups, Khan described his goal to add “a little bit more energy, have a vibe, a new look. We’re trying to make it a little more energetic, a more fun place.”

Store manager Asrar Farooqui, a business analyst with Khan Properties, arrived from Hyderabad, India, in 2019, with a background in information technology major incident management.

The first time Farooqui ate a bagel, it was in Seaside.

“I come from India — bagels are not ‘things’ there,” he said. “Mostly I’m trying to understand what they are doing right now. This is learning, and at the same time, working for the business.”

After 13 years, Masudur Khan, has withdrawn as a member of Seaside Lodging Hospitality LLC, Doel Hospitality LLC, and City Center Hospitality LLC, which operate the Inn at Seaside, River Inn, and the SaltLine Hotel. Khan will focus on new business ventures in real estate development and hospitality as the founder and CEO of Khan Properties Group.

Khan Properties focuses on a hybrid model of housing and hospitality specializing in renovation and expansion of existing properties as well as new construction projects in the Pacific Northwest. Khan Properties Group has expanded its real estate portfolio into retail and food and beverage. Khan and his group are exploring partnerships with nationwide companies to further innovate and expand the residential and hospitality offerings in the area. Current projects and ventures include Gilbert Block in Seaside, three multifamily developments in Seaside and the Ocean Crest Resort in Moclips, Washington.