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This week billionaire Paul Allen finally sold a 292-acre island in the San Juans that had been on and off the market since the go-go days of 2005.

Listed in 2005 for $25 million and slashed to $13.5 million in 2009, Allan Island sold Dec. 20 for a mere $8 million, according to data from the Northwest Multiple Listing Service.

The island — named after a Navy hero, not the Microsoft co-founder — is southwest of Anacortes and west of Burrows Bay.

It’s accessible only by private plane, boat or float plane. The island has a “log-style home for caretakers quarters” and is made up of 44 tax lots, according to a listing by Windermere Real Estate Orcas Island.

“The vision for this property is it will be a small community for good friends and family,” said Tere Foster, a Windermere real-estate agent based in Bellevue who represented the undisclosed buyer.

Foster said the buyer, who is from the Seattle area, envisions 10 to 12 homes on the island.

The buyer purchased Allan Island through AI Project, a recently formed limited liability company whose managers and directors have not yet been reported to the Secretary of State’s Office.

Wallace Gudgell, the Windermere agent who listed the property, said this sale was an unusual one in the three decades he’s been selling islands in the Pacific Northwest.

Gudgell said it was on the market for nine years and in escrow five times.

In this case, “the seller was concerned with what they wanted to do with the island,” he said.

Because of the nature of secondary-home markets, island values plunged more than 50 percent during the Great Recession and recently hit bottom, Gudgell said.

In 1992, Allen bought the island to build a vacation home. Four years later, he bought a large Sperry Peninsula site on Lopez Island for $8 million. He much preferred that 387-acre site to Allan Island, Gudgell told The Seattle Times in 2005.

Material from Seattle Times archives was used in this report.

Sanjay Bhatt: 206-464-3103 or On Twitter @sbhatt