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4/28/21
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Tishman Speyer has acquired Belle Vista Place, a mixed-use, master plan development site on 4.89 acres of land in Bellevue, WA. The site is along 112th Avenue Northeast across from a planned light rail station, on the west side of I-405.
Designed by renowned Seattle architect CollinsWoerman, the project will feature a modern, sophisticated and sustainable design, with efficiency and flexibility built into a state-of-the-art mixed-use campus expected to include over 1msf of office space, multifamily residential, retail and subterranean parking.
Strategically located at the eastern edge of the Downtown core, Belle Vista features I-405 Freeway visibility and proximity to the new East Light Rail Station. With substantial work already completed on the design and city entitlements, this Class A project is planned to begin delivery in 2024.
Newmark’s Co-Head of U.S. Capital Markets Kevin Shannon and Executive Managing Director Ken White, in cooperation with Executive Managing Director Tim O’Keefe, represented the seller, PMF Investments with assistance from Vice Chairman Nick Kucha and Executive Managing Director Rob Hannan.
“Bellevue is one of the few pockets nationally where market fundamentals are standing out, validating new spec and office construction,” said Shannon. “The demand drivers are clear in the Seattle Eastside market with approximately one half of the existing office inventory being occupied by FAANG tenants and Microsoft. Capital market conditions for office product on the Eastside are also very strong with a new emerging life science growth engine now fueling additional demand.”
The property is situated in the Bellevue CBD submarket, which is home to Microsoft, Google, Amazon, Facebook, Salesforce and other expanding tech employers. The Bellevue CBD has become the epicenter for office development in Puget Sound thanks in large part to Amazon’s expansion. Vacancy in the Bellevue CBD, currently 5.1%, remains much lower than other downtown markets across the country, according to Newmark Research. Bellevue market asking rents have increased dramatically, reaching $58.44/SF FSG in first-quarter 2021, an increase of 19% over the last two years. Bellevue, where the average home value is $1.1 mil, consists of affluent demographics and continues to experience population growth.
The Eastside, which includes the cities of Bellevue, Kirkland, Redmond, and Bothell, has seen a remarkable increase in investment activity. The average price per square foot for Eastside office sales has risen by roughly 85% since 2015 and asking rents have increased by 17% since first-quarter 2018. The Eastside encompasses 34.3 msf with an overall vacancy of 6.4%, according to Newmark’s 1Q21 report.
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