August 2, 2022 9:00 AM
Newmark announces KANON, a proposed 740,000-square-foot two-tower office development, located steps away from the newest Downtown light rail stop, in Bellevue, Washington. The project is expected to break ground in late 2023 for completion in mid-2026.
“We are excited to introduce this thoughtfully designed project that will be a unique offering to the market,” said John Lewis, Co-Founder of Beam Reach Partners. “With an abundance of green space and floor plates that are optimized for tech users post-COVID space needs, KANON will be an attractive option for traditional and technology tenants.”
KANON will feature two towers, each rising 16 stories and totaling more than 740,000 square feet of tech office space. Beam Reach Partners agreed to ground lease the site from Wallace Properties and has filed a new application with the city in lieu of Wallace Properties’ previous submittal.
“We are grateful for the opportunity to build a relationship with Kevin and Bob [of Wallace Properties]. Their reputation speaks for itself but getting to know them personally and working closely to negotiate a deal reinforced the fact that they are the kind of people we love to work with,” said Sam Rabb, Co-Founder of Beam Reach Partners. “Our long-term ground lease was a good solution to maintain the Wallace’s substantial presence in Bellevue – their home and a place that is very special to them – while leveraging our expertise in commercial real estate to design and deliver a product that is ideal for tenants, the city and people of Bellevue and our investors. We look forward to a long-term collaborative relationship with the Kevin, Bob and the City of Bellevue.”
The Gensler-designed development will feature extensive decks and terraces with outdoor green space on every tenant floor, as well as several strategically located “superfloors” featuring oversized outdoor space and programming. The development will also include a bike/pedestrian connection to the nearby light rail, rooftop decks, access to the multi-modal trails along 114th, abundant parking, secure state-of-the-art bike rooms and lockers and a 0.9-acre central park—the largest outdoor green space amenity of any office development project in Downtown Bellevue. The wi-fi equipped park amenity will feature native landscaping, an amphitheater, and variety of outdoor work, social and eating areas. The project will target several certifications including LEED Platinum, Fitwel and Salmon Safe.
Rabb added, “Tenants’ wants and needs are changing in real time. We are focused on delivering a project that meets and exceeds current workplace environment needs, ultimately creating a special, unique space where tenants and their employees are excited to work.”
Located immediately adjacent to Interstate 405 at the southeast corner of 112th Avenue NE and NE 4th Street, KANON’s proximity to the Downtown Bellevue light rail stop offer easy connectivity to the multi-modal trail. Numerous cultural, entertainment, shopping and dining amenities surround the site including Bellevue Downtown Park, Bellevue Botanical Garden, Bellevue Arts Museum, Seattle Marriott Bellevue, Hilton Bellevue, Surrey Downs Park and Bellevue Club.
Newmark Executive Managing Director Jesse Ottele and Associate Director Brendan Soelling have been assigned to lease the forthcoming project on behalf of the developer, Beam Reach Partners.
“We are thrilled to lease this exciting new office project,” said Ottele, “With beautifully designed tech and traditional office space, premier amenities and an unparalleled downtown Bellevue location, we are confident this project will generate strong tenant interest.”
“Gensler is thrilled to be working in Bellevue during this exciting time of the transforming skyline,” said Brian Di Maggio, Senior Associate and Studio Director at Gensler Seattle. “KANON will undoubtedly make a positive impact on downtown and create a prominent gateway on Fourth Avenue. The KANON development is designed to meet the evolving needs of tenants – specifically for more spaces that emphasize health and wellness. The abundance of outdoor access and green space will provide third places where tenants can socialize or have focused time with a sense of safety and wellbeing – something Gensler’s research findings have revealed as one of the most important things employees want. We believe this project will enhance and positively impact the tenant experience, and we’re excited to partner with the Beam Reach to bring the vision to life.”
Seattle’s Eastside office submarket held steady over the second quarter of 2022, according to Newmark Research, reporting four quarters of positive absorption. The overall vacancy rate registered 4.8%, down 20 basis points over the quarter and 170 basis points over the past year. Construction activity continues to thrive on the Eastside with 6.5 million square feet of office space underway.
About Beam Reach Partners
Beam Reach Partners is a real estate development firm focused on institutional-quality projects in Seattle and the Bay Area with over 20 years of combined institutional experience. They specialize in commercial and multifamily opportunities and have a proven track record of identifying well-located sites and working with landowners to unlock value. Over the past 15 years, they have completed over 100 transactions involving over $10bn worth of real estate, including some of the largest and most complex life science, office, apartment, and mixed-use developments in Seattle and the Bay Area. Co-Founder John Lewis was an investment and development professional for 15 years at Goldman Sachs, responsible for sourcing and overseeing large West Coast developments. Co-Founder Sam Rabb oversaw $7bn of large, complex developments across the country for 6 years at Goldman Sachs prior to starting Beam Reach Partners. www.beamreachpartners.com
About Gensler
Gensler is a global architecture, design, and planning firm with 51 locations across Asia, Europe, Australia, the Middle East, and the Americas. Founded in 1965, the firm serves more than 3,500 active clients in virtually every industry. Gensler is organized to support clients at every stage of the design cycle, from initial strategy and design planning through implementation and management, and its designers strive to make the places people live, work, and play more inspiring, more resilient, and more impactful. Unique among design firms, Gensler’s integrated network serves a cross-section of the global economy through the following practice areas: Work, Lifestyle, Community, and Health. www.gensler.com
About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues of nearly $3.1 billion for the twelve months ending March 31, 2022. Newmark’s company-owned offices, together with its business partners, operate from approximately 170 offices with 6,300 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
Discussion of Forward-Looking Statements about Newmark
Statements in this document regarding Newmark that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the effects of the COVID-19 pandemic on the Company’s business, results, financial position, liquidity and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark’s Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.