April 26, 2021 8:00 AM
Newmark announces it has completed the sale of Belle Vista Place, a mixed-use, master plan development site on 4.89 acres of land in Bellevue, WA. 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 including office, retail and subterranean parking.
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. The Newmark Capital Markets’ team has advised on and sold 12 office properties in Puget Sound in the last year; investor confidence in the region’s prospects continues to be robust.
“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.”
“Belle Vista Place is a beautifully designed mixed-use development that has the potential to take full advantage of Bellevue’s thriving Downtown core, expanding transportation options and world-class livability,” said Bellevue Mayor Lynne Robinson. “We are excited to see this project become a reality.”
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.
O’Keefe added, “This incredibly designed project will help transform 112th Avenue into a vibrant, major office and residential development corridor.”
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 million, 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 million square feet with an overall vacancy of 6.4 percent, according to Newmark’s 1Q21 report.
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate services, with a comprehensive suite of investor/owner and occupier services and products. Our integrated platform seamlessly powers every phase of owning or occupying a property. Our services are tailored to every type of client, from owners to occupiers, investors to founders, growing startups to leading companies. Harnessing the power of data, technology, and industry expertise, we bring ingenuity to every exchange, and imagination to every space. Together with London-based partner Knight Frank and independently owned offices, our 18,800 professionals operate from approximately 500 offices around the world, delivering a global perspective and a nimble approach. In 2020, Newmark generated revenues in excess of $1.9 billion. To learn more, visit nmrk.com or follow @newmark.
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