Overview

The Offering

Kidder Mathews, as exclusive advisor, is pleased to present the opportunity to acquire a 2.77-acre redevelopment opportunity on Bel-Red Road, Bellevue, Washington. The property is currently improved with a 32,538 square foot office building completed in 1978. The building is currently 100% leased, however there are no lease expirations beyond 12/31/2019 (unless termination rights are included), providing in-place income prior to redevelopment. Given the recent success of surrounding townhome developments, it is likely the site is best suited for this type of residential development. Preliminary massing studies completed by Baylis Architects indicated a yield of 37 to 42 units depending on unit sizes and utilization of easements for parking.

The property is located within the Bel-Red Corridor which is going through a massive transformation that includes over $13 billion of construction and infrastructure projects. These include the $3.7 billion East Link extension of the Sound Transit Light Rail, a $3 billion expansion of the Microsoft campus, and the $2.3 billion Spring District mixed-use development.

Offering Process

The ownership will set a deadline for a definitive bid date, however reserves the right to accept an offer prior to such date.

Property Overview

Address 13555 Bel-Red Road, Bellevue, WA
Type Office development / investment offering, existing office building
Parcel # 0672100160
Total Lot Size Land size: 120,787 SF
Useable land size: 90,590 SF
Locality City of Bellevue
Zone BR-ORT (Office/Residential Transition)
Existing Structure 32,538 SF
Development Plans Recent rezone to BR-ORT now allows for buildings with a height up to 45' and FAR of 0.75
Parking 140 spaces
NOI $614,611
Potential Townhomes Development 37 to 42 units
Price $14,000,000

Property Details

Executive Highlights

  • Performing Asset – In-Place Income

    Although the highest and best use for the subject property is residential redevelopment, the 2.77 acre redevelopment opportunity offers a developer the advantage of in-place income from a historically successful business park during the pre-development phase.
  • Strong Townhome Demand

    Currently there are two new townhome developments in the Corridor that are having excellent results with pre-sales. GIS Development is nearing completion of Park 12 Bellevue, a 12 unit development adjacent to the property that is 100% sold out. Intracorp is under construction on 49 units at 140th and Bel-Red Road called Avid Townhomes. The development has already pre sold multiple units in its first release. Pricing for both projects is at or near $500 per square foot.
  • Bel-Red Corridor – Explosive Growth

    Currently there are over $13 billion worth of commercial development and infrastructure projects under in various stages of construction. This growth was fueled by the extension of the East Link of the Sound Transit Light Rail that will connect the Seattle to the Eastside and extends through the Corridor to the Microsoft campus in Redmond. In 2009 the City of Bellevue adopted a new zoning code for the Bel-Red Corridor to allow for transit-oriented development with much higher density and residential uses.

$13 BILLION

worth of development projects under construction in the Bel-Red Corridor

EXCELLENT

results with pre-sales from two new townhome developments in the Corridor

Major Bel-Red Projects

East Link Light Rail

$3.7 billion project with expected completion in 2023 with 5 stations for boarding between Overlake Hospital to the Microsoft Campus

Spring District

$2.3 billion mixed-use development including headquarters for REI

Microsoft Campus Renovation / Expansion

2.5 million square foot expansion and 6.7 million square feet of renovation on their campus for a reported $3-4 billion in cost.

Esterra Park

3 million square foot master planned development including office, multifamily, and hotel

12th Place

400,000 square feet of office and 450 apartment units

Zoning Info

Zone BR-ORT
Max FAR 0.75
Potential Uses Retail & office uses / Residential
Highlights Mature, high-demand location / Highly accessible / Abundant amenities within walking distance

Development Potential

  • FAR MAXIMUM & MINIMUM

    Base. Allowed: 0.75 = 90,590 SF
    Max. Allowed: 0.75 = 90,590 SF
    Proposed: 0.63 = 76,146 SF
  • TOTAL TOWNHOME UNITS: 37 TOWNHOMES

    22’ x 38’ = 836 SF x 3 (stories) = 2,508 SF per unit
    2,508 – 450 SF (garage) = 2,058 SF x 37 units = 76,146 SF total
  • MAXIMUM IMPERVIOUS/ LOT COVERAGE

    Allowed: 75% = 90,590 SF
    Proposed: 70% = 84,204 SF (incl. driveways, sidewalks & units)
  • MAXIMUM HEIGHT OF STRUCTURE/ AEG = AVERAGE EXISTING GRADE

    Allowed: 45 feet
    Proposed: 35 feet
  • REQUIRED PARKING SPACES

    Residential required per unit
    Min: 1 stall
    Max: 2 stalls
    Provided: 2 stalls
  • Total Site Area: 120,787 SF (2.77 acres)

Location

Bellevue

Downtown Bellevue has seen a tremendous amount of change over the last quarter century with the population jumping more than tenfold to 13,900 and the number of jobs more than doubling to 51,000. Using regional and state data, the city estimates that by 2035 there will be 72,700 jobs and 22,200 people residing downtown. Based on per capita income, Bellevue is the sixth wealthiest of 522 communities in the state of Washington. In 2012, Bellevue made CNN Money’s list of the best places to live and launch a business. More recently in 2014, Bellevue was ranked as the second best place to live by USA Today. With direct highway access to Seattle via Interstate 90 and State Route 520, Bellevue is a prominent headquarters location with 13 of the state’s 100 largest public companies and nine of the state’s largest private companies. Companies with headquarters in the city include Paccar, Puget Sound Energy, Symetra Financial, Esterline Corp., Coinstar, Eddie Bauer, T-Mobile USA and Microsoft.

Public Transit / Traffic Count Aerial

Nearby Amenities

DEMOGRAPHICS - POPULATION & INCOME 1 Mile 3 Miles 5 Miles
Population 11,136 124,634 259,984
Average Household Income $122,456 $131,536 $141,053
Median Home Value $715,773 $667,076 $692,028
Renter-Occupied Median Rent 55.13% 49.37% 42.28%

Region Overview

The Puget Sound region, the nation’s 15th largest metropolitan area, is known for its strong business climate as well as its skilled workforce. Several factors contribute to the region’s thriving business community, from the prevailing entrepreneurial spirit, to the education levels and skill sets of its work force. Innovative companies attract high-quality workers who typically possess a high level of education. This well-educated talent flows to economic centers, such as the Puget Sound region, for well paying jobs as well as quality of life.

Due Diligence

Please register to go to gain access to the due diligence documents, which includes the offering memorandum.