Off-Market Office Sale Reflects How Much Bellevue is on Fire
The off-market sale of The Bravern produced strong interest from both domestic and foreign capital; however, the most competitive bidders at the latter stages of the marketing process were all foreign capital sources.
BELLEVUE, WA—The Bravern Office Commons is a 749,694-square-foot class-A asset that consists of two office buildings that are both 100% leased to Microsoft Corporation. It also includes a seven-level subterranean parking garage with approximately 3,134 stalls.
The property recently sold for an undisclosed sales price. The seller was a joint venture of Principal and PNC Realty Investors and the buyer was Invesco Real Estate.
Newmark Knight Frank’s co-head of US capital markets Kevin Shannon, vice chairman Nick Kucha, senior managing director Michael Moll, executive managing directors Ken White, Rob Hannan and Tim O’Keefe, and vice chairman Alex Foshay represented the seller. The buyer, advising a separate account client, was self-represented. NKF’s vice chairman David Milestone and senior managing director Brett Green arranged the financing on behalf of the buyer.
“This trophy asset was strategically marketed to a limited group of targeted investors on an off-market basis,” said Shannon. “The off-market process produced strong interest from both domestic and foreign capital; however, the most competitive bidders at the latter stages of the marketing process were all foreign capital sources, which isn’t unusual in Seattle.”
Built in 2009, the property includes a 12-story 255,171-square-foot building located at 688 NE 110th Ave. and a 23-story 494,523-square-foot building located at 11025 NE 8th St. The property is part of a mixed-use development that includes 305,000 square feet of luxury retail space featuring brand names such as Jimmy Choo and Louis Vuitton, and two high-end residential towers with 455 units.
The Bravern Office Commons is adjacent to the 405 freeway at NE 8th and 112th Ave. NE in downtown Bellevue within Seattle’s Eastside market. It features freeway visibility and is one block from the Eastlink Light Rail, which when completed in 2023, will provide direct access to Microsoft’s world headquarters in Redmond.
Seattle’s Eastside market has grown to be the hotbed for innovation in the business services, software, technology and wireless industries, and is home to companies including Microsoft, Costco, Expedia, T-Mobile USA and Nintendo of America.
“The Bellevue CBD is going to continue to be on fire in 2020,” Shannon tells GlobeSt.com. “We foresee the potential for double-digit rent growth based on the supply/demand dynamics for prospective CBD tenants.”