X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

BELLEVUE, WA—At a depth of eight stories, or 93 feet, the massive pit for the underpinnings of the Bellevue Technology Center is said to be the deepest ever dug for a U.S. office building. However, for developer Eugene Horbach, it must be looking more like a black hole.

More than a month ago construction came to a halt, sending rumors flying about a falling out between Horbach, owner of Bellevue-based E&H Properties, and his financial partner, Barnes & Nelson Union Partners. Since, DPR Construction, the project’s primary contractor, has filed a lien to the tune of $8.84 million. DPR stands at the head of the line of contractors and subs also looking to get paid. Altogether, claims now total roughly $9.5 million.

With a $22 million bridge loan maturing next month, Horbach is scrambling for financing to continue the 20-story high tech tower. The 357,000-sf glass-skinned Technology Tower sits at the Southwest corner of Northwest Fourth Street and 108th Avenue Northeast. As of last year, Horbach had committed to spending $100 million to develop a total of seven towers of mixed uses on the property.

Now, however, it appears to be a scramble for Horbach just to find the financing to complete the Tech Center.

Horbach is reportedly attempting to solve his financial woes by unloading part of the land he has compiled along Northeast Eight Street, on which he had envisioned a two million-sf office, apartment, hotel and retail development. GlobeSt was unable to reach the developer on deadline to confirm reports the property is available at $175 per sf, or $7.6 million per acre.

A GlobeSt source in the real estate investment community had previously been approached to source loans for Horbach. Speaking on anonymity they say, “The valuations we saw Horbach using to raise money are pretty aggressive. It’s hard to borrow money right now. And, with the market the way it is, who would want to step into land at $175 a square foot. Prices have been coming down. If he’s going to have any luck selling that property, he’s really going to have to adjust his asking price.”

Adding to Horbach’s challenge is the estimated 2 million sf of sub-lease space now on the market. Being on the wrong side of the supply-and-demand picture in Bellevue, the question is whether Horbach will be able to obtain the financing necessary to build his high-tech office tower.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.