Thank you for sharing!

Your article was successfully shared with the contacts you provided.

BELLEVUE, WA-The City of Bellevue is negotiating the sale of the 10.74-acre parcel at Main Street and 116th Avenue Southeast that holds Bellevue City Hall, the Leavitt Building and the Police Annex, a total of 170,000 sf of office space.

The would-be buyer–Michael O’Brien of Mercer Island, owner of the Bellevue Lexus dealership–was chosen from among several bidders that responded to marketing by Pacific Real Estate Partners. O’Brien bid $24.69 million for the property, which will be vacated by the city when its new city hall building is ready for occupancy.

A source at the city tells GlobeSt.com the transaction includes a leaseback agreement where in the city will lease the building from the close of sale, anticipated for Dec. 31, 2003, until March 2006. The agreed upon lease rate is $154,322 per month or $10.89 per sf per year). The lease agreement includes a provision for a no-penalty early termination as well as an extension, says the source.

The City of Bellevue is planning to move City Hall into a 330,000-sf building at 450 110th Avenue Northeast that it recently acquired for $27.5 million. The public will have an opportunity to comment on the sale of the property when the Purchase and Sale Agreement is presented to City Council in mid-June. There will be at least one public hearing on issues related to the transaction.

City officials say O’Brien’s offer provides the highest net return for the property and exceeds the assumptions in the finance plan for the purchase and renovations of the city’s new building. O’Brien could not be reached for comment Thursday on what he plans to do with the property, but according to a prepared statement, he plans to use the property at least in part for his business. “Locating a property with enough acreage and the right location is extremely difficult in the city of Bellevue,” O’Brien said. “This acquisition will allow us to expand our company for several years to come.”

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
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper


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 © 2021 ALM Media Properties, LLC. All Rights Reserved.