A new, fully leased 11-story office building in Bellevue’s emerging Spring District has sold for $365 million, according to an announcement today from the building’s developers.
Wright Runstad & Co., Shorenstein Properties and institutional investors advised by J.P. Morgan Asset Management announced the sale of the 343,528-square-foot building — known as Block 16 and fully leased to Facebook — to Brookfield Asset Management Real Estate Fund. Block 16 sits on 123rd Avenue at the corner of District Way.
“The strong sale price of $365 million is reflective of growing institutional interest in the Puget Sound region and Bellevue in particular,” the release said.
It’s the second major real estate transaction to be announced in the Spring District in the last six weeks. In mid-September, Facebook announced it bought REI Co-op’s new 400,000-square-foot campus and about 6 acres of land for $367.6 million after REI opted to sell the site before ever moving in.
Kent-based REI said it sold its entire Spring District property for $390 million, which included 2 acres of undeveloped property sold to Wright Runstad and Shorenstein for $22.4 million.
The Spring District is a transit-oriented development featuring residential and commercial projects centered on the district’s light rail station. Sound Transit’s Eastlink extension is slated to begin service in 2023.
“The Spring District is a leading example of a sustainable community that provides a true balance of live, work, and play,” Andrew Friedman, managing director at Shorenstein, said in today’s release. “This sale underscores just how desirable this type of asset has become for global investors.”
Greg Johnson, CEO of Wright Runstad, said further district expansion includes two more projects that will add 530,000 square feet of office space by 2023, also leased by Facebook.
Even more Spring District space is in the pipeline, he added.
The Spring District includes the University of Washington’s Global Innovation Exchange (GIX), more than 800 residential units, and public open spaces.