A 4.11-acre development parcel in the BelRed Corridor just north of Bellevue’s highly anticipated Spring District has hit the market. According to an offering memorandum distributed by brokerage firm Newmark Knight Frank, who is marketing the property on behalf of an entity known as Umbrella Development LLC, the lot will be sold in an “as-is, where-is” condition.
Newmark Knight Frank brokers Tim O’Keefe and Ken White are spearheading the sale of the property. Guidance pricing on the property, located at 1723 127th Ave. NE, was not immediately available.
However, according to public property records, the site last sold just over a year ago in 2018, when Seattle-based Umbrella Development purchased the property from a private investor in Everett for $14 million. The seller had previously acquired the property in 2003 to $3.9 million. At the time of the 2018 sale, the property’s assessed value was just under $5.74 million, show public documents.
The property is currently zoned as BelRed Residential, and land improvements to the site include surface and underground utility access, states the offering document. 1723 127th Ave. NE is also minutes from Bellevue’s downtown central business district as well as two anticipated light rail stations: The Spring District/120th station and the BelRed/130th Station. Both stations are expected to be delivered in 2023 and are anticipated to have between 43,000 and 52,000 riders daily by 2026.
The property is also just outside of the Spring District, a 5.3 million square foot office, residential and retail mixed-use development currently in the works. Major tenants of the Spring District include Facebook, REI and Global Innovation Exchange. Other major employers, such as Amazon, who has committed to development in downtown Bellevue, as well as Microsoft’s world headquarters, are not far away.
At large, the Puget Sound is rapidly expanding and possesses one of the most dynamic economies in the United States, with 11 Fortune 500 companies headquartered in the region. These high-growth, innovative companies — and the industries within which they work — have grown extensively in recent years, and they have brought a plethora of employees and new residents to the region.
According to Forbes, the Seattle and Puget Sound region has been listed as one of the best cities for jobs, and the Brookings Institute has identified Seattle as one of the markets with the highest concentration of workers in advanced industries, next to Silicon Valley.
With the economic wheels churning, Bellevue has emerged as a core submarket in its own right, and the BelRed corridor has become a highly-sought after alternative to Seattle. Throughout Bellevue, there is currently about 5.75 million square feet of office space in the development pipeline, of which two-thirds is pre-leased, as well as 1,910 residential units.
More than 20,000 employees are expected to move to Bellevue over the next several years, and both office and residential market fundamentals remain strong. Currently, peak asking office rents in Bellevue come in at $55 triple-net, with Class A vacancy sitting at 4.1 percent. Eight years of positive net absorption, as well as eight active requirements totaling three million square feet continue to drive the office market.
Bellevue’s population also continues to flourish, growing four times over since the beginning of the market cycle in 2010. 80 percent of Bellevue’s population has at least a Bachelor’s degree, while the average household income sits at more than $140,000 annually, 87 percent higher than the metro area, sustaining demand for both rental and for-sale product throughout Bellevue.
Newmark Knight Frank did not respond to The Registry’s request for comment.