Bellevue officials have granted approval for the design of two five-story buildings, marking a significant boost to a mixed-use multifamily project planned for a prime downtown location. The development will be situated on a spacious 2-acre site, with the buildings set to rise atop an existing parking garage. This long-awaited project, located at 10850 NE Eighth St., has been in the pipeline for seven years and encompasses 312 apartments along with retail spaces, according to a recent report by the Puget Sound Business Journal. Positioned between the US Bank Plaza and Plaza Center office buildings, the mid-block site holds great potential for future residents and businesses.
Tejal Pastakia, a Seattle-based developer and a member of the joint venture spearheading the project, expressed her enthusiasm for the upcoming groundbreaking. The joint venture also includes Keppel Pacific Oak Pacific US REIT (KORE) from Singapore, which owns the land. Pastakia is tasked with securing the necessary debt and equity for this market-rate development. She noted that the current financial climate presents significant challenges in terms of finding financing on reasonable terms. Nevertheless, the team is actively engaging with the market to secure the necessary funds.
Originally planned as a high-rise structure, the economic feasibility of such a design proved unviable, according to Pastakia. Instead, the decision was made to construct the new buildings on top of the existing parking garage. This approach adds complexity to the project, requiring careful coordination and engineering expertise. The construction process will involve the removal of the top level of the approximately 1,170-stall garage, resulting in a loss of 300 parking spaces. The developers have submitted this information to the city as part of their proposal.
Encore Architects has been entrusted with the design of the project, while Compass Construction has been selected as the construction firm. Pastakia noted that the approval process took longer than anticipated but expressed satisfaction with the successful outcome. She emphasized the timing of the construction, highlighting the favorable conditions in Bellevue and the Puget Sound region as key factors contributing to their decision to proceed.
Pastakia + Associates recently completed the construction of another Bellevue development called Surrey on Main. This project delivered a six-story, 125-unit property located at 10777 Main St. in Bellevue’s downtown core. The company is actively pursuing additional opportunities in the city, according to Pastakia who emphasized her company’s strong belief in the potential of Bellevue and the Puget Sound region.
According to a recent report by Kidder Mathews’ Simon Anderson team, the Eastside remains a stable and thriving market for apartments in the region. Rental rates have experienced a 2 percent to 3 percent increase over the past 90 days, with expectations of continued growth during the third quarter and a robust leasing season. While buildings with 50 or fewer units have maintained a steady vacancy rate of 5 percent, larger properties have seen a 1.5 percent increase in vacancy over the past year, reaching 7 percent. This uptick in vacancy is likely attributed to the opening of new buildings, as reported by the team.
