By Meghan Hall
A major Bellevue-based developer has sold off a key piece of property gearing up for redevelopment—an indication that investors are still bullish on downtown Bellevue despite some questioning how market fundamentals will fluctuate in the coming months. In a transaction that closed on June 11th, West77 Partner sold off an aging office building and parking lot. The buyer was Fana Group of Companies, who paid $26,884,480 for the asset.
Currently, the lot is developed with an office building constructed in 1958 and affiliated parking lot. The building itself totals 17,930 square feet, with the property double in size. Located at 10620 NE 8th Street, the site is slated to be redeveloped as part of Bellevue’s Washington Square Master Development project.
The sale comes after West77 Partners decreased the size and scope of the project in documents submitted to the City of Bellevue in May. Initially, the project was to include two hotels and two residential towers on the property; that configuration has since been changed to a 20-story, 350,000 square foot tower with ground floor uses on the southern portion of the site as opposed to a second residential tower. An eight-story, 210-key hotel just to the north is planned as well.
The plans show that the there are several options for the project’s buildout. The hotel and office could be built simultaneously, the hotel could be constructed first, then the office, or the office could be constructed first, then the hotel latter. If the project does end up involving multiple phases of construction, the timing of the second phase will be determined at a later date.
Upon completion, the project will become a part of the already-finished faces of Washington Square, a more than ten-acre development at the heart of Bellevue. Phase One of the project consisted of 353 condominium suites, 26 townhomes and close to 11,000 square feet of retail. West77 Partners was the developer behind the first phase of the Washington Square project.
The Fanna Group of Companies, founded in 1989, was originally an investment holding company. The firm invests in Class A and B, office, industrial, retail properties and developments such as Plaza 305 and the Key Bank building—both located in Bellevue.
