By Meghan Hall
Global investment firm Oaktree Capital Management in partnership with Hines has made a sizable investment into the Bellevue multifamily market. In a deal that closed last week, Oaktree purchased the Main Street Flats apartment complex for $232.6 million, according to public records. The seller of the property was Alamo Manhattan, a Dallas, Texas-based developer.
The asset is located at 10575 Main Street in Bellevue. It consists of 425-units featuring a mix of studio, one-bedroom and two-bedroom apartments along with a rooftop terrace with city views, a state-of-the-art fitness center and a resident lounge. The ground floor features 12,000 square feet of retail space.
“The Eastside office market, including downtown Bellevue, is experiencing unprecedented growth from many of the world’s largest technology tenants, and this influx of new jobs is driving residential demand in premium locations such as Bellevue,” said John Coombs, director at Hines, in a statement. “We have long held a strong conviction for the Bellevue submarket and believe our timing, with all of the momentum on the Eastside, couldn’t be better.”
“We continue to seek high-quality assets in strategic markets with strong fundamentals that have the potential to provide outsize rental growth for our income-focused core plus strategy,” said Mark Jacobs, managing director and co-portfolio manager with Oaktree in a statement. “We believe Main Streets Flats is well-positioned to benefit from the growing job base in Bellevue and the surrounding markets.”
Hines worked on this off-market deal with Lee & Associates. The team on the deal was represented by Jim Reed, who is a principal out of the firm’s Bellevue office, and Adrienne Hunter, vice president, who is in the firm’s Seattle office.
The property is accessible via Interstate 405 and is within close proximity of Bellevue Plaza and other apartment complexes such as Apartments at Main Place, 425 Apartments, and others.
This past spring, Oaktree closed its eight real estate opportunity fund at $4.7 billion. The fund exceeded expectations, surpassing Oaktree’s initial $3.5 billion fundraising target. The fund specifically targets distressed real-estate related securities.
As of March of 2021, Oaktree had $153 billion of assets under management and a global presence spanning North America, Europe, the Middle East and Asia. About $13,983 million of its assets are specifically allocated to real estate, according to the company’s website.
In June of 2021, Hines announced Main Street Place, a 6.75-acre, mixed-use development in downtown Bellevue. It will sit less than one block away from a future light rail station, scheduled to open in 2023, which will connect this site to downtown Seattle, Seattle-Tacoma International Airport and Microsoft’s headquarters in Redmond, according to a statement from the company.