By Meghan Hall
A Sammamish, Wash.-based investor has scooped up several properties, including a retail asset known as Pace Bell building and adjacent service garage, for a healthy price tag. According to public documents, Bel-Red South LLC, affiliated with Raymond C. Spencer, purchased the properties for a combined $46.35 million. The transaction closed on Friday, Sept. 11th, and the seller was Bellevue-based Robertson Development Company LP, affiliated with David and Marilyn Robertson.
The properties are located at 13212 and 13310 NE Bellevue-Redmond Rd., as well as 1405 and 1515 134th Ave. NE. According to public parcel data, the transaction included six different parcels, totaling 188,273 square feet, or about 4.3 acres. The properties are developed with a variety of buildings, most built in the late 1960s and 1970s, used for warehouse, storage and retail.
The assets are well located and just minutes from downtown Bellevue along the main commercial Bel-Red corridor. Plaza 520, anchored by local retailers is located nearby, as is a secondary retail center anchored by Safeway and Applebee’s Bar and Grill.
It is unclear what the new owner’s plans are for the property. However, in recent years, Bellevue has seen an explosion of development as employers and investors look for opportunity on the Eastside. A recent study completed by CBRE indicates that more Seattle-based companies are considering the Bellevue and the Eastside markets. Tenant demand data from the third quarter indicates that 17 percent of relocating tenants are looking East, above the seven-year, established average of six percent.
The jump to the Eastside has been prompted by numerous factors: big employers such as Amazon, Facebook and others are investing heavily in communities outside of Seattle. Companies are also considering relocation after the July 6th passage of the Jump Start tax, intended to increase taxes on large offices with high-salaried employees. However, the majority of Seattle tenants looking to relocate would not necessarily be impacted by the new tax; they could, on the other hand, indicate a growing trend among occupiers. CBRE notes that previous tenant migration has also aligned with new office construction as tenants compete for higher-quality, more modern assets.