Home AEC Skanska’s Future Plans for Bellevue Made Clearer with $18.8MM Acquisition of New...

Skanska’s Future Plans for Bellevue Made Clearer with $18.8MM Acquisition of New Development Site

By Meghan Hall

Skanska continues to make plans in Bellevue as the Eastside’s construction boom carries on. In a deal that closed this week, the Stockholm-based developer purchased a Bellevue development site just adjacent to another one of its current projects. Located at 10605 NE Ninth Place, Skanska paid $18.82 million for the property, according to public records. The seller was an entity affiliated with Logan, U.T.-based Wasatch Group.

Preliminary plans filed in March show that the project, while zoned for hospitality uses, could become home to another office building with underground parking. Skanska plans to build 150,000 square feet of “boutique” office space at the site, according to the company.

“Being able to invest in the same block as our project, The Eight, makes this land acquisition even more exciting. We look forward to furthering our investment into downtown Bellevue and creating an inspiring space that is highly sustainable and highlights our commitment to the community and our environment,” said Murphy McCullough, Executive Vice President for Skanska USA Commercial Development’s Seattle market.

The Eight, a 25-story Class A office building, has been long anticipated. In all, The Eight will total 552,000 square feet and is Skanska’s sixth project in the Puget Sound. The development of 10605 NE Ninth Place would be the firm’s seventh.

“Offices should be special and inviting. Flexibility, healthy spaces, advanced technology, convenience—these are all important to the modern workforce,” said Robert Ward, President and CEO, Skanska USA Commercial Development in a statement. “After months of creating a thoughtful, community and tenant-focused design, we formally began construction of The Eight. This will be our second development in Bellevue. It’s an exciting project for all of us at Skanska. Our local team has put significant effort into creating a space reflective of the vibrant Pacific Northwest that is just as distinct and sophisticated as Bellevue.”

The Eight is Bellevue’s first speculative office building to begin construction in six years and will deliver during the first quarter of 2024. Across Bellevue, eight other projects totaling 5.7 million square feet of space are under construction and pre-leased to Amazon, Facebook/Meta, or Google, according to a first quarter Broderick Group report. Amazon projects include 555 108th (970,000 square feet), West Main (1.04 million square feet), the Atise (605,000 square feet), and more. Facebook and Meta have 654,000 square feet in the Spring District, and Google has an additional 400,000 square feet of space in development in Kirkland.

In the future, Patrinely Group is likely to break ground on Four106, which totals 480,000 square feet, while Clarion and KG Investments are moving forward with a nineteen story tower at NE 4th and 108th. Broderick Group notes that in prior development cycles, Bellevue added 18 percent new product from 2016 to 2017 and 36.7 percent new product from 2007 to 2009.

“Five new projects totaling 2.06M SF does not exceed the historical norm,” Broderick Group states in its report. “With very little new suburban development, and an Eastside tenant base that is more diversified than ever, it is likely we will need this supply to feed increased tenant demand.”