A California real-estate fund is set to pay $186.5 million for two downtown Bellevue buildings whose descriptions match U.S. Bank Plaza and Plaza Center, both on bustling Northeast Eighth Street west of Interstate 405.
The filing Tuesday by KBS Strategic Opportunity REIT said it signed an agreement Dec. 19 to acquire two Bellevue office buildings with a total 490,096 rentable square feet from Plaza Center Property. The buildings were constructed in 1978 and 1983 and renovated in 2007, KBS said.
While KBS didn’t identify the buildings in its filing with the Securities and Exchange Commission, King County records show the seller it named, an affiliate of Boston-based Beacon Capital Partners, owns downtown Bellevue’s 10-story U.S. Bank Plaza and 16-story Plaza Center, along with a 1,117-stall parking garage between them.
The size and age of those two buildings match those in the KBS filing, based on data from OfficeSpace.com
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Records show Beacon’s Plaza Center partnership paid about $156.2 million in April 2007 for the buildings and garage, which are along Northeast Eighth Street, between 108th Avenue Northeast and 110th Avenue Northeast.
In its filing, KBS said the Plaza buildings are 81 percent leased to 53 tenants. The filing mentions the parking garage.
KBS said it put up $10 million in earnest money and intends to finance the acquisition through debt and cash.
If the deal closes, the sale would work out to about $380 a square foot, far cheaper than another deal for an office building just blocks away.
About a year ago, privately held Los Angeles-based CommonWealth Partners bought City Center Plaza at 555 110th Ave. N.E. for almost $375 million, or about $642 a square foot, records show.
On its website, KBS says it makes money by acquiring nonperforming loans and real estate from distressed sellers.
In the third quarter, KBS sold Kirkland’s Continental Plaza to Seattle-based Unico Properties for $24.5 million, or $323 a square foot, according to commercial real-estate brokerage Jones Lang LaSalle.
The pending Plaza Center sale would be another big asset disposal for Beacon Capital this year.
It sold Seattle’s Wells Fargo Center in the second quarter to Canadian real-estate investment firm Ivanhoé Cambridge for $389.9 million, or $397 a square foot, reports JLL.
Even though Beacon Capital may sell Plaza Center, it is in the permitting process for Bellevue Center, a 23-story office tower at 10833 Northeast 8th Street, according to city records.
Sanjay Bhatt: 206-464-3103 or firstname.lastname@example.org On Twitter @sbhatt