The Bellevue CBD Land transacted at $31 million, setting the record for the highest price per foot of land ever sold in Bellevue at $535/SF.
Kidder Mathews received the exclusive disposition assignment for this privately held asset in downtown Bellevue. The property consisted of four parcels on 58,000 square feet of land in Bellevue's highest zoned area. One office and one restaurant were on the site, but the highest and best use called for either an apartment or office building redevelopment to utilize the allowance in the zone and the demand in the market. A surface parking lot, managed by a local management company, also occupied the site and created a potential detriment in the sales process via a right of first refusal on the property.
The Sellers had owned the property for over thirty years while Bellevue, specifically downtown Bellevue, gentrified and developed all around the site. In the past five to ten years the Sellers got unsolicited offers to purchase the property almost monthly. Prior to Kidder Mathews receiving the disposition assignment, the Sellers received an unsolicited offer for the property from a regional developer near the high end of the range of offers for $18 million, or near $310/SF.
Our listing strategy was to go to market unpriced with the goal of setting the highest price per foot of land ever sold in Bellevue and selling above the $30 million mark. Most valuation metrics, including a private appraisal for the Sellers, set the price for the land near the middle $20 millions. Further, with multiple tenants in the two structures on the site, the Sellers needed to create short term leases to continue to generate positive cash flow without encumbering the site.
Multiple recent failed apartment and condominium sites throughout the Bellevue downtown since the economic recession of 2008 caused many buyers and investors to shy away from the multifamily product. The office development cycle also seemed to be maxed out as several projects were already in the pipeline and appeared ready to absorb most of the office demand.
Due to Kidder Mathews' expansive and broad reach in its marketing efforts, we identified a highly capitalized investor from Southeast Asia. Due to local legal issues for the Buyer, Kidder Mathews helped structure a Seller financing vehicle that allowed the Buyer to pull money out of her home country over four years while adequately protecting the interests of the Seller. Further, Kidder Mathews helped facilitate the funds transferred out of Southeast Asia and cleared government hurdles to utilize a large down payment in the Seller financed transaction to minimize risk. Kidder Mathews also assisted in transferring the closing documents between borders and managed a successful opening of escrow. As a result, the property transacted at $31 million, setting the record for the highest price per foot of land ever sold in Bellevue at $535/SF.
- Commercial real estate asset acquisition and disposition