Bellevue Burger King to Become Office Tower
Address: 11723 NE 8th Street, Bellevue, WA 98005
Buyer: KG Investment Properties of Bellevue
Seller’s Broker: Chris O’Connor and Barry Kelly
Seller: The Shirley Hansen LLC
Price: $6.35 million
The Situation
The Shirley Hansen LLC owned the Burger King site located at 11723 NE 8th Street, Bellevue, WA. Once the sole member of the LLC passed away, the co-managers of the LLC decided it was in the best interests of the LLC to sell the property. They wanted this property to close as fast as possible before the end of the year to avoid the new WA State Real Estate Excise Tax (REET) going into effect in 2020.
Action
The seller was looking for real estate professionals who understood the area. They found Chris O’Connor and Barry Kelly’s names off a sign they had for another nearby listing at 11839 NE 8th Street. NAI Puget Sound Properties competed against two other firms for the property but ultimately won because of their demonstrated market knowledge of the Bellevue CBD market. Chris had previously sold the neighboring Nissan (now Infiniti) dealership.
One of the challenges this property faced was the long term lease in place. This property is currently encumbered by an 11-year lease with an under-market lease rate. This shifted the focus to market the property to investors as a future transit-oriented development.
The property is located right off the I-405 and NE 8th Street exit and neighbors the future Wilburton light-rail station making it an ideal development site. With the property being zoned General Commercial (GC) it allowed for mixed retail and commercial designation for a wide variety of business activities.
Results
Chris and Barry marketed the property for 20 days before requesting a call for offers. They received eight offers and narrowed it down to three before requesting a best and final. KG Investment Properties of Bellevue (KG) ultimately had the winning bid at $6.35 million.
KG is currently developing the Wilburton Village located half a mile south from the Burger King site. The Wilburton Village currently boasts Trader Joe’s and REI and will soon include Virginia Mason, PCC, Target and Dave & Buster's. KG plans to eventually turn the Burger King property into an office tower after the lease expires.
