Canada’s Brookfield Asset Management has acquired a new office building fully leased to Facebook within The Spring District, a mixed-use neighborhood being developed by Wright Runstad & Co. and Shorenstein Properties in Bellevue, Wash., for $365 million. The developers, together with institutional investors advised by J.P. Morgan Asset Management, sold the Block 16 building within the 36-acre business district.
The 11-story, 343,528-square-foot building at 1227 124th Ave. NE is the first large-scale building to begin development in The Spring District, having started work in the first half of 2018, with $107.5 million in construction financing. Facebook signed a 13-year lease for the building in 2019, as part of the company’s expansion in the Seattle area.
The Menlo Park, Calif.-based tech giant has also inked leases for 325,000 square feet at Block 6 and 200,000 square feet at Block 24 within the same development. The Spring District is also home to Recreational Equipment Inc.’s recently completed headquarters complex, which Facebook acquired in September, paying $390 million for the 400,000-square-foot asset next door to Block 16.
Out of a planned 24 buildings in The Spring District, 16 have been built so far. Located across Lake Washington from Seattle, the district houses the University of Washington’s Global Innovation Exchange, which opened in 2017, along with more than 800 residential units and a variety of public spaces.
Situated east of Interstate 405, the transit-oriented development is slated to add two more large-scale projects totaling 530,000 square feet of office space by 2023, with more development in the pipeline. The East Link extension of the Sound Transit system, which will connect the district with 40 miles of light rail in the Puget Sound region, is scheduled to begin service in the same year.