- Blackstone Real Estate has acquired a 40% stake in two office towers—Blocks 5 and 6—in Bellevue, WA, which are leased by Meta.
- The combined valuation of the buildings is $545M, highlighting strong investor appetite for newer, well-leased assets.
- The buildings are in the Spring District, a tech-driven hub benefiting from tenants like Amazon and Salesforce, and show resilience compared to nearby markets.
A Strategic Buy
Blackstone Inc. has acquired minority stakes in two office buildings located in Bellevue, Washington, both fully leased to Meta Platforms Inc, reports Bloomberg. The deal, via Blackstone’s real estate funds, signals a strategic shift toward high-quality office assets with stable, long-term tenants.
Deal Specifics
The assets—Blocks 5 and 6—were sold by Shorenstein Investment Advisers, with Blackstone acquiring a 40% stake in each. Combined, the buildings are valued at $545M. Located in the Spring District, the 11-story towers reflect the newer office assets investors are targeting in the post-pandemic market.
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Market Context
The Bellevue office market is outperforming neighboring Seattle, posting a 19% vacancy rate compared to Seattle’s 33%, per CBRE. The Spring District, a growing tech enclave, has attracted major tenants including Amazon, Salesforce, and most recently Snowflake Inc., which moved into Block 6 in May via a sublease.
More Moves In The Area
In addition to the Meta-leased buildings, Shorenstein and Wright Runstad & Co. sold Block 13, a nine-story office building. The buyer, Drawbridge Realty, adds to signs of ongoing transaction activity in the Spring District submarket.
Why It Matters
Blackstone’s move adds to a trend of institutional investors returning to the office sector, albeit selectively. Blackstone President Jon Gray signaled optimism on office recovery, shown by its recent purchase of 1345 Avenue of the Americas.
What’s Next
As tech firms expand in suburban-urban hubs like Bellevue, investors are focusing on Class A offices with strong tenant profiles. The Spring District offers transit access, new buildings, and strong occupancy, positioning it to attract demand in the office rebound.
