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EMERGING MARKETS

THE BEL-RED CORRIDOR

E. BELLEVUE, WA

 

BEL-RED CORRIDOR

A REDEVELOPMENT BOOM

POWERED BY TECHNOLOGY, TRANSIT, & TENANCY

 
Conceptual Redevelopment   Source: City of Bellevue

Conceptual Redevelopment

Source: City of Bellevue

INVESTMENT HIGHLIGHTS

Bel-Red Corridor (part of E. Bellevue) is emerging.  We've highlighted Bel-Red as a market to watch for real estate investors who are:

  1. Seeking higher returns than what can be found in the Seattle and Eastside core
  2. Seeking well located real estate with quick access to employment centers
  3. Seeking markets with catalyst projects (ie - Spring District, Esterra Park, & Light Rail Development) which will attract further development and investment activity

 

BEL-RED CORRIDOR

The BelRed Corridor is on the precipice of change, perfectly positioned to be a model for sustainable, smart growth development. A 900-acre light industrial site in the Puget Sound's economic core, the BelRed corridor is transforming into mixed-use, transit-oriented neighborhoods, while restoring ecological functions and creating thousands of new jobs and housing units.

Higher density, compact development will be the focus of new dynamic and livable communities, organized around transit stations and connected by a high capacity transit line that spans the corridor.

The corridor includes:

  • 27 percent of the city's commercial and industrially-zoned land
  • More than 50 percent of all land in the city zoned for light industrial use
  • Approximately 20 percent of the city's total employment 
  • More than 2,000 businesses

While BelRed is a major employment area, some large employers have moved or reduced operations in recent years. Between 2005 and 2009, the city worked with businesses, residents and other stakeholders to determine a new role for BelRed. 

Sound Transit's East Link light rail line is under construction and slated to begin operation in 2023. It will pass through BelRed, connecting downtown Seattle, downtown Bellevue and the Overlake area in Redmond. Two stations will be in BelRed, providing  opportunities for transit-related development nearby. 

The City of Bellevue is preparing for the future in BelRed with several road improvement projects, partly funded by a low-interest federal loan. Video. By 2030, the BelRed area is expected to generate:

  • 10,000 new jobs and 5,000 new housing units
  • Transit-oriented developments around light rail stations
  • Restored streams and ecological functions
  • Better local and regional transportation connections
  • New parks, trails, bike paths and other amenities
  • Significant economic development

The BelRed Vision is: “To develop a sustainable urban development pattern that dramatically reshapes the future of BelRed while allowing the area to transition gracefully from its past.”

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DEMOGRAPHIC SNAPSHOT

 

18,602

Population (2017)

39.3

Avg. Age

$89,154

Avg. Household Income

$157,000

Avg. HH Income

( Dominant Segment )

 

Source: Realtors Property Resource® and RPR


BEL-RED ZONING

 
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MAJOR PROJECTS

BEL-RED CORRIDOR DEVELOPMENT PIPELINE

 
 
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REAL ESTATE MARKET STATS

RESIDENTIAL AND INVESTMENT

 

RESIDENTIAL

24

Avg. Days on Market

( All Home Sales )

$1,142,300

Median Home Value

( All Home Sales )

$2,000,000

Median Home Value

( New Home Sales )

$427.58

Avg. $/SF

( New Home Sales )

 

MULTIFAMILY (SUBURBAN BELLEVUE)

$346,166

Avg. $/Unit ( Sales )

3.1%

Vacancy Rate

4.4%

Cap Rate ( Sales )

$396/SF

Avg. $/SF (Sales)

 

$2.94/SF

Rental Rate ( Studio )

$2.24/SF

Rental Rate ( 1br/1ba )

$1.87/SF

Rental Rate ( 2br/1ba )

$1.96/SF

Rental Rate ( 2br/2ba )

 

RETAIL (SUBURBAN BELLEVUE)

$26.48/SF

Rental Rate

0.7%

Vacancy Rate

4.5%

Cap Rate ( Sales )

$535/SF

Avg. $/SF ( Sales )

 

OFFICE (SUBURBAN BELLEVUE)

$31.23/SF

Rental Rate

5%

Vacancy Rate

5.1%

Cap Rate ( Sales )

$425/SF

Avg. $/SF ( Sales )

 

INDUSTRIAL/FLEX (BEL-RED)

$16.71/SF

Rental Rate

1.5%

Vacancy Rate

5.5%

Cap Rate ( Sales )

$238/SF

Avg. $/SF ( Sales )

 

Source: Costar, REIS, NWMLS and Dupree & Scott. Statistics are for Bel-Red Corridor and surrounding areas. Cap Rate calculated from Costar and Dupree & Scott for all of 2017 only.  Statistics shown above are a blend of all qualities on investment spectrum (class A, B, & C).


TRANSPORTATION

 
 
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DOWNTOWN SEATTLE

16 Minute Drive

DOWNTOWN BELLEVUE

6 Minute Drive

 

LIGHT RAIL

EXPECTED 2023

 

East Link will give riders a fast, frequent and reliable connection between the Eastside's biggest population and employment centers and destinations across King, Pierce and Snohomish counties. When East Link opens in 2023, passengers will be able to ride more than 42 miles of light rail, from the eastside to Northgate and to Angle Lake. Extensions south to Kent/Des Moines and Federal Way, north to Lynnwood and east to downtown Redmond will open one year later in 2024.

 

Source: Sound Transit

Source: Sound Transit

 

Contributors: 

Lloyd Ball - President, Managing Broker   Lloyd has over 17 years in Seattle-area real estate experience as both a broker and investor. He has a deep network of local relationships and a long history of sourcing high-quality investment opportunities that are not listed on the open market. Lloyd holds a certificate in real estate finance from MIT, and is an active board member of the Rental Housing Association of WA.

Lloyd Ball - President, Managing Broker

Lloyd has over 17 years in Seattle-area real estate experience as both a broker and investor. He has a deep network of local relationships and a long history of sourcing high-quality investment opportunities that are not listed on the open market. Lloyd holds a certificate in real estate finance from MIT, and is an active board member of the Rental Housing Association of WA.

Justin Sult - Executive Vice President   Justin has over 6 years of real estate experience as a broker, investor, and user of commercial space. Justin has completed the CCIM curriculum, CPM curriculum, and holds a certificate in real estate finance from NAIOP. He is also an active member of the CCIM’s WA chapter, as well as the Urban Land Institute and Institute of Real Estate Management.

Justin Sult - Executive Vice President

Justin has over 6 years of real estate experience as a broker, investor, and user of commercial space. Justin has completed the CCIM curriculum, CPM curriculum, and holds a certificate in real estate finance from NAIOP. He is also an active member of the CCIM’s WA chapter, as well as the Urban Land Institute and Institute of Real Estate Management.

Nicole Mitha - Marketing Director   Nicole was educated at USC film school and has over 8 years of experience in digital marketing, content creation, and  visual art. Nicole entered real estate on the development side, working on multimillion dollar hotel projects. She holds a double BA in film and international relations from USC, and is an active fundraiser for the Seattle Art Museum and Seattle Opera.

Nicole Mitha - Marketing Director

Nicole was educated at USC film school and has over 8 years of experience in digital marketing, content creation, and  visual art. Nicole entered real estate on the development side, working on multimillion dollar hotel projects. She holds a double BA in film and international relations from USC, and is an active fundraiser for the Seattle Art Museum and Seattle Opera.

 
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