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Deals & Dealmakers

Beam Reach Partners to Deliver 740,000-Square-Foot
Premier Office Development in Downtown Bellevue

Newmark announces KANON, a proposed 740,000-square-foot two-tower office development, located steps away from the newest Downtown light rail stop,
in Bellevue, Washington. The project is expected to break ground in late 2023 for completion in mid-2026.

“We are excited to introduce this thoughtfully designed project that will be a unique offering to the market,” said John Lewis, Co-Founder of Beam Reach Partners. “With an abundance of green space and floor plates that are optimized for tech users post-COVID space needs, KANON will be an attractive option for traditional and technology tenants.”

KANON will feature two towers, each rising 16 stories and totaling more than 740,000 square feet of tech office space. Beam Reach Partners agreed to ground lease the site from Wallace Properties and has filed a new application with the city in lieu of Wallace Properties’ previous submittal.

“We are grateful for the opportunity to build a relationship with Kevin and Bob [of Wallace Properties]. Their reputation speaks for itself but getting to know them personally and working closely to negotiate a deal reinforced the fact that they are the kind of people we love to work with,” said Sam Rabb, Co-Founder of Beam Reach Partners. “Our long-term ground lease was a good solution to maintain the Wallace’s substantial presence in Bellevue – their home and a place that is very special to them – while leveraging our expertise in commercial real estate to design and deliver a product that is ideal for tenants, the city and people of Bellevue and our investors. We look forward to a long-term collaborative relationship with the Kevin, Bob and the City of Bellevue.”

The Gensler-designed development will feature extensive decks and terraces with outdoor green space on every tenant floor, as well as several strategically located “superfloors” featuring oversized outdoor space and programming. The development will also include a bike/pedestrian connection to the nearby light rail, rooftop decks, access to the multi-modal trails along 114th, abundant parking, secure state-of-the-art bike rooms and lockers and a 0.9-acre central park—the largest outdoor green space amenity of any office development project in Downtown Bellevue. The wi-fi equipped park amenity will feature native landscaping, an amphitheater, and variety of outdoor work, social and eating areas. The project will target several certifications including LEED Platinum, Fitwel and Salmon Safe.

Rabb added, “Tenants’ wants and needs are changing in real time. We are focused on delivering a project that meets and exceeds current workplace environment needs, ultimately creating a special, unique space where tenants and their employees are excited to work.”

Located immediately adjacent to Interstate 405 at the southeast corner of 112th Avenue NE and NE 4th Street, KANON’s proximity to the Downtown Bellevue light rail stop offer easy connectivity to the multi-modal trail. Numerous cultural, entertainment, shopping and dining amenities surround the site including Bellevue Downtown Park, Bellevue Botanical Garden, Bellevue Arts Museum, Seattle Marriott Bellevue, Hilton Bellevue, Surrey Downs Park and Bellevue Club.

Newmark Executive Managing Director Jesse Ottele and Associate Director Brendan Soelling have been assigned to lease the forthcoming project on behalf of the developer, Beam Reach Partners.

“We are thrilled to lease this exciting new office project,” said Ottele, “With beautifully designed tech and traditional office space, premier amenities and an unparalleled downtown Bellevue location, we are confident this project will generate strong tenant interest.”

“Gensler is thrilled to be working in Bellevue during this exciting time of the tran sforming skyline,”said Brian Di Maggio, Senior Associate and Studio Director at Gensler Seattle. “KANON will undoubtedly make a positive impact on downtown and create a prominent gateway on Fourth Avenue. The KANON development is designed to meet the evolving needs of tenants – specifically for more spaces that emphasize health and wellness. The abundance of outdooraccess and green space will provide third places where tenants can socialize or have focused time with a sense of safety and wellbeing – something Gensler’s research findings have revealed as one of the most important things employees want. We believe this project will enhance and positively impact the tenant experience, and we’re excited to partner with the Beam Reach to bring the vision to life.”

Seattle’s Eastside office submarket held steady over the second quarter of 2022, according to Newmark Research, reporting four quarters of positive absorption. The overall vacancy rate registered 4.8%, down 20 basis points over the quarter and 170 basis points over the past year. Construction activity continues to thrive on the Eastside with 6.5 million square feet of office
space underway.

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