January 30, 2020

4 towers envisioned for Sheraton Bellevue site

Renderings by Altoura for CollinsWoerman [enlarge]

PMF says it hopes to break ground in early 2021, with completion in 2023. Development could proceed all at once or in phases.

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The redevelopment would have 2 acres of public space.

Local firm PMF Investments has been planning to redevelop the 4.8-acre Sheraton Bellevue property since paying $42.7 million for it in 2016.

Now we have details, which PMF announced concurrently with filing for a master development permit with the city.

CollinsWoerman is the architect for the redevelopment, which will be almost directly east of the future East Main Station, where light-rail service will begin in 2023.

The address 100 112th Ave. N.E.

The plan is for four buildings, with up to 17 stories each, with 1 million square feet of offices, about 45,000 square feet of retail and restaurants, plus 145 apartments. The unnamed project, on the north side of Main Street and immediately west of Interstate 405, will also have 2 acres of public space.

PMF hopes to break ground in early 2021, with completion in 2023. PMF's Brian Franklin said in a statement, “We're moving quickly, and (are) excited to bring new high-rise office, retail and multifamily to Bellevue. In a few short years, the East Main Station area will be completely transformed into an exciting place to live and work.”

PMF says the project might proceed all at once, or in phases from south (Main) to north (Northeast Second Street). The general outline, subject to change, is an entirely residential tower and an approximately 383,000-square-foot office building on the south end. Then two more office towers would be developed on the north end.

City records indicate about 2,600 underground parking stalls for all users.

The 178-room Sheraton, which dates to 1979, will have to be demolished for the project to begin. Terms for its lease weren't available. PMF says the apartment site could possibly toggle to hotel rooms.

Separately, there are four other major redevelopment projects planned north of the Sheraton on the same strip along 112th, up to Northeast Eighth Street. All have varying combinations of hotel space, offices, retail and apartments. All will have to reconsider their mix of elements now that PMF has filed first for permits — and might start and finish construction first.

Owing in part to Amazon's projected growth in Bellevue, its transit-served downtown core is now the region's most premium market. Broderick Group puts the downtown Bellevue vacancy rate at only 3.6%. For new Class A-plus office buildings, the rate is only 1.3%.

The rental site Zumper calculated this month that Bellevue's median rent was $1,990, making it the region's second most expensive market after Kirkland. But that figure is for all of Bellevue, including points east. Rents downtown are much, much higher.

PMF is based in Bellevue and run by the Franklin family. It's an experienced retail developer and investor. The 100 112th redevelopment would be, by far, its largest undertaking. No development partners have been announced.