June 20, 2025

Wright Runstad and Shorenstein unload three towers at Spring District

Photo by J. Mark Griffith Photography [enlarge]

Drawbridge Realty says it now owns the Block 13 building, in a venture with KKR/Global Atlantic.

In two deals where dollar figures were at least partly lacking by deadline Wednesday, three new office buildings at Bellevue's Spring District have changed hands.

Original developers Shorenstein Properties, of San Francisco, and local shop Wright Runstad & Co. conveyed the buildings. Terms weren't announced, and the county was still recording the transactions on Wednesday.

BLOCK 13 TO DRAWBRIDGE

Drawbridge Realty says it now owns the Block 13 building, in a venture with KKR/Global Atlantic. That building, at 1385 123rd Ave. N.E., has about 212,128 square feet. It had been known that Block 13, leased to Meta/Facebook, was on the market. At the same time, sublease tenants have been sought. It's unclear if the building has any occupants.

Newmark's Kevin Shannon, Alex Foshay, Nick Kucha, Michael Moll, Ken White, Liam Ogburn and Jakob Nicholls represented the developers — as with the other two buildings below.

Public records indicate the assumption of a prior $236.4 million loan from a consortium including Forethought Life Insurance, Commonwealth Annuity & Life Insurance, First Allmerica Financial Life Insurance and Global Atlantic RE Limited. (The latter is part of the new ownership.)

It's unclear if there was any additional cash paid; the county doesn't show any.

The ownership vehicle, Block 13 Owner LLC, is now controlled by Drawbridge, which is based in San Francisco. The deal marks that private investor's entry to our region. CEO Charlie McEachron said in a statement, “Puget Sound is a market we have been closely monitoring as part of our broader portfolio expansion strategy. Block 13 is a high-quality, long-term leased asset that perfectly aligns with our investment objectives.”

Photo by Brian Miller [enlarge]

Block 5 and Block 6 have gone to Blackstone Real Estate.

BLOCKS 5 AND 6 TO BLACKSTONE

In a separate announcement, Shorenstein said Wednesday that it has conveyed its stake — or most of it — in Block 5 and Block 6 to Blackstone Real Estate. Both were also known to be on the market. Those are also leased to Facebook/Meta, and have about 670,000 square feet. Snowflake recently subleased all of Block 6, at 1646 123rd Ave. N.E., on the east side of the campus.

Shorenstein's Colby Wick said in a statement, “We're excited to welcome two world-class investors in Blackstone and Drawbridge to the Spring District.”

Shorenstein says Blackstone has “acquired a joint-control interest” in the two buildings. County records don't show a change in the ownership LLCs. As the DJC and others reported in January, there was a $270 million refinancing for Block 6, which now appears related to Blackstone's move. Northwestern Mutual Life Insurance then loaned about $150 million to the old ownership LLC.

Blackstone's David Levine said, “We are strong believers in the quality of the Spring District campus.”

Block 5 is at 1615 123rd Ave. N.E. and remains vacant. Broderick is the office leasing agent for the Spring District. About 1.8 million square feet has been completed to date.

There are also 800-plus apartments on the south end the campus. Other office buildings have previously been sold to Brookfield, which also owns the GIX Building. The little brew pub and office building also recently found new hands.

If Shorenstein and Wright Runstad retain a stake in Blocks 5 and 6, it isn't specified. Wright Runstad's Michael Yoo said, “The market's strong response reinforces the long-term vision we've pursued in partnership with Shorenstein over the past 18 years.”

It was back in 2007 when Shorenstein and Wright Runstad acquired 36 acres from Safeway, then paying about $68 million. Today, the 2 Line is running from Bellevue to Redmond, with a stop at the Spring District. Its belated connection to Seattle is supposedly coming next year.