November 10, 2025

Bellevue office building sells for over $25M, with townhouses to follow

Photo via CBRE [enlarge]

A demo permit has been issued for the 40-year-old building.

An empty Eastgate office building at 3245 158th Ave. S.E., once filled by Verizon workers, sold last week for $25.2 million, according to King County records.

The seller was I-90 Bellevue I Investments LLC, associated with Rainier Pacific Properties, which acquired the property in 2007 for $12.7 million.

The buyer was KL LB PropCo IV C LLC, which is associated with Kennedy Lewis Investment Management, of New York.

An 83-unit townhouse plan was initiated two years ago by Intracorp, which terminated its prior purchase agreement last week. Kennedy Lewis is now working instead with Taylor Morrison. So some sort of similar residential scheme will evidently follow. The city calls the project Airfield Townhomes.

Brokers were not announced. The land sale was worth about $146 per square foot.

Developed on nearly 4 acres in 1985, the three-story building has around 70,994 square feet. It was once called I-90 Bellevue I, then rebranded as Airfield at Eastgate. CBRE has been seeking tenants on behalf of the seller — and may also have brokered the sale.

The new owners will likely continue along the same lines of the prior townhouse plan, (from Freiheit Architecture) for which several permits are in place. Demolition and grading permits were issued this spring. Ascendant was then listed as the demo contractor.

The site is on the north side of Interstate 90, a little east of the Michael's car dealerships and the Dairy Queen.