Old Fire Station No. 3

CALL FOR OFFERS: FRIDAY, APRIL 9, 2021, 4:00 PM

FOR SALE

THE OLD FIRE STATION N O. 3 14822 NE BEL RED RD BELLEVUE, WA 98007

PAT MUTZEL Senior Vice President [email protected] +1 425 453 3142

JEFF KAISER, CCIM Senior Vice President [email protected] +1 425 453 3145 NE 8TH ST GLENDALE CROSSROADS COUNTRY BELLEVUE OLDE CLUB MIDDLE SCHOOL

BELLEVUE STEVENSON AQUATIC ELEMENTARY CENTER SCHOOL

THE OLD FIRE STATION

BELLEVUE N O. 3 BELLEVUE HIGHLANDS BEL-RED ROAD FAMILY PARK YMCA HIGHLAND MIDDLE SCHOOL

NE 20TH ST

INTERLAKE MEDICAL CENTER

152ND AVE NE

OVERLAKE FASHION PLAZA

NE 24TH ST

520 OVERLAKE CENTER

BELLEVUE CHILDREN’S ACADEMY N

AVALON ESTERRA PARK Colliers International is pleased to present for sale The Old Fire Station No. 3.

TABLE OF CONTENTS

OFFERING SUMMARY Site Information ...... 6

Local Market Overview ...... 7

Market Demographics ...... 9

Allowable Uses ...... 10

SALES COMPARABLES Sales Comparables ...... 16

Offering Summary Offering Summary

SITE INFORMATION

Land Square Feet: 30,800 Acres: 0.71 Building Gross Square Feet: 5,636 FAR: .1830 Heating System: Warmed and cooled air Sprinklers: No Year Built: 1960 Zoning: O-Office, City of Bellevue Utilities: City or District Parking: Adequate Building Description: Former Fire Station No. 3, City of Bellevue

PROPERTY IDENTIFICATION

Owner: City of Bellevue/Finance

Address: 14822 NE Bel Red Road, Bellevue, WA 98007

Tax Parcel Number: 262505-9107

Assessed Value and Taxes: Exempt

Legal Description: E 100 FT OF W 280 FT OF POR OF SW 1/4 OF NW 1/4 LY SLY OF CO RD # 966 & NLY OF REDMOND-BELLEVUE EXTNSN CO RD & POR VAC RD ADJ

Marketing History: City of Bellevue leases the existing offices to a media company

Colliers International | 6 Offering Summary

LOCAL MARKET OVERVIEW—CITY OF BELLEVUE

The property is in the City of Bellevue, which is situated in north‐central King Seattle. Both bridges provide linkage to all major regional highways and interstates, County, east of the city of Seattle and Lake Washington in an area known as the and direct access to agriculturally rich Eastern Washington; to the major cities/ Eastside. Bellevue is now the fifth largest city in the State of Washington, follow- ports of Vancouver, Canada, and Portland, Oregon; to the Seattle‐Tacoma Interna- ing Seattle, Spokane, Tacoma, and Vancouver. It is close to a wide array of natural tional Airport; and to the major market and port of the City of Seattle. The Bellevue resources, including lakes, mountains, forests, rivers, and open spaces. The avail- downtown area is currently the second largest city center in Washington State with ability of cultural, recreational, sports, education, employment, entertainment, and 1,300 businesses, 45,000 employees and 10,200 residents. Based on per capita shopping opportunities add to the high quality of life enjoyed in the area. This urban income, Bellevue is the 6th wealthiest of 522 communities in the state of Washing- city is surrounded by the cities of Medina and Clyde Hill to the northeast; Kirkland ton. A diversified mix of businesses exists in Bellevue. Many businesses are small and Redmond to the north; Newcastle and Renton to the south; and Lake Samma- shops or small‐ to medium‐sized service businesses, but Bellevue is also home to mish to the east. Below is map of Bellevue and the surrounding area: numerous companies with more than 1,000 employees, including about 150 company headquarters. More than 900 companies are involved in foreign trade. With The City has well‐developed transportation links with other parts of the metropolitan its immediate proximity to Redmond, home of Microsoft, and direct highway access area that makes Bellevue an integral part of the region. Bellevue is approximately to Seattle via Interstate 90 and State Route 520. The city has numerous thriving ten miles directly east of the Seattle central business district, and is linked to Seat- commercial districts. Besides Bellevue Square and Lincoln Square, there are three tle by two bridges across Lake Washington; Interstate 90 and State Highway 520. major shopping centers in the city with Factoria Mall to the south, Crossroads Mall Interstate 405 provides a north‐south link to the other suburban cities surrounding to the East, and the Overlake Shopping District to the north.

Colliers International | 7 Offering Summary

LOCAL MARKET OVERVIEW—CITY OF BELLEVUE CONT.

Bellevue is the main Eastside hub for both the local transit authority, King County The city encompasses an area of 27 square miles and is well linked to established Metro and Sound Transit, the regional transit system. The Bellevue Transit Center, transportation corridors. The East Link Light Rail for the central Bellevue segment which serves both Metro Transit and Sound Transit buses, is in the heart of the (from SE 4th Street on 112th Ave SE to 124th Ave NE) is under construction with downtown business district and is connected to Interstate 405 by NE 6th St. and a completion anticipated 4th Quarter 2020. The East Link entails 4 stations, which direct‐access HOV ramp. Local buses run into Kirkland, Redmond, Issaquah, Renton, include the East Main Station, Bellevue Downtown Station, Wilburton Station and and the University District; regional buses go to Bothell, Lynnwood, Everett, Seattle, Spring District/120th Station. Renton, Kent, Auburn and Federal Way, among other cities.

Colliers International | 8 Offering Summary

MARKET DEMOGRAPHICS

RADIUS 1 MILE 3 MILE 5 MILE Population: 2025 Projection 25,803 130,385 310,320 2020 Estimate 23,825 120,720 286,318 Growth 2020-2025 8.30% 8.01% 8.38% Growth 2010-2020 30.80% 27.81% 31.59% 2020 Population by Race: White 11,288 69,720 184,739 Black 910 3,378 6,365 Am. Indian & Alaskan 149 589 1,258 Asian 10,620 42,204 81,990 Hawaiian & Pacific Island 63 257 565 Other 796 4,572 11,401 U.S. Armed Forces: 0 58 120 Households: 2025 Projection 10,522 55,019 128,975 2020 Estimate 9,759 50,947 118,961 Growth 2020 - 2025 7.82% 7.99% 8.42% Growth 2010 - 2020 25.76% 27.51% 31.81% Owner Occupied 2,776 24,505 67,391 Renter Occupied 6,983 26,441 51,570 2020 Avg Household Income $125,066 $149,766 $159,251 2020 Med Household Income $97,122 $120,863 $132,549

Colliers International | 9 Offering Summary

ALLOWABLE USES The summary shown here illustrate that myriad uses are allowed under the Office District zoning. The 20.10.260 most probable purchaser would be a developer who intends to renovate or re-purpose the property. Office District (O). Office Districts provide areas for business, financial and professional service offices, located on arterial or commercial access streets. In the proximity of other major business and commercial districts, this district may serve as a buffer between residential areas and more intensive commercial districts. (Ord. 4654, 6-6-94, § 11; Ord. 3145, 9-27-82, § 12)

» Measuring, Analyzing and Controlling Instruments, » Limited Governmental Services: Executive » Eating and Drinking Establishments Photographic, Medical and Optical Goods; and Administrative, Legislative and Protective » Misc. Retail Trade: Drugs, Liquor, Antiques, Watches and Clocks Mfg.; Computer Software Functions Books, Sporting Goods, Jewelry, Florist, Photo » Library, Museum » Universities and Colleges Supplies, Video Rentals and Computer Supplies » Art Gallery » Special Schools: Vocational, Trade, Art, Music, » Private Leisure and Open Space Areas Excluding Driving, Barber and Beauty Schools Recreation Activities Above » Religious Activities » Public/Private Park » Administrative Office – General » Veterinary Clinic and Hospital » Computer Program, Data Processing and Other » Finance, Insurance, Real Estate Services Computer-Related Services » Child Day Care Center » Research, Development and Testing Services » Business Services, Duplicating and Blue Printing, » Accessory Parking Steno, Advertising (Except Outdoor), Travel » Radio and Television Broadcasting Studios Agencies and Employment » Highway and Street Right-of-Way » Professional Services: Medical Clinics and Other » Local Utility System Health Care Related Services » Regional Light Rail Transit Systems and Facilities » Professional Services: Other » Satellite Dishes

Colliers International | 10 20.20.010 Uses in land use districts dimensional requirements | Bellevue Land Use Code Page 3 of 10

Dimensional Requirements for Office and Limited Business – Open Space (OLB-OS) are found in Part 20.25L LUC.

Dimensional Requirements for Medical Institution District (MI) are found in Part 20.25J LUC.

Dimensional Requirements for BelRed Land Use Districts are found in Part 20.25D LUC.

Uses in land use districts –Dimensional Requirements Office

STD LAND

CODE OLB LAND USE CLASSIFICATION PO O OLB LI GC NB NMU CB F1 F2 F3 REF 2

(21) (21) (21) (21) (21) (21) (21) (21) (21) (28) (21, (21, DIMENSIONS 31) 32) Offering20.20.010 Uses in land use districts Summarydimensional requirements | Bellevue Land Use Code Page 3 of 10 Minimum Setbacks of 30 30 50 0 15 15 0 50 20 Structures (feet) Front Yard Dimensional Requirements for Office and Limited Business – Open Space (OLB-OS) are found in Part 20.25L LUC. (18) (20)

Dimensional Requirements for Medical Institution District (MI) are found in Part 20.25J LUC. Rear Yard (17) (18) (20) 25 25 50 0 (2) (2) (2) 0 (2) 30 5 Dimensional Requirements for BelRed Land Use Districts are found in Part 20.25D LUC. 20.20.010 Uses in land use districts dimensional requirements | Bellevue Land Use Code Page 4 of 10 DIMENSIONAL REQUIREMENT AND SETBACK IN “O”Side ZONING Yard (17) (18) (20) 20 20 30 0 (2) (2) (2) 0 (2) 30 5 Uses in land use districts –Dimensional Requirements 2 Side Yards (17) (18)Uses (20) in land 40 use districts 40 60 –Dimensional 0 (2) Requirements(2) (2) (2) 60 10 VIEW FULL LAND USE 20.20.010 Uses in land use districts dimensional requirements | Bellevue Land Use Code Page 4 of 10 ORDINANCE HERE Floor Area Ratio (8) (8, (8) 1 (8) (8) (8) 1 (8) .75 or go to https:// 50) (49) bellevue.municipal. Uses in land use districts –Dimensional Requirements codes/LUC/20.10.010

Office Minimum Lot Area Acres (A) 2A 2A 2A Office or Thousands of Sq. Ft. (3) STD STD LAND Dwelling Units per Acre (15) 10 20 30 15 30 30 30

LAND Office

USE Professional Office Business Office/Limited 2 Business Office/Limited Industry Light Commercial General Business Neighborhood Neighborhood Mixed Use Business Community 1 District Use Land Factoria 2 District Use Land Factoria 3 District Use Land Factoria (21) (21) (21) (21) (21) (21) (21) (21) (21) (28) (21, (21, Width Required in Lot (4) 200 200 200 DIMENSIONS CODE Maximum in Building Height 20 30 45 OLB75 45 30 20 75 45 75 75/ 31) 32) LAND USE CLASSIFICATION PO O OLB LI GC NB NMU CB F1 F2 F3 (feet) (10) (19) (6) (9) (25) (46) 135 REF Depth Required in Lot (4) 2 (33, Minimum Setbacks of 30 30 50 0 15 15 0 50 20 Maximum in Building Height 20 30 45 75 45 30 20 75 45 75 75/34) Structures (feet) Front Yard (feet) (10)The (19) Bellevue Land Use Code is current through Ordinance 6521, (passed25) July 27, 2020. 135 (18) (20) (6) (9) (46) Maximum Lot Coverage by 35 35 35 35 50 35 35 35 40(33 , Structures (percent) (13) (14) (24) (24) (24) (24) (24) (24) Rear Yard (17) (18) (20) 25 25 50 0 (2) (2) (2) 0 (2) 30 5 (34)24) (16) Side Yard (17) (18) (20) 20 20 30 0 (2) (2) (2) 0 (2) 30 5 Maximum Lot Coverage by 35 35 35 35 50 35 35 35 40 Maximum Hard Surface 85 85 85 85 90 85 80 85 85 85 85 Structures (percent) (13) (14) (24) (24) (24) (24) (24) (24) (24) 2 Side Yards (17) (18) (20) 40 40 60 0 (2) (2) (2) (2) 60 10 Coverage(16) (percent) (37) (47)

Floor Area Ratio (8) (8, (8) 1 (8) (8) (8) 1 (8) .75 Maximum HardImpervious Surface 8560 8560 8560 8560 9065 8565 8060 8560 8565 8560 8560 50) (49) CoverageSurface (percent) (percent) (35) (37) (37) (47)

Minimum Lot Area Acres (A) 2A 2A 2A MaximumAlternative Impervious Maximum 6080 6080 6080 6080 6585 6585 6080 6080 6585 6080 6080 or Thousands of Sq. Ft. (3) SurfaceImpervious (percent) Surface (35) (37) (percent) (35) (37) (39) (48) Dwelling Units per Acre (15) 10 20 30 15 30 30 30 Alternative Maximum 80 80 80 80 85 85 80 80 85 80 80 (22) (23) (23) (23) (23) (23) (23) (23) * Not effectiveImpervious within Surface the jurisdiction of the East Bellevue Community Council. (percent) (35) (37) (39) (48) Minimum Dimensions (feet) 200 200 200 NOTE: Dimensional Requirements for Downtown are found in Part 20.25A LUC.

Width of Street Frontage Additional dimensional requirements for Shoreline Overlay Districts are found in Part 20.25E LUC. * Not effective within the jurisdiction of the East Bellevue Community Council. Dimensional Requirements for Evergreen Highlands Design District (EH-A, EH-B, EH-C, EH-D) are found in Part NOTES: Width Required in Lot (4) 200 200 200 NOTE: Dimensional Requirements for Downtown are found in Part 20.25A LUC. (8) Any office building or any office portion of a building in the PO, O, OLB, LI, GC, NB, CB or F1 Districts shall comply (21)20.25F See LUC. LUC 20.25H.045 for calculation of density/intensity on sites in the Critical Areas Overlay District. Additional dimensional requirements for Shoreline Overlay Districts are found in Part 20.25E LUC. with the followingDepth Required limitations in on Lot Floor (4) Area Ratio: (23) This residential density may be in addition to FAR only for senior citizen dwellings, assisted living and congregate Dimensional Requirements for Office and Limited Business – Open Space (OLB-OS) are found in Part 20.25L LUC. (a) At 0.5 FAR, no office building or office portion of a building may exceed 50,000 square feet of gross floor area; and careDimensional senior housing. Requirements for Evergreen Highlands Design District (EH-A, EH-B, EH-C, EH-D) are found in Part (b) For any office building or office portion of a building greater than 50,000 square feet in gross floor area, the follow- (24) Lot coverage may be increased to 50 percent if congregate care senior housing, senior citizen dwellings, assisted 20.25FDimensional LUC. Requirements for Medical Institution District (MI) are found in Part 20.25J LUC. ing sliding scale shallThe be Bellevue observed Land as Useinterpolated Code is currentand extrapolated through Ordinance below: 6521, passed July 27, 2020. living or nursing homes are constructed on site; provided, however, that coverage for the nonresidential portions of the (i) At 0.3 FAR, no office building or office portion of a building may exceed 100,000 square feet of gross floor area; and developmentDimensional cannot Requirements exceed the for maximum OfficeBelRed and limitsLand Limited indicated.Use Districts Business Lot coverageare – foundOpen within Spacein Part NB (OLB-OS) 20.25D and NMU LUC. are Districts found mayin Part be 20.25Lincreased LUC. (ii) At 0.1 FAR, no office building or office portion of a building may exceed 150,000 square feet to 50 percent for mixed use development which includes residential uses comprising at least 1/2 the square footage of Dimensional Requirements for Eastgate Transit Oriented Development District are found in Part 20.25F LUC. of gross floor area. theDimensional building footprint. Requirements Underground for Medical parking inInstitution excess of District 50 percent (MI) ofare the found site area in Part shall 20.25J not be LUC. included in lot coverage (c) In an O District, north of Factoria Mall and directly adjacent to an F2 District, any office building or any office portion calculations. Dimensional Requirements for BelRed Land Use Districts are found in Part 20.25D LUC. of a building may have a Floor Area Ratio greater than 0.50, not to exceed a Floor Area Ratio of 0.75 FAR. In this district, (50) Office-designated opertiespr in the Eastgate Subarea annexed into the City with the Eastgate annexation (May 2012) The Bellevue Land Use Code is current through Ordinance 6521, passed July 27, 2020. the sliding FAR scale does not apply. shallDimensional not be considered Requirements nonconforming for Eastgate with respectTransit toOriented FAR if the Development development District thereon are was found legally in established Part 20.25F prior LUC. to the This footnote 8 shall not apply to sites in the Critical Areas Overlay District. Density/intensity on sites in the Critical Areas date of annexation. Overlay District is calculated pursuant to LUC 20.25H.045. Colliers International | 11 The Bellevue Land Use Code is current through Ordinance 6521, passed July 27, 2020. Offering Summary

NEARBY PROPERTY USES HIGHEST AND BEST USE The overall character of the immediate neighborhood is a mix between high density The most probable tenant of a future redevelopment would be office tenants who residential and commercial. Property types situated immediately north and east of the will be attracted to the subject’s location near downtown Bellevue, downtown subject site are generally commercial uses, with mostly residential uses situated to Redmond and the Bel Red development area. the south. Immediately to the south is Highland Middle School. The neighborhood is a transition area between mainly commercial use properties in the Bel Red neighborhood to the north and mainly residential uses to the south. IMPROVEMENT DESCRIPTION (INTERIM) In the existing state, the subject property is improved with two detached, interim use MARKETABILITY ANALYSIS structures on one contiguous parcels. One building contains 5,636 SF of GBA, orig- inally constructed in 1960 and the other building contains 1,992 SF of GBA (training The subject site is zoned O (Office), by the City of Bellevue. The intent of the O zone tower). is to provide areas for business, financial and professional service offices, located on arterial or commercial access streets. In the proximity of other major business and Overall, in analyzing the highest and best use of the subject, it is concluded that commercial districts, this district may serve as a buffer between residential areas and the value of the underlying land “as vacant” exceeds the value of the property “as more intensive commercial districts. improved.” This is supported by it’s low “as built” FAR (Floor Area Ratio) of 0.18 relative to the maximum allowed FAR of 0.5 under the code (15% of max FAR Permitted uses include commercial buildings including retail and office spaces. allowance utilized).

Considering current market conditions, coupled with redevelopment trends in the immediate area, it is reasonable that the subject improvements should be demol- ished to make way for redevelopment. Thus, the buildings are at the end of their economic life and require demolition to prepare the site for redevelopment, regard- The following is a list of some of the key development criteria of the O (Office) less of the remaining physical life in the structure. zone:

Setbacks: Front: 30 feet; Rear: 25 feet; Interior: 20 feet SITE PRODUCTIVITY CONCLUSION Minimum Area: None The subject site is well suited for a variety of commercial development options. Maximum Building Height: 30 feet The site is zoned office which is a transition zone between heavier commercial Maximum Building Coverage: 35% uses and residential. The property benefits from mostly level topography, no known wetlands minimal environmental issues, and all utilities available. Maximum Impervious Surface: 60%-80% FAR (Floor Area Ratio): 0.5 Parking (Office): 4 spaces for 1,000 SF of net floor area

Colliers International | 12 Offering Summary Property Assessment

Colliers International | 13

Sales Comparables Sales Comparables

Northup Way

8 7

NE 20th St 9 1

10 148th Ave NE

Bel-Red Rd 116th Ave NE Ave 116th 116th Ave NE Ave 116th 2 3 11

NE 8th St 4

6 5

Colliers International | 16 Sales Comparables

SALE SALE BUILDING LAND BUILDING LAND YEAR PROPERTY NAME AND ADDRESS BUYER ZONING PRICE DATE SF AREA SF PRICE/SF PRICE/SF BUILT

Bellevue School District No. 405 site Bellevue School $3,250,000 8/30/2019 3,957 35,719 $821.33 $90.99 O 1950 1 1814 151st Ave NE District No. 405

Forum South Office Building Bel Red Properties, LLC $3,160,000 6/22/2018 7,700 24,933 $410.39 $126.74 O 1983 2 12503 NE Bel-Red Rd (Mike Makker, CPA)

875 Building Wilburton Ridge $5,625,000 9/14/2017 17,229 45,168 $326.48 $124.54 O 1982 3 875 124th Ave NE 345 LLC

Wegner Office/Apt Bldg Yue He $2,450,000 2/17/2017 10,000 21,780 $245.00 $112.49 O 1984 4 13635 NE 8th St

Eastridge Bldg C Bellevue School $12,000,000 5/7/2014 44,670 116,300 $268.64 $103.18 O 1984 5 12011 NE 1st St District No. 405

Belle-View-North Building MJR Development Inc. $3,410,000 1/16/2013 19,275 57,020 $176.91 $59.80 O 1984 6 275 118th Ave SE

Digital Reprographics Kent Hill $3,800,000 3/5/2019 15,600 27,870 $243.59 $136.35 BR-GC 1974 7 12880 Northup Way Properties LLC

Northup Land Northup Square, LLC $5,300,000 9/17/2018 0 71,553 #DIV/0! $74.07 BR-GC N/A 8 12410 Northup Way (Yu Xiahou)

Bellevue Auto Center OB Bellevue Properties $6,250,000 10/11/2017 15,562 54,437 $401.62 $114.81 BR-GC 1988 9 13421 NE 20th St LLC (Michael O’Brien)

Tri-State Plumbing Par-5 Investments $5,000,000 8/5/2017 19,640 43,078 $254.58 $116.07 BR-GC 1963 10 1624 135th Pl NE

Hilltop Office Park Canus Foundation LP $3,035,000 8/4/2017 7,672 23,647 $395.59 $128.35 O 1984 11 12330 NE 8th St

Colliers International | 17 Co

PAT MUTZEL JEFF KAISER, CCIM COLLIERS INTERNATIONAL Senior Vice President Senior Vice President 11225 SE 6th St., Suite 240 [email protected] [email protected] Bellevue, WA 98004 +1 425 453 3142 +1 425 453 3145 +1 425 453 4545