In December, Bellevue-based American Capital Group (ACG) closed on the sale of an office building near Microsoft’s headquarters, paying the tech giant $39 million for the property. The 5.2-acre site at 3050 152nd Avenue NE is directly across the street from the Redmond Technology light rail and bus station, making it ideal for a transit-oriented, mixed-use project. ACG is one of many developers eager to meet the demand for more residential units on the Eastside.
Rather than becoming part of Microsoft’s ongoing office refresh, the 1980s-era building is slated for redevelopment as a two-phase residential project. Phase one will deliver 367 apartment homes and is scheduled to begin in September. A second phase, planned for 364 additional units, will follow pending lender financing. The entire project is expected to total 731 units and cost more than $300 million to complete.
The surge in development comes as the Eastside rental supply struggles to keep pace with demand. According to reports, the region recorded 728 additional units leased in Q3 of last year, yet an additional 2,273 units would have been required to fully meet renter demand…