The would-be buyer--Michael O'Brien of Mercer Island, owner of the Bellevue Lexus dealership--was chosen from among several bidders that responded to marketing by Pacific Real Estate Partners. O'Brien bid $24.69 million for the property, which will be vacated by the city when its new city hall building is ready for occupancy.
A source at the city tells GlobeSt.com the transaction includes a leaseback agreement where in the city will lease the building from the close of sale, anticipated for Dec. 31, 2003, until March 2006. The agreed upon lease rate is $154,322 per month or $10.89 per sf per year). The lease agreement includes a provision for a no-penalty early termination as well as an extension, says the source.
The City of Bellevue is planning to move City Hall into a 330,000-sf building at 450 110th Avenue Northeast that it recently acquired for $27.5 million. The public will have an opportunity to comment on the sale of the property when the Purchase and Sale Agreement is presented to City Council in mid-June. There will be at least one public hearing on issues related to the transaction.
City officials say O'Brien's offer provides the highest net return for the property and exceeds the assumptions in the finance plan for the purchase and renovations of the city's new building. O'Brien could not be reached for comment Thursday on what he plans to do with the property, but according to a prepared statement, he plans to use the property at least in part for his business. "Locating a property with enough acreage and the right location is extremely difficult in the city of Bellevue," O'Brien said. "This acquisition will allow us to expand our company for several years to come."
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