Blackstone Acquires Minority Stake in Two Towers in Bellevue

The New York based asset management firm Blackstone has acquired a minority stake in two high-profile office towers in Bellevue, Washington, and the combined value of the two properties in $545 million.

Blackstone has bought a 40% interest in Blocks 5 and 6—two 11-story buildings located in the heart of Bellevue’s Spring District, according to a person familiar with the matter has told Bloomberg.

The Bloomberg report said that the seller, San Francisco-based Shorenstein Investment Advisers, developed the properties as build-to-suit offices for Meta, which maintains a substantial presence in the area.

Both buildings are fully leased to Meta under long-term agreements. In a recent development, software company Snowflake subleased the entirety of Block 6, moving into the space in May 2025, the report said.

The Spring District, a 36-acre mixed-use neighbourhood co-developed by Shorenstein and Wright Runstad & Company, has rapidly transformed from a former industrial site into a vibrant hub for technology companies. The area now features two million sq. ft. of office and retail space, 800 residential units, and a new light rail station, with further expansion planned.

Meta’s expansion in Bellevue has been a key driver of the district’s growth, with the company employing more than 8,000 people in the region and leasing over 1.4 million sq. ft. of office space in the Spring District alone.

The Bellevue office market has shown resilience compared to neighbouring Seattle. While Seattle’s downtown office vacancy rate remains elevated, reaching 26.9% in the first quarter of 2025, Bellevue’s central business district has fared better, with vacancy rates hovering around 15–19%. The area’s appeal is bolstered by its concentration of technology tenants, including Amazon and Salesforce, and its modern, transit-oriented developments, the report said.

Blackstone’s acquisition comes amid a broader strategy to target newer, well-leased office assets in markets showing strong tenant demand.

Blackstone’s President Jon Gray indicated earlier this year that he believed the office market has reached its bottom, and Blackstone has recently made similar investments, such as its purchase of a stake in Manhattan’s 1345 Avenue of the Americas.

Another Transaction

In a parallel transaction, Shorenstein and Wright Runstad & Company also sold Block 13, a nine-story office building in the Spring District, to Drawbridge Realty, a KKR partner. Like Blocks 5 and 6, Block 13 was developed as a build-to-suit office for Meta, further highlighting the area’s attractiveness to both tech tenants and institutional investors.

David Levine, Co-Head of Americas Acquisitions for Blackstone Real Estate, expressed confidence in the region, stating, “We are strong believers in the quality of the Spring District campus and look forward to continuing to invest in the Puget Sound region.”

The transactions underscore a renewed interest from major investors in select office properties, particularly those anchored by technology companies and located in dynamic, mixed-use neighbourhoods.