Kemper Development Company has paused “The Bellevue,” its planned $1 billion-plus multitower expansion at the southeast corner of Bellevue Square. What happens to the site is now up to whoever buys The Bellevue Collection.
KDC CEO Jim Melby told the Puget Sound Business Journal that the project is on hold indefinitely and won’t move forward under the current ownership. “It will ultimately be (the new owner’s) choice,” Melby said, calling the site “an incredible location and a great development opportunity.”
What Was Planned
KDC first submitted plans for The Bellevue to the city in 2021. As we reported at the time, the mixed-use project would cover about 1.8 million square feet on a 3.6-acre site at 401 Bellevue Way NE, across the street from Bellevue Downtown Park. Kemper Freeman Jr., who was CEO then, described it as a “true five-star experience from one end to the other.”
The original four-tower plan included:
- 234 residential units
- A 157-room hotel
- Nearly 300,000 square feet of retail
- A public plaza
- Six levels of underground parking with room for up to 1,700 vehicles
In 2023, KDC cut the project from four towers to three, totaling nearly 1.75 million square feet. The company said the redesign kept view corridors open while meeting city building requirements. An earlier estimate put construction at more than three years.
The project never broke ground. The site is still used for parking, with a surface lot and a two-story garage.
Why Now
The pause follows the Freeman family’s Aug. 28 announcement that it would explore selling The Bellevue Collection. Earlier this month, KDC hired Eastdil Secured Savills to market the property. Freeman, 84, stepped down as CEO last year.
“It’s a big, complicated project and it requires a lot of capital,” Melby told the Business Journal. He said the company hopes a new owner “can figure it out” and that KDC will hand over all of its project materials to them. Melby estimated the project would cost more than $1 billion and take years to build.
What’s Up for Sale
The Bellevue Collection covers about 5.5 million square feet across Bellevue Square, Bellevue Place and Lincoln Square North and South. It includes three office towers, three hotels, two movie theaters, more than 200 retailers and roughly 50 restaurants. A deal could be among the largest commercial real estate sales in the region’s history.
Melby said KDC is looking for a buyer who can keep developing the property and who understands what it means to Bellevue. “The Bellevue Collection has unlocked potential,” he said. “There’s other people out there with new ideas, and we hope they can take (the property) to a whole new level.”
KDC has not announced a timeline for a sale. The company has said its properties will keep operating as usual in the meantime, and community events, including Snowflake Lane, will go ahead as scheduled through 2026.
This story will be updated as more information becomes available.
