The Baxter, an 80-unit apartment building at 11115 NE 2nd St. in downtown Bellevue, has a new owner. Keelbase Capital, a real estate investment firm based in Seattle, announced on Oct. 14 that it has acquired the five-story building. The firm plans to finish updating the apartments that haven’t been renovated yet and to improve the shared spaces.
What Changes for Residents
The Baxter was built in 1997 and renovated in 2023, and about 80% of its apartments have already been updated. Keelbase says it will complete improvements on the remaining units, upgrade the common areas, and manage and operate the property more hands-on, with the goal of a better experience for residents.
An Unusual Path to Ownership
Keelbase first bought the property’s existing loan from the lender. It then took ownership through a deed-in-lieu, an arrangement where the property is handed over to whoever holds the loan instead of going through foreclosure. The purchase price was not disclosed.
Keelbase started looking at The Baxter more than a year ago, through its longtime relationship with the property’s lender. The firm stayed in talks as market conditions and the property’s circumstances changed. Dylan Simon, Jerrid Anderson and JD Fuller of Kidder Mathews were the exclusive advisors to the lender, which was also the seller.
“We worked closely with the existing lender over an extended period to find a solution that worked for the parties involved and ultimately allowed us to acquire this high-quality asset,” said Cooper Engst, principal and co-founder of Keelbase Capital.
Engst said the building’s previous financing was set up “in a very different interest-rate and valuation environment,” so Keelbase was able to buy in at a better price than it could have several years ago. “We’re beginning to see more situations like this emerge across the market,” he said.
Paul Roeter, Keelbase’s other principal and co-founder, said many lenders are dealing with similar situations right now, and that the firm’s experience and flexibility let it work with them as a constructive partner.
Why Investors Are Watching Downtown Bellevue Apartments
The Baxter is within walking distance of East Link light rail and downtown Bellevue’s major employers. According to the release, Bellevue’s growing technology and AI workforce keeps pushing up demand for rentals. CoStar data shows apartment rents in Bellevue’s central business district rose 5.8% from the year before as of the second quarter of 2026.
Roeter said higher interest rates have pulled property values down at the same time public stock markets have hit record highs. That combination, he said, has pushed private investors to look for more alternative investments.
What’s Next for Keelbase
Keelbase funded The Baxter purchase with a group of private investors and family offices who invested alongside the firm. The firm is also under contract to buy several larger apartment properties in the region with institutional investment partners.
