Avenue Bellevue, the billion-dollar mixed-use development located at 10300 Northeast 8th Street, has undergone a notable change in ownership. Andy Lakha, CEO of Fortress Development, has transferred ownership of the project to an affiliate of Silverstein Capital Partners, according to a recent press release.
This transition follows closely on the heels of the grand opening of the InterContinental Bellevue at The Avenue, which marked the brand’s first domestic launch since 2017 and the first InterContinental hotel in the Pacific Northwest. Silverstein Capital Partners, a New York City-based real estate lender known for providing loans and rescue capital for major properties in North America’s top 20 cities, was an early lender for Avenue Bellevue and has now assumed full control of the property’s management.
Despite the change in ownership, Andy Lakha, who has dedicated nearly a decade to developing Avenue Bellevue, will continue to serve as an ambassador for the property in his role as executive founder.
The InterContinental Bellevue at The Avenue, an ultra-luxury hotel, opened in July 2024. It features 208 rooms, with rates ranging from $500 to $7,200 per night. The hotel offers 12,000 square feet of event space, including a grand ballroom of 4,250 square feet and a junior ballroom of 2,400 square feet, distributed across nine rooms.
The design of the hotel draws inspiration from Bellevue’s natural beauty, with organic aesthetics and a neutral color palette. Dining options include Ce La Vie, a Parisian-inspired cocktail bar and bistro, and Fresco, a breakfast and brunch restaurant highlighting Pacific Northwest ingredients and flavors.
Avenue Bellevue is a two-tower development that includes both a hotel and residential spaces. The South Tower houses 141 Estate Homes, while the West Tower features 224 residences. The project also boasts 85,000 square feet of high-end retail and dining facilities, with tenants such as Jo Malone, the Spanish restaurant Teleferic Barcelona, and the popular ice cream spot Salt & Straw.
Since the opening, all penthouses have been sold, with Penthouse 2603, a 2,871-square-foot unit, recently purchased for $8,975,000. However, studio, one-bedroom, and two-bedroom homes remain available at both Avenue Residences and Avenue Estates.
Notably, the development has set several price records for Washington State, including selling more condominium units over $1,700 per square foot than any other residential project and achieving prices of over $3,000 per square foot for some homes.
“Bellevue has evolved into a dynamic center for innovation, and now has a hotel and residential development that mirrors its bright future,” said Fortress Principal and CEO Andy Lakha. “As a Bellevue resident for more than 20 years, I’m proud to have delivered a project that will set a new standard for hospitality and residential design in the region.”
Shawn Katz, President of Silverstein Capital Partners, commented, “Andy Lakha created a visionary project for Bellevue. We are honored to oversee the project’s continued success.”
It will be interesting to see if Silverstein can lure back big name dining tenants and what their ultimate exit strategy is to recoup the $700 million they sank into it. Daunting task given the bargain basement prices commercial real estate seems to be going for these days. Will be interesting to watch it unfold and to see what Kemper does on the South side of Bellevue Square.
Is this really a deed in lieu of foreclosure wrapped in a pretty PR ribbon?
@Ronald – That is what I surmised as well. I’m sure the business and financial models we’re done well before the pandemic and it wouldn’t be hard to assume that the assumptions were aggressive even for a pre-pandemic development.