The Bravern office towers in downtown Bellevue are facing imminent default on $304 million in mortgage debt, following the departure of Microsoft from the property earlier this year.
The 750,000-square-foot complex, once fully leased by Microsoft since 2009, transferred to a special servicer on Sept. 5, according to a commercial mortgage-backed securities report. Loan servicer notes from Sept. 15 cited concern for an “imminent monetary default” as the reason for the transfer.
The Bravern was purchased in 2020 by Invesco and Australian Retirement Trust (formerly QSuper) from Principal Financial Group in a deal worth about $585 million, according to King County records. At that time, the property was valued at $605 million and fully occupied by Microsoft, which had invested $181 million into the build-out of the towers.
Microsoft announced in 2023 that it would not renew its lease, opting instead to consolidate operations at its Redmond headquarters. The move left the Bravern’s two towers vacant, ending Microsoft’s largest office lease in the Puget Sound region.
With the lease expiration, ownership began marketing the property for multitenant use. The Broderick Group, which is handling leasing, is preparing a stronger effort to attract new tenants. As part of earlier loan agreements, a $30 million “Microsoft Reserve Cap” had been set aside for tenant improvements and leasing commissions in the event the company vacated.
The property’s debt consists of three loans tied to separate commercial mortgage-backed securities trusts, all maturing in January 2027. Though the maturity date is more than a year away, the lack of tenants in a challenging office market has put the owners under pressure.
The Bravern’s valuation has dropped sharply since Microsoft’s departure. In August, global financial company, Morningstar estimated the property’s value at $267.9 million, less than half its $605 million appraisal in early 2020.
