(Bloomberg) -- KKR & Co. is loaning $469 million for construction of a 25-floor office tower leased to Amazon.com Inc. in Bellevue, Washington, a suburb east of Seattle where technology companies have been expanding.
While uncertainty about post-pandemic demand for offices clouds building values in much of the country, projects leased to blue-chip tenants like Amazon have had an easier time raising money.
The KKR loan is for the Artise, a building developed by Schnitzer West and the Baupost Group. Amazon, which is adding thousands of jobs in Bellevue, said in March the building is scheduled to open in 2024.
“The Artise will be a beautiful addition to Bellevue’s booming downtown technology hub,” Julia Butler, managing director at KKR, said in an email.
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Office vacancies in the Seattle area reached a record 18.6% in the second quarter. Still, demand persists for new space, with 6.4 million square feet (595,000 square meters) under construction, according to a report from Jones Lang LaSalle Inc. In Bellevue, 96% of projects in the development pipeline are leased.
JLL arranged the financing for the Artise, according to a statement.
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