BELLEVUE, Wash. – May 2, 2007 – A joint venture of Wright Runstad & Company and Shorenstein Properties LLC closed yesterday on the purchase of a 36-acre site in the Bel-Red corridor of Bellevue, company officials announced. The new owners plan to develop a mixed-use urban village on the property, which is located at 124th Avenue Northeast near Bel-Red Road.

Seattle-based Wright Runstad & Company, one of the nation's premier real estate development and operating companies, and San Francisco-based Shorenstein Properties LLC, one of the oldest and most successful private real estate investment companies active throughout the United States, formed a partnership to buy the property from Safeway Inc.

The site has more than 700,000 square feet of warehouse and cold-storage facilities that Safeway operated before it moved its distribution functions to Auburn in 2005. The joint venture has retained the commercial real estate services company GVA Kidder Mathews to lease the warehouse and cold-storage space for the next several years while the mixed-use project is planned.

The Bel-Red corridor — comprising the area between state Route 520 and Bel-Red Road and from Interstate 405 to the Bellevue-Redmond border — is undergoing significant changes. The city of Bellevue is in the midst of a comprehensive public process to determine the future land use and development direction of the 900-acre corridor. Additionally, Sound Transit plans to extend its light rail system from Seattle through the Bel-Red corridor and into Redmond. Sound Transit is also studying whether to include a station at the site.

"Today's closing is a major milestone in our long-range plan for the property," said Greg Johnson, president of Wright Runstad & Company. "We're very excited to have an opportunity to be involved in the redevelopment of the Bel-Red corridor with a project of this scale. Our vision is for a mixed-use urban village consisting primarily of office and residential buildings supported by attractive public spaces, outdoor recreation areas and neighborhood retail shops and restaurants. We plan to employ state-of-the-art sustainable development techniques and build a strong connection to future light rail. The project will eventually include more than 2.5 million square feet of office space and more than 600 housing units."

The Bel-Red corridor lies directly between the large employment centers of Redmond and downtown Bellevue. In recent years, land values have been increasing in the corridor along with the light-industrial character of the area.

"The Puget Sound region is one of the most dynamic development markets in the country, and Bellevue and the rest of the Eastside show particular promise," said Doug Shorenstein, chairman and CEO of Shorenstein Properties. "That's why we've joined forces with one of the region's foremost developers, Wright Runstad & Company, on this important project."

In response to the changes, and with the planned introduction of high capacity transit to the corridor, the city of Bellevue initiated a comprehensive planning process in 2005 to consider land-use and development alternatives. The City Council appointed stakeholders to the Bel-Red Corridor Steering Committee, which is overseeing the planning process. The city's timeline calls for the Steering Committee to recommend its preferred land-use vision to the City Council this summer for consideration. Adoption of a land-use plan and regulations for the corridor is expected by early 2008.

"It's a very thoughtful, deliberative process that will determine what happens with the 36 acres that we bought with Shorenstein today," said Johnson, whose company has been active as a developer in Bellevue since the early 1980s. "The kind of diverse mixed-use neighborhood that the city envisions will complement and strengthen the downtown core by offering more alternatives for businesses to choose Bellevue as their home. We are excited to be a part of what will surely become one of Bellevue's most vibrant new neighborhoods."

Wright Runstad & Company has developed more than 14 million square feet of office and mixed-use space, primarily in the Pacific Northwest. This Bel-Red mixed-use project will be Wright Runstad & Company's seventh major project in Bellevue and its third venture with Shorenstein Properties.

Shorenstein Properties LLC:

Wright Runstad & Company Background
Seattle-based Wright Runstad & Company (www.wrightrunstad.com) develops, acquires, manages and leases high-quality commercial office buildings located primarily in the Pacific Northwest.  The company has a 35-year history as one of the nation’s premier real estate development and operating companies, delivering outstanding property performance and superior investment returns. Wright Runstad & Company maintains an exceptional reputation among tenants and institutional investors for its demonstrated commitment to integrity and high levels of quality and service.  Wright Runstad & Company employs more than 100 outstanding people, each committed to the company’s core values: integrity, quality and service. Wright Runstad & Company is privately owned by three active principals of the company.

Media Contact :
Media Contacts: Greg Johnson, president, Wright Runstad & Company, (206) 447-9000
Lily Eng, Nyhus Communications LLC for Wright Runstad & Company, (206) 323-3733