KBS Sells Offices at Riverpark in Downtown Redmond to Palisade Group Joint Venture

REDMOND, Wash. (October 14, 2026) – KBS announced the sale of Offices at Riverpark, a five-story, 107,029-square-foot Class A office building in downtown Redmond, Washington, to a joint venture that includes Palisade Group, a full-service real estate firm. The property is located at 15809 Bear Creek Parkway.

Newmark Co-Head of U.S. Capital Markets Kevin Shannon, Vice Chairmen Michael Moll and Ken White, and Managing Director Liam Ogburn represented KBS in the transaction. The buyer was a joint venture between Palisade Group and Olive Point, and Newmark also arranged acquisition financing for the purchase.

KBS Cites Portfolio Management Approach

KBS described the sale as a reflection of its disciplined portfolio management approach and its strategic investment in the property during its ownership. KBS is a private equity real estate firm and SEC-registered investment adviser that says it has completed more than $45.9 billion in transactions since its founding in 1992.

"Redmond remains one of the strongest office markets on the Eastside, supported by a highly educated talent base, a significant technology workforce and continued investment in infrastructure," said Giovanni Cordoves, KBS' Western regional president. "Throughout our ownership, our team focused on maintaining a high-quality workplace environment and positioning Offices at Riverpark for its next chapter."

Ryan Pires, senior vice president and investment manager for Offices at Riverpark at KBS, said the sale reflects the firm's proactive management of the property. "Throughout our ownership, we invested in improvements including a renovated lobby and new amenity space, helping maintain the property's competitive position in the market," Pires said. "These efforts helped position Offices at Riverpark for a successful transition to new ownership."

Property Details: LEED Silver Office Near Redmond Light Rail

Offices at Riverpark, built in 2008, is a LEED Silver-certified building within the RiverPark mixed-use community. It houses Class A office and medical office space and was approximately 86% leased at the time of sale. Worldscape AI signed a 14,975-square-foot lease at the property in the second quarter of 2026.

The building is less than a 10-minute walk from the Downtown Redmond light rail station and offers direct access to Bellevue and Seattle. It is near the Redmond Central Connector Trail and Redmond Town Center. Recent improvements include a conference and training room, tenant lounge, coffee bar, bike storage, and updated locker and shower facilities, along with the renovated lobby and new amenity space cited by KBS.

KBS acquired the property in 2019 for $48.1 million, or roughly $452 per square foot based on the 106,281-square-foot measurement cited at the time. The asset was reportedly fully occupied when KBS bought it.

Redmond Office Market Context

Redmond is one of the most active office submarkets on Puget Sound's Eastside and is home to Microsoft's global headquarters. According to Newmark Research, Redmond's direct office vacancy rate was 2.8%, the lowest among Eastside submarkets, while average Class A asking rents reached $50.26 per square foot. Newmark's second-quarter report also showed declining vacancy and availability and 72,767 square feet of positive net absorption.

Other market data show a wider vacancy measure. Broderick Group reported Redmond office vacancy of 14.2% in the second quarter of 2026, down from 14.6% in the first quarter and 17.6% at year-end 2025, across approximately 4.08 million square feet of inventory. The submarket recorded positive absorption of 122,620 square feet in the first quarter and 18,853 square feet in the second quarter. The differing vacancy figures likely reflect different definitions and methodologies. Broderick reported Eastside-wide office vacancy of 21.2% in the second quarter and 278,846 square feet of positive quarterly absorption, the Eastside's first positive quarter in more than a year.

Newmark and Legal Advisers on the Sale

"This sale represents a positive sign in investor conviction in the Eastside office market and improving leasing fundamentals that we are seeing drive this tenant led capital markets recovery," said Moll.

Greenberg Traurig LLP attorneys Bruce Fischer and Caroline Pricher, along with paralegal Amanda Kennedy, represented KBS in the transaction. "We were pleased to support KBS through the closing process," said Fischer, chair of the firm's West Coast real estate practice and co-managing shareholder of its Orange County office.

Outlook

The sale adds to Eastside office transaction activity as Redmond's vacancy trends lower, with both Newmark and Broderick data showing positive absorption in the submarket. Newmark's description of a tenant-led recovery points to leasing as the driver of renewed investor interest, though the property's 86% lease rate at sale indicates some space remained available to the new ownership group.

Sources

• KBS: KBS Announces Sale of Offices at Riverpark in Downtown Redmond