In June 2025, three major investment firms — U.S.-based Kennedy Wilson and Japanese companies Kenedix and Hulic — completed a significant transaction by jointly acquiring a prime office property in Seattle for €161 million (approximately $173 million). The acquisition marks one of the largest cross-border real estate investments in the United States so far this year and reflects continued international interest in high-quality assets located in dynamic, tech-driven urban markets.
The Acquired Asset: Tower 333
The target of the acquisition is Tower 333, a Class A office high-rise located in the heart of Bellevue, a booming commercial and tech hub in the Seattle metropolitan area. With more than 43,000 square meters of rentable space across 20 floors, the building features modern office layouts, LEED Gold certification, structured parking, wellness and fitness centers, coworking zones, and on-site retail and restaurant options.
Originally built in 2008, Tower 333 has long been regarded as a landmark property in Bellevue. The building is located within close proximity to the regional headquarters of Amazon, Microsoft, Salesforce, Meta, and other major companies, and it benefits from excellent transportation links and local infrastructure.
Deal Structure and Participants
While specific equity breakdowns remain undisclosed, Kennedy Wilson will serve as the operating partner and asset manager, while Kenedix and Hulic have contributed the majority of the capital. The trio formed a joint venture vehicle for the acquisition and future management of the property, allowing for shared responsibility and revenue allocation.
The transaction was brokered by JLL and finalized swiftly, signaling strong alignment among the partners and clear strategic vision. Legal and financial advisors assisted throughout the due diligence and closing process.
Bellevue: A Strategic Submarket
Bellevue has emerged over the past decade as one of the fastest-growing business districts in the U.S. It boasts a high concentration of tech employers, strong demographic growth, and a supportive municipal framework for commercial development. Despite broader headwinds in the office sector, Bellevue has maintained relatively stable leasing activity and tenant demand.
According to CBRE, office vacancy in Bellevue as of early 2025 stands at around 16.1%, notably below the national average. Rents for premium office space in the area range from €45 to €53 per square meter per month, with buildings like Tower 333 commanding top-tier pricing due to their location, amenities, and environmental certifications.
More than 70% of Tower 333’s floorspace is leased to tenants in the technology, legal, and financial services sectors, providing the new owners with immediate income and long-term leasing security.
U.S. Office Market Context in 2025
The U.S. office real estate sector in 2025 is undergoing significant transformation. The shift toward hybrid and remote work models, coupled with tighter monetary policy and higher borrowing costs, has impacted leasing demand in many traditional office markets such as New York City, San Francisco, and Chicago.
Nonetheless, select markets — including Seattle, Austin, and parts of Southern California — have demonstrated relative resilience. These cities continue to attract skilled labor and corporate investment, particularly in tech and life sciences. Bellevue, as part of the Seattle region, benefits from this trend and is increasingly viewed as a long-term growth market for institutional capital.
Data from Real Capital Analytics show that total U.S. office deal volume declined by 32% year-over-year in the first half of 2025. However, trophy assets in high-performing submarkets remain competitive and continue to draw global interest, especially when paired with green building certifications and diversified tenant profiles.
Profiles of the Investors
Kennedy Wilson is a leading real estate investment firm based in California with a portfolio spanning the western U.S. and Europe. The company specializes in acquiring and managing office, residential, and mixed-use assets, with total assets under management exceeding €15 billion.
Kenedix, a Tokyo-based real estate manager affiliated with Sumitomo Mitsui Financial Group, has been actively expanding its overseas portfolio. It is known for targeting stable, income-generating assets with strong ESG credentials in markets such as the U.S., the U.K., and Australia.
Hulic, also based in Japan, is focused on sustainable and long-term real estate investments. Its portfolio includes commercial, hospitality, and residential assets, and it has prioritized energy efficiency and urban redevelopment as key components of its strategy.
Together, the three partners bring complementary strengths and a shared focus on long-term value creation, asset enhancement, and sustainable income generation.
Future Plans for Tower 333
The newly acquired asset is projected to generate a 5.0% to 5.2% cap rate, according to independent market evaluations. In the short term, the owners plan to maintain the current lease structure while undertaking light upgrades to common areas and enhancing ESG features, such as improved energy monitoring and tenant wellness spaces.
Over the medium term, the strategy includes optimizing floor layouts, upgrading technology infrastructure, and expanding ground-floor retail offerings to serve both tenants and the surrounding community.
Given the asset’s strategic location and solid tenant base, the joint venture anticipates consistent cash flow and capital appreciation over the next investment cycle.
Broader Investment Trends
This acquisition reflects a broader trend of increased Japanese investment in U.S. real estate, especially in the wake of prolonged ultra-low interest rates in Japan. Institutional investors in Tokyo are increasingly looking overseas for higher-yielding, stable assets in transparent legal environments.
According to MSCI data, Japanese capital accounted for more than €2.3 billion in U.S. real estate transactions in Q1 2025 alone, with a significant portion directed toward the office sector. While European institutional investment has slowed due to regulatory pressures and domestic constraints, Japanese firms have stepped in to fill the gap.
The deal also underscores a continued global focus on ESG-compliant assets, particularly those that combine energy efficiency with tenant-centric amenities and sustainable urban design.
Conclusion
The €161 million acquisition of Tower 333 by Kennedy Wilson, Kenedix, and Hulic stands out as a strategic bet on the long-term fundamentals of the Seattle office market. At a time when broader segments of the U.S. office market are under strain, this transaction highlights the enduring appeal of prime, well-located, and environmentally certified buildings.
Bellevue’s reputation as a resilient and innovation-driven district, combined with the strong institutional backing of the buyer group, makes Tower 333 a compelling example of how global capital is repositioning itself toward stable, future-ready assets. This deal may signal a turning point for renewed interest in selective U.S. office investments amid a changing economic landscape.
