A company called Amazon’s Washington real estate division is expected to buy up and develop the historic Bellevue neighborhood in Seattle.
The deal would include the Bellevue Eastside and Bellevue Westside neighborhoods, and it would likely include the site of the former Bellevue Palace, a former city hall building that is now the state Capitol.
According to Reuters, Amazon is buying a portion of Bellevue for $2.8 billion.
The Bellevue area is considered a popular place to live in the U.S., and it’s a good location for Amazon to get their real estate operations underway, said Mike Lasseter, a real estate broker at The Real Deal Group.
Bellevue has some of the highest median home prices in the city, and Bellevues market is expected “to be a hot market for years to come,” Lasset said.
“The Bellevues community is a very diverse place, and if you’re going to have a massive office development with retail and office and housing, you need to be able to attract and retain those types of people, and Amazon is going to be the best place to do that.”
Lasset says the deal could create an additional $600 million in new investment in Bellevue.
The area has a strong economy and a high proportion of high-income residents.
Bellevues residents have long voted against large office development.
A 2014 study from Seattle-based Demographia found that Seattle was one of only seven major U.s. cities in which more than 50 percent of residents do not own a home, and that residents are “frequently reluctant to sell or move in large numbers.”
A spokesperson for Amazon did not immediately respond to Ars’ request for comment.