Key Takeaways
- • Keelbase Capital, a Seattle-based real estate investment firm, announced the acquisition of The Baxter, an 80-unit apartment community in downtown Bellevue, Wash., per a PRWeb press release dated October 20, 2026.
- • The deal was structured as a deed-in-lieu: Keelbase acquired the existing loan from its lender and then completed a deed-in-lieu to take ownership of the property.
- • The transaction was capitalized with a group of private investors and family offices that invested alongside Keelbase, and the firm is under contract on several larger multifamily acquisitions with institutional partners.
- • The five-story property, built in 1997 and renovated in 2023, is roughly 80% renovated; Keelbase plans to finish the remaining units and upgrade common areas and asset management.
- • Keelbase cites Bellevue's technology and AI employment base and 5.8% year-over-year CBD apartment rent growth as of Q2 2026 (per CoStar) as demand drivers.
Summary
Keelbase Capital, a Seattle-based real estate investment firm focused on private credit and value-add acquisitions, has acquired The Baxter, an 80-unit apartment community at 11115 NE 2nd St. in downtown Bellevue, Washington, according to a PRWeb press release issued October 20, 2026. The five-story property was built in 1997 and renovated in 2023 and sits within walking distance of the East Link light rail and downtown Bellevue's major employers.
The acquisition was executed through a negotiated deed-in-lieu structure. Keelbase had evaluated the asset for more than a year through an existing relationship with the property's lender. Keelbase acquired the existing loan and then completed a deed-in-lieu to take title. Dylan Simon, Jerrid Anderson, and JD Fuller of Kidder Mathews served as exclusive advisors to the lender/seller. Co-founders Cooper Engst and Paul Roeter described the entry point as more attractive than would have been possible several years ago, citing the prior capital structure's origination in a different interest-rate and valuation environment.
The deal was funded with a group of private investors and family offices that invested alongside Keelbase. The press release also states the firm is under contract on several larger multifamily acquisitions with institutional investment partners, which the company characterizes as an active period of regional multifamily investment.
According to the release, Bellevue's expanding technology and AI employment base continues to support rental demand, with the CBD posting 5.8% year-over-year apartment rent growth as of Q2 2026, per CoStar. Approximately 80% of the units have already been renovated. Keelbase plans to complete improvements on the remaining units, enhance common areas, and implement hands-on asset management and operational changes. Roeter linked the opportunity to elevated interest rates depressing asset values alongside record public equity markets, which he said has pushed private capital toward alternatives. Engst said the firm expects more similar situations to emerge across the market, and Roeter said numerous lenders are working through comparable situations.
The acquisition was executed through a negotiated deed-in-lieu structure. Keelbase had evaluated the asset for more than a year through an existing relationship with the property's lender. Keelbase acquired the existing loan and then completed a deed-in-lieu to take title. Dylan Simon, Jerrid Anderson, and JD Fuller of Kidder Mathews served as exclusive advisors to the lender/seller. Co-founders Cooper Engst and Paul Roeter described the entry point as more attractive than would have been possible several years ago, citing the prior capital structure's origination in a different interest-rate and valuation environment.
The deal was funded with a group of private investors and family offices that invested alongside Keelbase. The press release also states the firm is under contract on several larger multifamily acquisitions with institutional investment partners, which the company characterizes as an active period of regional multifamily investment.
According to the release, Bellevue's expanding technology and AI employment base continues to support rental demand, with the CBD posting 5.8% year-over-year apartment rent growth as of Q2 2026, per CoStar. Approximately 80% of the units have already been renovated. Keelbase plans to complete improvements on the remaining units, enhance common areas, and implement hands-on asset management and operational changes. Roeter linked the opportunity to elevated interest rates depressing asset values alongside record public equity markets, which he said has pushed private capital toward alternatives. Engst said the firm expects more similar situations to emerge across the market, and Roeter said numerous lenders are working through comparable situations.
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