Greenbaum Home Furnishings and Renaissance Rug Corporation are set to lose their home on 118th Avenue SE after Bellevue-based developer American Capital Group filed for permits to demolish the 1982 retail building and construct a nine-story residential tower called The Kelsey.
Demolition permits are already in process, the Daily Journal of Commerce reported in June.
The project at 929 118th Ave. SE, between Mercer Slough and Interstate 405, would replace a 32,000-square-foot retail structure with roughly 349,000 square feet of housing on 1.7 acres. ACG filed for Design Review and Shoreline Substantial Development permits, according to the Downtown Bellevue Network, which reported the filing on Tuesday, July 8.
No going-out-of-business sale has been announced for either tenant as of the DJC's June reporting.
Who it affects
The Kelsey would be the second major residential project on the 118th Avenue SE corridor in West Bellevue. It would rise next to Altaire at East Main, a 146-unit income-restricted apartment community already under construction at 995 118th Ave. SE. Together, the two projects would add 368 units to the corridor, within a half-mile walk of the East Main light rail station.
The numbers
ACG's current design calls for nine stories with apartments ranging from studios to three-bedroom units. About 45 of the 222 units — roughly 20% — would be reserved for households earning up to 80% of area median income, according to the DJC. The building would include 279 structured parking stalls on above- and below-grade levels, plus 50 bike-parking stalls.
Amenity space totals about 12,300 square feet: a fitness center, spa, coworking space, resident lounge, and game room indoors, with courtyards on the second level, a terrace on the fifth level, and a rain garden at ground level.
Construction is scheduled to begin in September 2027 and finish in September 2029.
The developer
American Capital Group, founded in 1987, acts as its own builder and architect. The firm's in-house design department is led by Anna Lancaster, who joined from SMR Architects in late 2023, according to the DJC. CEO Benjamin Kuula also leads ACG's 453-unit Foundry project in Kirkland, which broke ground in September 2025.
The Puget Sound Business Journal reported on June 30 that Kinect Real Estate Partners closed a $126.5 million fund for apartment projects including ACG developments, with ACG planning to begin work on The Kelsey late in 2027.
What's next
The project remains in the permit-filing stage. No city hearing date for the Design Review or Shoreline Substantial Development applications has been publicly scheduled. Bellevue's comprehensive plan targets 35,000 new housing units by 2044 — about 1,550 per year — a figure cited at a 2024 Bellevue Downtown Association housing panel.
