The Australian Retirement Trust, the nation’s No. 2 pension fund, is defaulting on a loan that funded the purchase of a Bellevue office complex once occupied by Microsoft, underscoring the continued fallout for global investors as companies revise their office space.

The two towers seemed like a safe bet for their Australian buyer in early 2020, packed with thousands of Microsoft workers. But the tech giant vacated the complex as hybrid work trends and job cuts allowed it to consolidate offices in the years following the pandemic, leaving both buildings empty in an area where nearly a fifth of space is now vacant.

The mortgage on The Bravern complex in Bellevue was transferred to a special servicer this month after Microsoft’s lease expired in August, according to filings on the debt. AR

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