CPPIB provides $526m loan on mixed-use Washington development

An affiliate of CPPIB Credit Investments, a wholly owned subsidiary of Canada Pension Plan Investment Board, has provided a $526m construction-to-permanent loan for the 1.5 million-square-foot expansion of the Bellevue Collection known as Lincoln Square Expansion in Bellevue, Washington.

An affiliate of CPPIB Credit Investments, a wholly owned subsidiary of Canada Pension Plan Investment Board, has provided a $526m construction-to-permanent loan for the 1.5m sq ft expansion of the Bellevue Collection known as Lincoln Square Expansion in Bellevue, Washington.

The financing includes an up to three-year, fixed-rate loan that converts to “four distinct long-term loans,” according to Cushman & Wakefield, which arranged the financing.

LSE-pdm-nw1-030113The single source of capital was attractive to the borrower, Kemper Development Company, removing syndication risk and providing a single point of contact for the financing of a 41-story multifamily/W Hotel tower, a 31-story trophy office tower, a three-level retail podium and a six-level underground parking garage.

“CPPIB Credit’s long-term view and flexible balance sheet were a perfect match to Kemper Development Company’s desire to not only manage interest rate risk, but also achieve portfolio-wide goals to stagger loan maturities and manage liquidity,” said Christa Chambers, CFO at Kemper Development Company.

The development is part of Kemper’s 4m sq ft Bellevue Collection, which includes the Bellevue Square regional shopping center; Bellevue Place, a mixed-use property featuring the Hyatt Regency Bellevue and small boutiques; and Lincoln Square, anchored by Lincoln Square Cinemas, restaurants, home furnishings and The Westin Bellevue.

The center includes 250 shops, 30 restaurants, a 16-screen cinema, 1,100 hotel rooms and 10,000 free parking spaces. It is located on Bellevue Way between NE 4th and NE 10th Streets in downtown Bellevue, just across Lake Washington from Seattle.

A Cushman & Wakefield team of Dave Karson, Alex Hernandez and Chris Moyer represented the borrower.

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