The Canada Pension Plan Investment Board (CPPIB) has made its debut in Seattle’s office market through its joint venture with Hudson Pacific Properties.
The partnership paid around $180m (€160.6m) for the Hill7 asset in the city’s Denny Triangle area.
CPPIB first entered a joint venture with Hudson Pacific early last year.
CPPIB and Hudson Pacific will own 45% and 55% interests in the Seattle joint venture, with the latter handling property management, leasing and construction.
Hilary Spann, managing director of real estate investments at CPPIB, said: “Hill7 marks our first office real estate investment in Seattle, a key US market with an economically active metropolitan area and strong office employment drivers.
“This top-tier mid-rise property is an excellent opportunity to gain access to the vibrant Seattle real estate market.”
The 285,680 sq ft, class-A office tower is 80.4% leased, with HBO and Redfin as anchor tenants.
Victor Coleman, chairman and chief executive at Hudson Pacific Properties, said: “Hill7 is a best-in-class asset with a prime location and strong tenants that perfectly complement our existing Seattle holdings.
“This acquisition continues our strategic objective of investing further in Seattle, one of the country’s most dynamic office markets.”
Coleman said the JV would look to add value through the leasing of the asset’s remaining vacancy.
The joint venture said it closed a 10-year, secured, non-recourse loan worth $101m with an institutional lender at a fixed rate of 3.38%.