Canada Pension Plan Investment Board (CPP Investments) and Hudson Pacific Properties have acquired a 668,000sqft trophy office tower in Seattle for US$625m (€513m).
The property at 1918 Eighth Avenue in Denny Triangle is proximate to Hill7, another office tower bought by CPP Investments and Hudson in 2016.
It is also several blocks from Hudson Pacific’s Washington 1000, a class-A office development site adjacent to the Washington State Convention Center Addition, which has Amazon as its largest tenant.
“Time and again, we’ve had success in growing our portfolio with properties adjacent to existing assets in neighbourhoods undergoing positive transformation, and 1918 Eighth Avenue represents a perfect opportunity to do that once more in Denny Triangle and with our trusted partner CPP Investments,” said Victor Coleman, chairman and CEO of Hudson Pacific.
“With its prime location, modern amenities and tenants backed by superior long-term credit, this investment will build upon our success in downtown Seattle and the Cascadian Innovation Corridor more broadly.”
CPP Investments will own 45% of the latest joint venture, while Hudson will own 55% and will act as general partner and property, leasing and construction manager.
The joint venture partners said they expected to place a secured, non-recourse loan for approximately 50% loan-to-cost from a “prominent institutional lender”.