The Canadian Pension Plan Investment Board and Hudson Pacific Properties have announced their acquisition of a 285,680-square-foot, Class-A office tower, known as "Hill7," for some US$180 million. Under their joint venture, CPPIB will own a 45% interest and Hudson Pacific will own 55%, as well as take charge of property management, leasing, and construction.
The newly constructed 11-storey office building is located in Seattle, which is described as one of the US’s most dynamic office markets. Offering large floorplates, city and water views, modern on-site amenities, and convenient access to the regional transportation system, the property is currently 80.4% leased, with HBO and Redfin as anchor tenants.
"Hill7 is a best-in-class asset with a prime location and strong tenants that perfectly complement our existing Seattle holdings," said Hudson Pacific Properties Chairman and CEO Victor Coleman. “This acquisition continues our strategic objective of investing further in Seattle… We also look forward to continuing our relationship with CPPIB.”
“Hill7 marks our first office real estate investment in Seattle, a key U.S. market with an economically active metropolitan area and strong office employment drivers,” said CCPIB Managing Director for Real Estate Investments Hilary Spann. “We are pleased to expand our relationship with Hudson Pacific, a well-aligned partner who has proven in-depth market knowledge and operating experience in the West Coast market.”
In connection with the acquisition, the joint venture closed a 10-year, secured, non-recourse loan worth $101 million, at a fixed rate of 3.38%, from a prominent institutional lender.
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