The Canada Pension Plan Investment Board has acquired an office building in Seattle with real-estate investor Hudson Pacific Properties Inc. for approximately US$180 million.
CPPIB will own a 45 per cent interest in Hill7, an 11-storey office tower, while Hudson Pacific Properties will own 55 per cent and oversee property management, leasing and construction.
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“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 Hilary Spann, managing director of real estate investments at CPPIB.
“This top-tier mid-rise property is an excellent opportunity to gain access to the vibrant Seattle real estate market. 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.”
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Along with the acquisition, the joint venture closed a 10-year, secured, non-recourse loan of $101 million from an institutional lender at a fixed rate of 3.38 per cent.