Hudson Pacific Properties (NYSE:HPP) and Canada Pension Plan Investment Board agree to buy through a joint venture a 688K-square-foot office tower in Seattle for US$625M.
CPP Investments will own a 45% in the joint venture with HPP owning the remaining 55% and acting as general partner and as property, leasing, and construction manager.
The deal is expected to close in Q4 2020.
The joint venture expects to place a secured, non-recourse loan for ~50% loan-to-cost from an institutional lender.
The building, 1918 8th Avenue, is 98% leased with an average remaining lease term of 10 years and Amazon as its largest tenant occupying a majority of the building.
The acquisition adds to HPP’s other holdings in the city. It’s near Hill7, which is also jointly owned by HPP and CPP Investments, and a few blocks from HPP’s Washington 1000, a class A office development site adjacent to the Washington State Convention Center Addition.
