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Debt & Equity

Cushman secures developerʼs $526M construction loan

Cushman & Wakefield has represented Kemper Development Company in arranging a $526 million construction-to-permanent loan for the 1.5 million-square-foot expansion of the Bellevue Collection known as Lincoln Square Expansion in Bellevue, Washington.

Rendering of the Lincoln Square expansion
Rendering of the Lincoln Square expansion

Financing was provided by an affiliate of CPPIB Credit Investments Inc. (CPPIB Credit), a wholly owned subsidiary of Canada Pension Plan Investment Board (CPPIB).

The single source of capital was attractive to the borrower as it removed syndication risk and provides a single point of contact.

“These assets will be with the family for generations, and CPPIB Credit’s long-term view and flexible balance sheet were a perfect match to Kemper Development Company’s desire to not only manage interest rate risk, but also achieve portfolio-wide goals to stagger loan maturities and manage liquidity,” said Christa Chambers, chief financial officer at Kemper Development Company.

A Cushman & Wakefield Equity, Debt & Structured Finance team of Dave Karson, Alex Hernandez and Chris Moyer represented Kemper Development Company in the financing, which includes a fixed interest rate priced up to three years forward and converts to four distinct long-term loans.

“This was a rare opportunity to establish a relationship with one of the region’s long-standing real estate families and the top owner in the market, in the most successful complex in affluent downtown Bellevue, and with a strong global institutional investor,” said Karson, an executive managing director at Cushman & Wakefield who is based in New York.

“The expanded property will be one of the top integrated live-work-play destinations in the country and is still owned by the family that built the mall 70 years ago.”

The development is underway and will consist of a 41-story multifamily/W Hotel tower, a 31-story office tower and a three-level retail podium, which will be anchored by a luxury theater and restaurants. The retail podium and towers will sit above a six-level underground parking garage contiguous with 4,000 existing parking spaces

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