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.
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