Hudson Pacific and CPP Investments Acquire Seattle Tower from JPMorgan Chase
Posted on 11/30/2020
Listed REIT Hudson Pacific Properties, Inc. and Canada Pension Plan Investment Board (CPP Investments) signed an agreement to purchase through a joint venture a 668,000-square-foot trophy office tower in Seattle for US$ 625 million (before closing adjustments). CPP Investments will own a 45% interest in the joint venture and Hudson Pacific will own 55% and act as general partner and as property, leasing and construction manager. The deal is expected to close in the fourth quarter of 2020. 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 LEED Platinum certified tower was completed in 2010.
Location: 1918 8th Avenue, Seattle WA.
The building is near Hill7, which is also jointly owned by Hudson Pacific and CPP Investments.
In conjunction with the transaction, the joint venture expects to place a secured, non-recourse loan for approximately 50% loan-to-cost from an institutional lender. Hudson Pacific will provide further details as to the transaction’s financial impact at closing.
1918 8th Avenue building was developed by Schnitzer West, LLC. In May 2011, Schnitzer West sold two office buildings in downtown Seattle for a total of US$ 479.4 million. The 1918 8th Avenue building sold for US$ 350.1 million. The 818 Stewart building sold for US$ 129.3 million. An affiliate of JPMorgan Chase bought the 1918 8th Avenue building from Schnitzer West in 2011.