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 Mr. 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 trophy office tower and a three-level retail podium, which will be anchored by a luxury theater and chef-driven restaurants. The retail podium and towers will sit above a six-level underground parking garage that is contiguous with more than 4,000 existing subterranean parking spaces.
Located in the heart of Bellevue, the four-million-square-foot Bellevue Collection, owned by Kemper Development Company, includes Bellevue Square, a super-regional upscale shopping center, Bellevue Place, a mixed-use property featuring the Hyatt Regency Bellevue and small boutiques, and Lincoln Square, anchored by Lincoln Square Cinemas, restaurants, home furnishings and The Westin Bellevue. This distinctive collection features 250 of the finest shops, 30 destination restaurants, a 16-screen premier cinema, 1,100 luxury hotel rooms and 10,000 free retail parking spaces, all in one location. The Bellevue Collection is a shopping, dining and nightlife, and entertainment experience unlike any other in the region. It is located on Bellevue Way between NE 4th and NE 10th Streets in downtown Bellevue, just across Lake Washington from Seattle.
About Kemper Development Company
Kemper Development Company is a fourth-generation, family-owned company whose growth has mirrored the astounding boom of the Eastside of Puget Sound. What began as a 16-store shopping center more than 60 years ago has become an internationally renowned hub of life and entertainment, work and leisure, relaxation and pleasure — all at the epicenter of one of the country’s most sophisticated, fastest-growing markets.
About Cushman & Wakefield
Cushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield is among the largest commercial real estate services firms with revenues of $5 billion across core services of agency leasing, asset services, capital markets, facility services (branded C&W Services), global occupier services, investment management (branded DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.