Kemper Development Company recently secured a $526 million loan for the 1.5 million-square-foot Lincoln Square Expansion currently underway in downtown Bellevue.
The construction-to-permanent loan for the project was facilitated by Kemper Development’s New York-based commercial real estate service firm, Cushman & Wakefield, through an affiliate of the Canada Pension Plan Investment Board.
The CPPIB, a professional investment management organization, independently invests overages from the Canada Pension Plan, the Canadian equivalent to U.S. Social Security. Single-source financing, like that from CPPIB, can appeal to a family-owned company like Kemper Development because it provides a single point of contact for the company. In addition, financing from a single source like CPPIB removes any syndication risks from the equation and helps regulate interest rate risk.
Funds from CPPIB will assist Kemper Development in continuing construction on a 31-story office tower with sky bridge and car tunnel access to the Bellevue Collection, as well as three levels of retail shops. The retail space will sit upon a six-level underground parking structure with more than 4,000 parking spaces, and will feature a luxury theater and a variety of restaurants.
Additionally, a 41-story tower with 231 apartments and a 245-room W Hotel are part of the project.
These additions will join the collection’s already thriving retail space, which includes more than 250 shops, 30 restaurants, a 16-screen cinema, 1,100 luxury hotel rooms, and a plethora of free retail parking.
The expansion and existing space are located on Bellevue Way between NE 4th and NE 10th streets in the heart of downtown, providing ideal transit options for commuters, travelers, and residents alike with access to three of the region’s main thoroughfares: I-405, SR-520, and I-90. Additionally, Bellevue’s newly expanded transit center is only a few blocks away via a pedestrian corridor.
According to the Lincoln Square Expansion Project website, first occupancy of the space is slated for some time in 2016.