Hudson Pacific Properties has secured a $475 million commercial mortgage-backed securities (CMBS) loan, supported by a six-building office portfolio spanning key West Coast markets. The real estate investment trust (REIT) was represented by Gibson, Dunn & Crutcher LLP in the transaction, which was announced Monday.
The financing will primarily be used to refinance existing debt, including a $168 million loan tied to the REIT’s Element LA office campus in Los Angeles. According to Hudson Pacific, the funding will also go toward reducing outstanding balances on its credit facility.
“This transaction delivers close to half a billion dollars in gross proceeds, allowing us to fully retire the Element LA loan and reduce our credit facility obligations,” said Harout Diramerian, Chief Financial Officer at Hudson Pacific.
“Coupled with recent and anticipated property sales, this strengthens our liquidity and positions us to more effectively address upcoming debt maturities.”
Portfolio Overview: Strategic Assets Across Major Tech Hubs
The loan is secured by six assets located in California and Washington, reflecting a diversified collection of properties across the REIT’s core markets. These include:
Los Angeles:
11601 Wilshire Blvd. – A 25-story high-rise that serves as the company’s corporate headquarters.
Element LA – A 12-acre creative office campus, home to Riot Games.
Seattle:
450 Alaskan Way – A recently completed, eight-story office development.
5th & Bell – A six-floor property anchored by Amazon.
San Francisco:
- 275 Brannan Street – A fully renovated, three-story building in the SoMa district.
San Jose:
- 1740 Technology Drive – An approximately 216,000-square-foot property in the city’s tech corridor.
Loan Terms and Strategic Outlook
The CMBS loan features an initial two-year term, with the option to extend for three additional one-year periods, providing Hudson Pacific with built-in flexibility as it continues to realign its balance sheet.
A spokesperson for Hudson Pacific declined to offer additional details beyond the company’s public statement.
Source: https://www.law360.com/articles/2317923/gibson-dunn-pilots-hudson-pacific-s-475m-office-financing