Hudson Pacific Properties, a provider of end-to-end real estate solutions, announced the completion of a commercial mortgage-backed securities (CMBS) financing for a portfolio of six office properties with total gross proceeds of $475 million. The portfolio, which features assets throughout the company’s West Coast markets, includes 11601 Wilshire, Element LA, 450 Alaskan, 5th & Bell, 275 Brannan, and 1740 Technology.
The loan has a five-year term (featuring a two-year initial term plus three one-year extension options) and an interest rate of 376 basis points over a one-month term SOFR. And the company used net proceeds to fully repay a $168 million loan secured by Element LA with the balance used for repaying amounts outstanding on the company’s unsecured revolving credit facility and for other general corporate purposes.
Following the closing of this CMBS loan and the previously announced sale of Foothill Research Center, which closed on March 4, 2025, the company has approximately $815 million of liquidity, comprised of $752 million of capacity on its unsecured revolving credit facility and $63 million of cash and cash equivalents. And this excludes $133 million of additional capital available under the Sunset Pier 94 Studios construction loan, of which HPP’s share is $34 million.
Goldman Sachs served as Lead Manager and Bookrunner, and Morgan Stanley and Wells Fargo Securities served as Co-Lead Managers and Joint Bookrunners for the CMBS financing.
KEY QUOTES:
“Thanks to the exceptional quality of our properties, tenants and markets, and the strong support of our banking team, we have successfully closed on this significant CMBS financing with favorable terms. This financing provides us with nearly half a billion dollars of gross proceeds to fully repay our Element LA secured loan and outstanding amounts on our credit facility. Along with recent and potential asset sales, we continue to increase liquidity and balance sheet flexibility, putting us at a positive inflection point in our overall strategy to address our remaining maturities in the coming years.”
- Harout Diramerian, Hudson Pacific’s CFO
