Hudson Pacific Properties Further Expands Seattle Portfolio with Office Acquisition

Rhea-AI Summary

Hudson Pacific Properties (NYSE: HPP) has acquired a leasehold interest in the 5th & Bell office building in Seattle for $119 million. The property, comprising 197,000 square feet, is fully leased to Amazon and features modern amenities. This acquisition, funded through a preferred stock offering and a $75 million draw on its credit facility, expands Hudson Pacific's Class A portfolio in the Denny Triangle submarket to nearly 2 million square feet. The company emphasizes that this transaction is expected to be immediately accretive to shareholders.

Positive

• Acquisition of 5th & Bell increases Class A office portfolio to nearly 2 million square feet.
• Property fully leased to Amazon, providing stable income.
• Transaction considered immediately accretive to Hudson Pacific.

Negative

• None.

Second immediately accretive, credit-anchored Class A office asset in Denny Triangle submarket acquired since December 2020

LOS ANGELES--(BUSINESS WIRE)-- Hudson Pacific Properties, Inc. (NYSE: HPP) today announced that it has purchased a leasehold interest in a 197,000-square-foot office building in Seattle for $119 million, or $602 per square foot (before closing costs and prorations). The property’s office component, which comprises approximately 192,000 square feet, is fully leased to Amazon. The remaining term on the ground lease is 50 years.

Known as 5^th & Bell, the property is located in Seattle’s Belltown neighborhood, which sits at the intersection of South Lake Union and Denny Triangle. The six-story, LEED Gold-certified property features large floorplates and a modern lobby, as well as numerous onsite amenities, including an expansive outdoor deck, an end-of-trip facility with showers, lockers and bike storage, retail and ample parking.

With the acquisition of 5^th & Bell, Hudson Pacific’s Class A portfolio in the thriving Denny Triangle submarket has grown to nearly two million square feet. It includes 1918 Eighth, Hill7, Met Park North, as well as the company’s planned state-of-the-art Washington 1000 development, which will be surrounded by new streetscaping and amenities associated with the Washington State Convention Center addition. In aggregate, Hudson Pacific’s Greater Seattle portfolio now totals nearly three million square feet.

“With the purchase of 5^th & Bell and 1918 Eighth, we have nearly doubled our portfolio of premier quality, long-term credit-tenant anchored office assets in the dynamic Denny Triangle submarket—and we have done so through transactions that are immediately accretive to the company,” said Victor Coleman, Chairman and CEO of Hudson Pacific. “Our portfolio uniquely positions us to preserve and create value for our shareholders in Seattle, which remains one of the strongest office markets in the country.”

Hudson Pacific funded the acquisition with a combination of proceeds from the company’s recently closed preferred stock offering and a $75 million draw on its revolving credit facility.

About Hudson Pacific Properties

Hudson Pacific is a real estate investment trust with a portfolio of office and studio properties totaling over 20 million square feet, including land for development. Focused on global epicenters of innovation, media and technology, its anchor tenants include Fortune 500 and leading growth companies such as Google, Netflix, Riot Games, Square, Uber and more. Hudson Pacific is publicly traded on the NYSE under the symbol HPP and listed as a component of the S&P MidCap 400 Index. For more information visit HudsonPacificProperties.com.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the Company’s control, which may cause actual results to differ significantly from those expressed in any forward-looking statement. All forward-looking statements reflect the Company’s good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the Company’s future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission, or SEC, and other risks described in documents subsequently filed by the Company from time to time with the SEC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211223005114/en/

Investor Contact

Laura Campbell

Executive Vice President, Investor Relations & Marketing

(310) 622-1702

lcampbell@hudsonppi.com

Media Contact

Laura Murray

Director, Communications

(310) 622-1781

lmurray@hudsonppi.com

Source: Hudson Pacific Properties, Inc.

FAQ

What is the recent acquisition by Hudson Pacific Properties?

Hudson Pacific Properties has acquired the leasehold interest in the 5th & Bell office building in Seattle for $119 million.

How will the acquisition of 5th & Bell impact Hudson Pacific's portfolio?

The acquisition increases Hudson Pacific's Class A office portfolio in the Denny Triangle submarket to nearly 2 million square feet.

Who is the primary tenant of the 5th & Bell office building?

The 5th & Bell property is fully leased to Amazon.

How was the acquisition of 5th & Bell funded?

The acquisition was funded through proceeds from a preferred stock offering and a $75 million draw on Hudson Pacific's revolving credit facility.

What are the expected benefits of the acquisition for Hudson Pacific's shareholders?

The acquisition is expected to be immediately accretive, enhancing value for shareholders.