Hudson Pacific Properties has obtained a $475 million commercial mortgage-backed securities (CMBS) loan, a strategic move that reinforces the company's financial position while spotlighting its premium office holdings in California and Washington.
The financing, structured with legal guidance from Gibson, Dunn & Crutcher LLP, is secured by a portfolio of six office properties located in key innovation and business hubs, including Los Angeles, San Francisco, San Jose, and Seattle.
Targeted Use of Funds
Proceeds from the transaction will be used to reduce existing debt obligations, including full repayment of a $168 million loan connected to the company's Element LA campus, and to pay down its corporate credit facility.
“This financing delivers nearly half a billion dollars in capital that enables us to fully repay the Element LA loan while increasing our financial flexibility,” said Harout Diramerian, CFO of Hudson Pacific. “It supports our broader strategy to manage upcoming debt maturities through increased liquidity and selective asset sales.”
The Portfolio: Six Prime Office Properties
The loan is backed by six assets that reflect Hudson Pacific’s strategic presence in top-tier West Coast markets:
Los Angeles:
11601 Wilshire Blvd. – A 25-story tower that serves as Hudson Pacific’s headquarters.
Element LA – A creative campus spanning 12 acres and home to Riot Games.
Seattle:
450 Alaskan Way – A newly completed eight-story office building.
5th & Bell – A six-floor office asset with Amazon as a key tenant.
San Francisco:
275 Brannan Street – A fully renovated three-story office space in SoMa.
San Jose:
1740 Technology Drive – A 216,000-square-foot property located in the heart of the Silicon Valley corridor.
Flexible Terms Support Long-Term Strategy
The financing carries an initial two-year term, with the option to extend annually for up to three additional years. This structure gives Hudson Pacific the breathing room to pursue further asset optimization and liquidity planning.
While no additional comments were provided by the company, the move signals a proactive approach to managing market headwinds while reaffirming confidence in the long-term value of its core holdings.
Source: https://www.law360.com/articles/2317923/gibson-dunn-pilots-hudson-pacific-s-475m-office-financing