TORRANCE, CA-Newly public Hudson Pacific has acquired the113,000-square-foot Del Amo Office Building here for $27.5 millionin an all-cash transaction, the Los Angeles-based REIT reports. Theproperty, which is 100% leased to the Saatchi & Saatchi NorthAmerica advertising agency, is a five-story structure on 2.3 acresat 3501 Sepulveda Blvd.


Hudson Pacific acquired a 100% ownership of the ground lease forthe property, where Saatchi & Saatchi has been a tenant formore than 20 years. Howard Stern, president of Hudson Pacific,cites the acquisition criteria that attracted the company to thedeal: He describes it as a well-located, quality suburban officebuilding in "a prime position in an established market, easilyaccessible from the area’s major thoroughfares with abundant nearbyamenities including the Del Amo Fashion Center, one of the largestmalls in the US." The seller of the Del Amo property was notdisclosed.


Hudson Pacific was formed by former Arden Realty execs Stern andVictor Coleman, who is the company's chairman and CEO. In thecompany's IPO earlier this year, it issued a total of 14.72 millionshares of our common stock in exchange for gross proceeds ofapproximately $250.2 million, according to Hudson's recently filedquarterly financial report. The company also issued more than 1.1million shares of common stock in exchange for $20 million in aprivate placement. Hudson Pacific also reported that it enteredinto a $200 million senior secured revolving credit facility, withan accordion feature to increase the availability to $250.0 millionunder specified circumstances.

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