Hudson Pacific Buys 113,000-SF Office for $28M

TORRANCE, CA-Newly public Hudson Pacific has acquired the 113,000-square-foot Del Amo Office Building here for $27.5 million in an all-cash transaction, the Los Angeles-based REIT reports. The property, which is 100% leased to the Saatchi & Saatchi North America advertising agency, is a five-story structure on 2.3 acres at 3501 Sepulveda Blvd.

Hudson Pacific acquired a 100% ownership of the ground lease for the property, where Saatchi & Saatchi has been a tenant for more than 20 years. Howard Stern, president of Hudson Pacific, cites the acquisition criteria that attracted the company to the deal: He describes it as a well-located, quality suburban office building in "a prime position in an established market, easily accessible from the area’s major thoroughfares with abundant nearby amenities including the Del Amo Fashion Center, one of the largest malls in the US." The seller of the Del Amo property was not disclosed.

Hudson Pacific was formed by former Arden Realty execs Stern and Victor Coleman, who is the company's chairman and CEO. In the company's IPO earlier this year, it issued a total of 14.72 million shares of our common stock in exchange for gross proceeds of approximately $250.2 million, according to Hudson's recently filed quarterly financial report. The company also issued more than 1.1 million shares of common stock in exchange for $20 million in a private placement. Hudson Pacific also reported that it entered into a $200 million senior secured revolving credit facility, with an accordion feature to increase the availability to $250.0 million under specified circumstances.