LOS ANGELES—Hudson Pacific Properties has entered into an agreement to purchase its corporate headquarters office at 11601 Wilshire Blvd. in West Hollywood for $311 million from Blackstone. The class-A office tower is 83% leased and offers a value-upside for Hudson Pacific. The transaction is expected to close on July 31, 2016.
“11601 Wilshire is the gateway to the Westside office corridor. It's a Class A asset with a premier location and value-add component that complements our team's repositioning capabilities and our larger West Los Angeles portfolio,” Victor Coleman, CEO of Hudson Pacific Properties, tells GlobeSt.com. “The building has been Hudson Pacific's corporate headquarters since our 2010 IPO, so we're already invested in the property; it makes perfect sense for us to own it long-term. We've also recently sold several non-core assets, all at nice profits. Our 11601 Wilshire acquisition allows us to recycle some of that capital into a higher yield opportunity.”
Hudson Pacific has occupied the property since 2010, and is a significant tenant in the building. Blackstone brought the property to market and saw tremendous interest; however, Coleman says that the firm's tenancy in the building gave them a competitive advantage over other buyers. “It was a competitive process, although we were at a distinct advantage given prior ownership and longstanding occupancy of the property,” he says. “We know this asset incredibly well and how to maximize its value.” The firm used proceeds from recent dispositions, including the sale of One Bay Plaza and 12655 Jefferson, to fund the acquisition.
Hudson Pacific is planning to renovate the property, lease-up and push rents in a value-add play. “11601 Wilshire is an excellent repositioning opportunity,” adds Coleman. “It is about 83% occupied with in-place rents more than 20% below market. We're in the process of refining a detailed plan that will enable us to really elevate the property and create value, specifically through vacancy lease-up, mark-to-market on in-place rents, and improved operating efficiencies.”
Coleman did not give specific details on the firm's renovation plans.
LOS ANGELES—Hudson Pacific Properties has entered into an agreement to purchase its corporate headquarters office at 11601 Wilshire Blvd. in West Hollywood for $311 million from Blackstone. The class-A office tower is 83% leased and offers a value-upside for Hudson Pacific. The transaction is expected to close on July 31, 2016.
“11601 Wilshire is the gateway to the Westside office corridor. It's a Class A asset with a premier location and value-add component that complements our team's repositioning capabilities and our larger West Los Angeles portfolio,” Victor Coleman, CEO of Hudson Pacific Properties, tells GlobeSt.com. “The building has been Hudson Pacific's corporate headquarters since our 2010 IPO, so we're already invested in the property; it makes perfect sense for us to own it long-term. We've also recently sold several non-core assets, all at nice profits. Our 11601 Wilshire acquisition allows us to recycle some of that capital into a higher yield opportunity.”
Hudson Pacific has occupied the property since 2010, and is a significant tenant in the building. Blackstone brought the property to market and saw tremendous interest; however, Coleman says that the firm's tenancy in the building gave them a competitive advantage over other buyers. “It was a competitive process, although we were at a distinct advantage given prior ownership and longstanding occupancy of the property,” he says. “We know this asset incredibly well and how to maximize its value.” The firm used proceeds from recent dispositions, including the sale of One Bay Plaza and 12655 Jefferson, to fund the acquisition.
Hudson Pacific is planning to renovate the property, lease-up and push rents in a value-add play. “11601 Wilshire is an excellent repositioning opportunity,” adds Coleman. “It is about 83% occupied with in-place rents more than 20% below market. We're in the process of refining a detailed plan that will enable us to really elevate the property and create value, specifically through vacancy lease-up, mark-to-market on in-place rents, and improved operating efficiencies.”
Coleman did not give specific details on the firm's renovation plans.
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