Hudson Pacific Properties to Acquire Office Portfolio for $367.5M

SEATTLE-Hudson Pacific Properties, Inc. has entered into a purchase agreement to acquire a four-building, 836,419 square-foot office portfolio here. The acquisition is subject to customary closing conditions. In separate transactions, the company also announced today the acquisition of 3401 Exposition Boulevard in Santa Monica, CA, and the disposition of its City Plaza property in Orange County, CA.

 Hudson Pacific plans to purchase the Seattle office portfolio from Spear Street Capital for approximately $367.5 million. The company expects to close the transaction by the end of July. The purchase price is expected to be paid from a combination of cash-on-hand, asset-level indebtedness and the company’s corporate credit facility. The assets in the portfolio consist of:

• 505 First Street & 83 King, situated along the waterfront in Pioneer Square and adjacent to the Alaskan Way Viaduct redevelopment project, the two-building, 472,881 square-foot project combines a historic, brick and timber building with a newly constructed creative office building. Originally renovated and developed by Starbucks Coffee Company, the project is 90% leased to such tenants as Capital One/ING Direct, EMC Corporation and Nuance Communications. The asset’s waterfront location affords views of Elliott Bay, Olympic Mountain Range and Downtown Seattle and access to the burgeoning amenities of Pioneer Square, CenturyLink Field and Safeco Field.

• Met Park North, located in South Lake Union, one of the most competitive submarkets in Downtown Seattle, the property contains 189,762 square feet and is approximately 99% leased, with 74% of the building to be occupied by Amazon.com, Inc. under a lease expected to commence November 2013 through October 2023.

• Northview Center, situated in the Edmonds/Lynnwood submarket of Seattle’s Northend, the property contains 173,776 square feet and is 89% leased to such tenants as ADP and FEMA. The property has an in-place average remaining lease term of 4.7 years with no significant rollover until 2016.

“We are very pleased to announce Hudson Pacific Properties’ entry into the Pacific Northwest with these compelling assets,” said Victor Coleman, chairman and CEO of Hudson Pacific Properties, Inc. “Seattle has long been a target market for us. We believe the region’s underlying economic fundamentals are among the best in the nation and rival those of San Francisco and West Los Angeles, two of our other core markets. The purchase of this sizable portfolio also provides us immediate critical mass in the region, with a beachhead in some of the most vibrant submarkets in Downtown Seattle. Importantly, we expect the strong occupancy and high quality tenancy to offer stable cash-flow over the near-term and will be immediately accretive for Hudson.”