SAN FRANCISCO– Hudson Pacific Properties Inc. completed its previously announced acquisition of Equity Office Properties' Peninsula and Silicon Valley portfolio from Blackstone Real Estate Partners V and VI for approximately 63.5 million common shares and operating partnership units and $1.75 billion in cash (before certain credits, proration adjustments and closing costs). The EOP Northern California portfolio consists of 26 high-quality office assets totaling approximately 8.2 million square feet and two development parcels in prime Bay Area submarkets. In addition to a roster of blue-chip tenants, the portfolio's below-market rents and occupancy provide Hudson the opportunity to create value by leveraging leasing and repositioning expertise. Upon closing, Hudson's combined portfolio totals 53 properties or 17.3 million square feet, including land for development in high-growth, high-barrier-to-entry submarkets throughout Northern and Southern California as well as the Pacific Northwest.
Victor J. Coleman, Hudson's chairman and chief executive officer, tells GlobeSt.com: “The transaction's closing is a momentous event for our company. These 26 assets are located in some of the most sought-after real estate markets in the U.S., and have a strong tenancy of leading growth and Fortune 500 companies – several in the tech sector, which perfectly aligns with our existing portfolio and strategy. Our team has executed flawlessly to date. I'm confident that with the same level of diligence and determination, we are well prepared to take on the work that lies ahead.”
Hudson's board of directors has appointed Frank Cohen, senior managing director of Blackstone and global head of core + real estate, Michael Nash, senior managing director of Blackstone and chief investment officer of Blackstone real estate debt strategies, and John Schreiber, partner and co-founder of Blackstone Real Estate Advisors, as members of the board.
“We are thrilled to own a major stake in Hudson and have been very impressed by the management team and their excellent progress on leasing to date,” said Cohen. “We continue to believe strongly in the upside potential of the company and look forward to working closely together.”
Hudson is a vertically integrated real estate company focused on acquiring, repositioning, developing and operating high-quality office along with state-of-the-art media and entertainment properties in select West Coast markets. Hudson invests across the risk-return spectrum, employing leasing, capital investment and management expertise to create additional value. Founded in 2006 as Hudson Capital, it went public in 2010, electing to be taxed as a real estate investment trust. As a long-term owner, Hudson prioritizes tenant satisfaction and retention, providing customized build-outs and working proactively to accommodate tenants' growth. Hudson's corporate headquarters are in Los Angeles and the company also has offices in San Francisco and Seattle. Hudson trades as a component of the Russell 2000® and the Russell 3000® indices.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
