Hudson Pacific Properties Launches Impact Investing Platform

LOS ANGELES, CA – Hudson Pacific Properties has launched an impact investing platform, called EquiBlue. The platform seeks to provide economic opportunity and upward mobility for women and people of color by leveraging commercial real estate.

EquiBlue‘s Black- and women-led team will manage a series of private funds on behalf of institutional investors. The platform has an initial capital investment target of $300 million.

Hudson Pacific Properties new platform will focus on transforming obsolete properties into highly-amenitized office and mixed-use space that will directly benefit under-resourced communities and generate strong financial returns.

CBRE will serve as a strategic partner of the new platform. For the platform’s initial fund, Hudson Pacific and CBRE will collectively commit at least 20% of the total capital commitment.

In addition to investing in property revitalization, EquiBlue aims to engage communities around property construction, leasing and operations.

Through its model, the platform will deliver and lease high-end office space to leading tech and media anchor tenants throughout major urban West Coast markets. The platform will also target leasing to local community businesses owned by women and people of color and it will prioritize diverse populations through partner and vendor selection.

Hudson Pacific executives and co-fund managers, Chris Pearson and Chris Lewis will oversee EquiBlue’s day-to-day operations. Hudson Pacific’s Victor Coleman and Laura Campbell will provide additional oversight as investment committee chair and head of investor relations, respectively.

“Commercial development plays a key role in shaping the makeup of a community,” says Pearson. “The last few years inspired a renewed focus for businesses to attract and retain diverse talent beyond city centers and to empower communities. With EquiBlue, we hope to create a new blueprint for real estate investors and corporate tenants alike to be more intentional in promoting holistic economic inclusion and avoiding gentrification.”

The platform’s initial fund is structured with a “community carry share.” The model will return 25% of its carried interest profits to local Community Development Financial Institutions and community partners that will in turn establish small business loan and grant programs to be invested with businesses owned by women and people of color in these communities.

EquiBlue will start raising capital while identifying and evaluating potential investment opportunities in under-resourced markets near Hudson Pacific’s core markets of Los Angeles, the San Francisco Bay Area, Seattle and Vancouver.

“EquiBlue is a natural extension of our industry-leading Better Blueprint ESG program, through which we’ve consistently found innovative ways to leverage our expertise to bring positive change to our business and industry, and strengthen the communities in and around our core markets,” says Victor Coleman, chairman and CEO of Hudson Pacific. “We’re delighted to once again partner with CBRE—this time on an endeavor that is so timely and impactful. Our collective teams, track records and relationships well position us to deliver on EquiBlue’s investment strategy and DEI mission.”

As a strategic partner, CBRE will exclusively provide certain services to the platform, such as investment and leasing brokerage, property and construction management, accounting and reporting. CBRE will also ensure that its EquiBlue-related staff is led by women and people of color.

“EquiBlue is a groundbreaking vehicle that will spur crucially needed investment and economic activity in under-resourced communities,” states Lew Horne, CBRE’s president of advisory services, Greater Los Angeles, Orange County and Inland Empire. “Our team is energized about helping EquiBlue in its mission to diversify the commercial real estate industry while creating positive social impact, and we’ll bring the full scope of CBRE’s services and expertise to this exciting endeavor.”