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4/01/25
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Hudson Pacific Properties has secured commercial mortgage-backed securities (“CMBS”) financing for a portfolio of six office properties with total gross proceeds of $475 mil. The portfolio, which comprises assets located throughout the company’s west coast markets, includes 11601 Wilshire, Element LA, 450 Alaskan, 5th & Bell, 275 Brannan and 1740 Technology.
According to Harout Diramerian, Hudson Pacific’s CFO, the new financing will provide the company with nearly half a billion dollars of gross proceeds to fully repay their Element LA secured loan along with outstanding amounts on their credit facility. They expect the moves to put them in position to better address their remaining maturities in the coming years.
The new loan has a five-year term (comprised of a two-year initial term plus three one-year extension options) and an interest rate of 376 basis points over one-month term SOFR. The company used net proceeds to fully repay a $168 mil loan secured by Element LA with the balance used to repay amounts outstanding on the company’s unsecured revolving credit facility and for other general corporate purposes. Goldman Sachs served as Lead Manager and Bookrunner, and Morgan Stanley and Wells Fargo Securities served as Co-Lead Managers and Joint Bookrunners for the CMBS financing.
Following closing of this CMBS loan and the previously announced sale of Foothill Research Center, which closed on March 4, 2025, the company has approximately $815 mil of liquidity, comprised of $752 mil of capacity on its unsecured revolving credit facility and $63 mil of cash and cash equivalents. This excludes $133 mil of additional capital available under the Sunset Pier 94 Studios construction loan, of which HPP’s share is $34 mil.
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