Hudson Pacific Properties, Inc. (NYSE:HPP), a unique provider of end-to-end real estate solutions for tech and media tenants, today announced the sale of Element LA, a 284,000-square-foot office campus located in West Los Angeles. Hudson Pacific sold the property for $150 million and received a separate $81 million payment for terminating the existing lease. Transfer taxes for the sale transaction were paid by the buyer. The company used the gross proceeds from the sale of the property and the termination of the lease, totaling $231 million, to repay $206 million of CMBS debt associated with the property, with the remainder available for general corporate purposes.
Hudson Pacific acquired the various office and warehouse assets for $101 million over a decade ago and successfully transformed, redeveloped and leased up the property as a creative office campus.
"With the sale of Element LA, we're realizing the value we've created through our successful transformation and full stabilization of this asset," said Victor Coleman, CEO and Chairman of Hudson Pacific. "This strategic capital recycling further strengthens our balance sheet through additional debt reduction while enhancing our liquidity to reinvest into growth opportunities within our existing portfolio, especially throughout the Bay Area and Seattle, where we're seeing the strongest leasing momentum."
About Hudson Pacific Properties
Hudson Pacific Properties (NYSE:HPP) is a real estate investment trust serving dynamic tech and media tenants in global epicenters for these synergistic, converging and secular growth industries. Hudson Pacific's unique and high-barrier tech and media focus leverages a full-service, end-to-end value creation platform forged through deep strategic relationships and niche expertise across identifying, acquiring, transforming and developing properties into world-class amenitized, collaborative and sustainable office and studio space. For more information visit HudsonPacificProperties.com.
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