Hudson Pacific Properties Inc. on Wednesday said it has commenced an underwritten public offering of 8.25 million shares. The Los Angeles real estate company also announced an agreement to purchase a waterfront office and retail property near Seattle’s historic Pioneer Square.
After the markets closed, Los Angeles real estate company said part of net proceeds from the stock sale will help pay for Merrill Place, the Seattle property. The company now has 56.7 million shares outstanding.
Underwriters will have a 30-day option to purchase as much as 1.24 million additional shares.
Merrill Place, which consists of 179,000 square feet of office and ground floor retail plus parking, is next to the Hudson Pacific’s First & King property. The property is being acquired in an off-market transaction from a joint venture for about $57.7 million. The company plans to upgrade and reposition the property, which is home to four interconnected brick and beam buildings covering a city block.
“We are very pleased to announce this opportunity to increase our footprint in the Pacific Northwest," Chief Victor J. Coleman said in a statement. "The acquisition of Merrill Place represents an excellent opportunity for Hudson to expand in one of the fastest growing submarkets for technology tenants in Downtown Seattle.”
Shares earlier closed up 7 cents, or less than 1 percent, to $22.22 on the New York Stock Exchange.