EDITOR's NOTE: Hudson Pacific on Tuesday priced its stock offering at $15 a share. Shares at midday Tuesday were down 12 cents, or less than 1 percent, to $15.35 on the New York Stock Exchange.
Hudson Pacific Properties Inc. said late Monday that it plans to buy two office-retail complexes in Los Angeles and San Francisco. The deals will be financed as part of an offering of 10 million shares of stock.
The West Los Angeles real estate company said that it has entered into purchase agreements to acquire the Olympic Bundy Media Campus in West Los Angeles for $89 million and the 901 Market Street building in San Francisco for $90 million.
The Olympic Bundy Media Campus comprises of 11.5 acres, with four buildings totaling about 233,600 square feet. The Rubicon Project, an online advertising company, leases about 64 percent of the complex.
The property “represents an exciting opportunity to renovate and reposition a large-scale office location into a modern creative office campus,” the company said in a statement.
901 Market is a historic landmark in the Union Square/South of Market area that has 148,000 square feet of office space and 63,000 square feet of ground and lower level retail space. 901 Market is about 62 percent leased to a diverse tenant base, Hudson said.
Hudson said it will give net proceeds from the stock offering to its operating partnership, which plans to repay indebtedness under its secured revolving credit facility, finance the two acquisitions and use for general corporate purposes.
The company currently has 34 million shares outstanding. Wells Fargo Securities, BofA Merrill Lynch, Barclays and Morgan Stanley are the joint book-running managers for the offering, which will be managed KeyBanc Capital Markets.
Hudson plans to grant the underwriters a 30-day option to purchase up to an additional 1.5 million shares at the public offering price to cover any over allotments. The offering has not yet been priced, but at Monday’s closing price, about $155 million would be raised.
Shares earlier closed down 2 cents, or less than one percent, to $15.47 on the New York Stock Exchange, and fell 4.7 percent in after-hours trading.
For reprint and licensing requests for this article, CLICK HERE.