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Monday, Oct 2, 2023

Hudson Sells Two, Nets More Than $72M

Brentwood-based developer and real estate investment trust firm Hudson Pacific Properties Inc. recently unloaded two large Santa Monica office properties, equating to over $72 million in sales.

The two buildings, which are located at 604 Arizona Ave. and 3401 Exposition Blvd., are both fully occupied and together house tenants including ZipRecruiter, Method Studios, Greenspire and Bonfire. 

The buyers of the office buildings were not disclosed. 

The sales come not long after Hudson Pacific reported a $31 million revenue loss in the seconding quarter, a direct result of the ongoing Hollywood strikes, which is surely impact its business.

Hudson Pacific Properties, which has coined itself as a “visionary real estate company focused on epicenters of innovation for media and tech” owns a vast number of sound stages and other office and entertainment-focused properties.

During the second quarter, Santa Monica office properties were 23.5% vacant, up from 21.6% during the same time period last year, according to data from Jones Lang LaSalle Inc. Despite that vacancy rate, asking rents were still high in the city. The average asking rent per square foot for Santa Monica office properties during the quarter was $6.29, up 4 cents from the second quarter of last year, according to JLL data. 

In total, the two separate transactions raised $72.5 million in aggregate gross proceeds – before prorations and closing costs. The sales are expected to result in a $22 million gain for the company, which will be recognized in the third quarter.

According to a statement from Hudson Pacific, “the company used net proceeds to repay amounts outstanding on its unsecured revolving credit facility.”

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