Hudson Pacific Properties Inc. announced the sale of Element LA, a 284,000-square-foot office campus located in West Los Angeles, for $150 million. Hudson Pacific also 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 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.”
