(EDITOR’S NOTE: According to public records, the seller is Alexandria Real Estate Equities, based in Pasadena, Calif.)
LOS ANGELES— Hudson Pacific Properties, Inc. (NYSE: HPP) today announced that it has purchased a leasehold interest in a 197,000-square-foot office building in Seattle for $119 million, or $602 per square foot (before closing costs and prorations). The property’s office component, which comprises approximately 192,000 square feet, is fully leased to Amazon. The remaining term on the ground lease is 50 years.
Known as 5th & Bell, the property is located in Seattle’s Belltown neighborhood, which sits at the intersection of South Lake Union and Denny Triangle. The six-story, LEED Gold-certified property features large floorplates and a modern lobby, as well as numerous onsite amenities, including an expansive outdoor deck, an end-of-trip facility with showers, lockers and bike storage, retail and ample parking.
With the acquisition of 5th & Bell, Hudson Pacific’s Class A portfolio in the thriving Denny Triangle submarket has grown to nearly two million square feet. It includes 1918 Eighth, Hill7, Met Park North, as well as the company’s planned state-of-the-art Washington 1000 development, which will be surrounded by new streetscaping and amenities associated with the Washington State Convention Center addition. In aggregate, Hudson Pacific’s Greater Seattle portfolio now totals nearly three million square feet.
“With the purchase of 5th & Bell and 1918 Eighth, we have nearly doubled our portfolio of premier quality, long-term credit-tenant anchored office assets in the dynamic Denny Triangle submarket—and we have done so through transactions that are immediately accretive to the company,” said Victor Coleman, Chairman and CEO of Hudson Pacific. “Our portfolio uniquely positions us to preserve and create value for our shareholders in Seattle, which remains one of the strongest office markets in the country.”
Hudson Pacific funded the acquisition with a combination of proceeds from the company’s recently closed preferred stock offering and a $75 million draw on its revolving credit facility.
About Hudson Pacific Properties
Hudson Pacific is a real estate investment trust with a portfolio of office and studio properties totaling over 20 million square feet, including land for development. Focused on global epicenters of innovation, media and technology, its anchor tenants include Fortune 500 and leading growth companies such as Google, Netflix, Riot Games, Square, Uber and more. Hudson Pacific is publicly traded on the NYSE under the symbol HPP and listed as a component of the S&P MidCap 400 Index.