Hudson Pacific Properties, Inc. (the “Company”) (NYSE: HPP) today announced it has entered into purchase agreements to acquire 901 Market Street in San Francisco and the Olympic Bundy Media Campus in West Los Angeles. Both acquisitions are subject to customary closing conditions.
The Company has agreed to purchase the 901 Market Street property for $90 million. 901 Market is an approximately 211,000 square foot historic landmark building consisting of approximately 148,000 square feet of office space and 63,000 square feet of ground floor and lower level retail space. Located at the crossroads of the Union Square and South of Market (SOMA) submarkets, adjacent to the Westfield San Francisco Shopping Centre and Union Square BART entrance, 901 Market enjoys prominent visibility and access to San Francisco’s burgeoning technology and social media-oriented tenants and Union Square’s retail visitors. 901 Market is approximately 62% leased to a diverse tenant base, affording the Company the opportunity to significantly enhance future income by capitalizing on the favorable market conditions throughout San Francisco. This acquisition is expected to close on or before June 1, 2012.
In a separate transaction, the Company has also agreed to purchase the Olympic Bundy Media Campus located at 1901, 1925, and 1933 South Bundy Drive and 12333 West Olympic Boulevard in Los Angeles, for $89 million. Comprised of 11.55 acres, with four existing buildings totaling approximately 233,600 square feet, the Olympic Bundy Media Campus represents an exciting opportunity to renovate and reposition a large-scale office location into a modern creative office campus. Approximately 84,200 square feet of the project has been renovated and is immediately available for office tenancy, of which 64% is currently leased through May 2013 to the Rubicon Project, an online advertising technology company. Approximately 149,400 square feet of the project is planned for renovation to capitalize on West Los Angeles’ growing technology and media tenant demand. All of the buildings feature high, wood bowtruss ceilings, sawtooth skylights, and industrial windows, features appealing to today’s creative office users. The site also benefits from zoning which could potentially support up to an additional 500,000 square feet of future improvements. This acquisition is expected to close on or before September 1, 2012.