- Hudson Pacific closed a $475M CMBS loan for a six-property portfolio on the West Coast, including LA’s Element LA and 11601 Wilshire Blvd.
- The funding allows the REIT to fully repay the $168M loan on Element LA and reduce its credit facility obligations.
- With this financing and recent asset sales, Hudson Pacific has about $815M in liquidity as it works to address nearly $600M in debt maturing this year.
Refinancing in Motion
Hudson Pacific Properties announced it has secured $475M in CMBS financing backed by a six-property office portfolio on the West Coast. Notably, the LA-based Element LA campus—home to gaming giant Riot Games—was encumbered by a $168M loan that will be paid off using the new financing, according to Bisnow.
Who’s Behind the Deal
Goldman Sachs led the financing effort, with Morgan Stanley and Wells Fargo Securities serving as co-lead managers. The proceeds will also be used to pay down Hudson Pacific’s outstanding credit facility.
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Why It Matters
The infusion of capital is part of Hudson Pacific’s broader strategy to boost liquidity and manage debt obligations in a tough office and studio real estate market. CFO Harout Diramerian called it “a positive inflection point” as the REIT works to address $599.9M in upcoming secured and unsecured debt maturities in 2025.
Liquidity Update
The $475M financing deal, coupled with the recent sale of the Foothill Research Center in Palo Alto earlier in March, gives Hudson Pacific approximately $815M in liquidity between its revolving credit facility and cash reserves.
A Shifting Portfolio
Hudson Pacific is continuing to offload assets to streamline operations and improve its balance sheet. The REIT owns a portfolio of high-profile office and studio properties, including two buildings on Sunset Boulevard leased to Netflix.
What’s Next
As the office and studio sectors continue to face headwinds, Hudson Pacific’s latest refinancing move suggests it is working proactively to shore up its financials ahead of looming debt maturities. Expect more asset sales or strategic financing activity in the months ahead.
