Hudson Pacific Secures $475M CMBS for California Office Portfolio
Hudson Pacific Properties has secured $475 million in commercial mortgage-backed securities (CMBS) financing for an office portfolio mostly concentrated in California.
The deal covers six assets: Element LA, 450 Alaskan, 5th & Bell, 1740 Technology, 275 Brannan, and 11601 Wilshire. The only West Coast properties not located in California are 450 Alaskan and 5th & Bell, which are both based in Seattle, Washington.
Already, Hudson said that it has 100 percent paid back a $168 million loan that was held by Element LA. Additionally, the proceeds have repaid the remaining amounts on its credit facility and used the rest for other general corporate purposes.
The CMBS loan carries a two-year term with three 12-month extension options to make it possible for five years. It comes with a 376 basis point interest rate through a Secured Overnight Financing Rate for a one-month term.
The latest CMBS deal adds to Hudson's balance sheet. The Los Angeles-based firm now has $815 million in liquidity, which breaks down to $63 million in cash and $752 million on its credit facility. The balance sheet includes the proceeds from the sale of Foothill Research Center which was completed last month. Plus, Hudson has another $133 million in capital available under the Sunset Pier 94 Studios construction loan, a TV and film campus in Manhattan.
For the latest CMBS loan, Goldman Sachs served as the lead manager and Bookrunner. Co-managers and joint bookrunners on the deal included Morgan Stanley and Wells Fargo Securities.
“Thanks to the exceptional quality of our properties, tenants and markets, and the strong support of our banking team, we have successfully closed on this significant CMBS financing with favorable terms," Harout Diramerian, Hudson's chief financial officer said in a statement.
“Along with recent and potential asset sales, we continue to increase liquidity and balance sheet flexibility, putting us at a positive inflection point in our overall strategy to address our remaining maturities in the coming years.”
Source: GlobeSt/ALM