Hudson Pacific Properties Completes Acquisition of Merrill Place Property in Seattle
LOS ANGELES--(BUSINESS WIRE)--Hudson Pacific Properties, Inc. (the “Company”) (NYSE: HPP) has completed the $57.7 million acquisition of an office and retail property known as “Merrill Place” located in downtown Seattle’s Pioneer Square submarket, directly adjacent to the Company’s First & King property. The Company had previously announced it had entered into a purchase agreement to acquire the property last month.
“This asset is a great complement to our Seattle portfolio and represents a tremendous opportunity to leverage our operational, leasing and development expertise to create value for our shareholders.”
Merrill Place consists of four interconnected brick and beam buildings spanning an entire city block and comprising approximately 179,000 square feet of office and ground floor retail, along with a 147-stall standalone parking structure. The property is currently 93% leased with approximately 52% of the leases scheduled to expire over the next four years. The Company intends to implement an extensive repositioning of the property, including lobby and common area upgrades, new tenant amenities, an elevator modernization, and mechanical and electrical upgrades. Additionally, current zoning for the property allows for the potential development of a new office building fronting the soon to be improved Alaskan Way waterfront. The Company plans to commence the entitlement process immediately to allow for delivery of the new office building by 2017.
“We are very pleased to close the acquisition of Merrill Place,” said Victor J. Coleman, Chairman and Chief Executive Officer of Hudson Pacific Properties, Inc. “This asset is a great complement to our Seattle portfolio and represents a tremendous opportunity to leverage our operational, leasing and development expertise to create value for our shareholders.”
About Hudson Pacific Properties
Hudson Pacific Properties, Inc. is a full-service, vertically integrated real estate company focused on owning, operating and acquiring high-quality office properties and state-of-the-art media and entertainment properties in select growth markets primarily in the Pacific Northwest and Northern and Southern California. The Company’s strategic investment program targets high barrier-to-entry, in-fill locations with favorable, long-term supply-demand characteristics in select target markets, including Los Angeles, Orange County, San Diego, San Francisco and Seattle. The Company’s portfolio currently consists of approximately 6.2 million square feet, not including undeveloped land that the Company believes can support an additional 1.6 million square feet. The Company has elected to be taxed as a real estate investment trust, or REIT, for federal income tax purposes. Hudson Pacific Properties is a component of the Russell 2000® and the Russell 3000® indices. For additional information, please visit www.hudsonpacificproperties.com.
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