Hudson Pacific Properties Sells Burlingame Office Property For $90 Million

Hudson Pacific Properties, Inc. (NYSE: HPP) today announced the sale of its Bay Park Plaza office property in Burlingame, California to Asian private equity firm H&Q Asia Pacific for $90.0 million before certain credits, prorations and closing costs. The sale was an all-cash transaction.

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Bay Park Plaza - 555 Airport Blvd. (Photo: Business Wire)

Hudson Pacific acquired the 260,183-square-foot property as part the San Francisco Peninsula and Silicon Valley office portfolio purchased earlier this year from Blackstone. Hudson Pacific used proceeds from the transaction to pay-down a portion of its $550 million two-year term facility.

“By selling Bay Park Plaza, we’re disposing of a non-strategic asset at a premium to our original purchase price allocation as part of the Blackstone portfolio,” said Victor Coleman, Chairman and CEO of Hudson Pacific Properties. “The transaction highlights our ability to generate additional value from these newly acquired properties, and is another sign of the Bay Area economy’s strength.”

Bay Park Plaza consists of two Class A office buildings at 555 Airport Boulevard and 577 Airport Boulevard. The 13-acre waterfront site is two miles from the San Francisco International Airport. Virgin America occupies the majority of 555 Airport Boulevard, which serves as its corporate headquarters.

Eastdil Secured represented Hudson Pacific and Alain Pinel Realtors represented H&Q Asia Pacific in the transaction.

About Hudson Pacific Properties

Hudson Pacific Properties is a vertically integrated real estate company focused on acquiring, repositioning, developing and operating high-quality office and state-of-the-art media and entertainment properties in select West Coast markets. Hudson invests across the risk-return spectrum, favoring opportunities where it can employ leasing, capital investment and management expertise to create additional value. Founded in 2006 as Hudson Capital, the company went public in 2010, electing to be taxed as a real estate investment trust. Through the years, Hudson has strategically assembled a portfolio totaling approximately 17.3 million square feet, including land for development, in high-growth, high-barrier-to-entry submarkets throughout Northern and Southern California and the Pacific Northwest. The company is a leading provider of design-forward, next-generation workspaces for a variety of tenants, with a focus on Fortune 500 and industry-leading growth companies, many in the technology, media and entertainment sectors. As a long-term owner, Hudson prioritizes tenant satisfaction and retention, providing highly customized build-outs and working proactively to accommodate tenants’ growth. Hudson trades as a component of the Russell 2000® and the Russell 3000® indices. For more information visit hudsonpacificproperties.com.

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