Hudson Pacific Offloads Vacant San Jose Office for $75.5M, Pays Down Revolver
HPP has more than doubled off its 52-week low of $5.26.
Summary
HPP closed the sale of Skyport Plaza, a 419,000-square-foot North San Jose office property, for $75.5 million before prorations and closing costs. It also sold a real estate asset tied to the winddown of certain Quixote operations. All net proceeds go to the unsecured revolver, cutting the outstanding balance to $30.0 million. The asset was largely vacant and would have needed heavy capital to lease up, so this is a clean exit that adds liquidity rather than a fire sale of a stabilized building. CEO Victor Coleman says the company has now closed five sales this year for nearly $190 million in gross proceeds. The cash build matters given the recent tender for up to $200 million of 2027 and 2028 notes drew $537.9 million in tenders, 2.7x the target, and the $1.1 billion Hollywood Media Portfolio CMBS loan was extended to November 2027 with no principal paydown.
At the time of this announcement, HPP was trading at $11.17 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $619.7M. The 52-week trading range was $5.26 to $19.46. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: BusinessWire.