Los Angeles, CA-based real estate investment trust (“REIT”) Hudson Pacific Properties, Inc. HPP and Canada Pension Plan Investment Board (“CPPIB”) have, in a joint venture (“JV”), acquired a Class-A office tower for around $180 million. Known as “Hill7”, the 285,680-square-foot tower located at 1099 Stewart Street in Denny Triangle neighborhood, Seattle is likely to complement the existing holding of the REIT in the region.
The acquisition of Hill7 is the first office property investment in the dynamic Seattle market. Currently, the 11-story office tower is 80.4% leased. HBO and Redfin are the anchor tenants. Hudson Pacific will retain 55% ownership interest, whereas the remaining 45% interest will be retained by CPPIB. In connection with the acquisition, the JV has closed a secured loan of $101 million with a term period of 10 years and fixed rate of 3.38% from a top lender.
Hudson Pacific Properties is focused on owning, operating and acquiring high-quality office properties and media and entertainment properties in select growth markets primarily in Northern and Southern California. This latest acquisition is in sync with its strategy of raising its investment in Seattle, which is one of the most vibrant office markets in the U.S. Further, the company also aims at continuing its relationship with CPPIB.
Hudson Pacific Properties currently carries a Zacks Rank #3 (Hold). Over the past one month period, its current quarter estimates have remained stable at 44 cents.
Some better-ranked stocks in the same space include Arbor Realty Trust Inc. ABR, Crown Castle International Corp. CCI and Seritage Growth Properties SRG, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
HUDSON PAC PPTY Price
HUDSON PAC PPTY Price | HUDSON PAC PPTY Quote
Current quarter estimates for Arbor Realty Trust and Crown Castle International remained stable at 16 cents and $1.13 per share, respectively over the last month.
For Seritage Growth Properties, current quarter estimates have moved up 7.5% over the past one month period to 57 cents.
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