Hudson Pacific Properties Inc. entered into purchase agreements to acquire 901 Market Street in San Francisco and the Olympic Bundy Media Campus in West Los Angeles for a combine $179 million. Both acquisitions are subject to customary closing conditions.
The company has agreed to purchase the 901 Market Street property for $90 million. 901 Market is an approximately 211,000-sq.-ft. historic landmark building consisting of approximately 148,000 sq. ft. of office space and 63,000 sq. ft. of ground floor and lower level retail space.
The project is located at the crossroads of the Union Square and South of Market (SOMA) submarkets, adjacent to the Westfield San Francisco Shopping Centre and Union Square BART entrance. 901 Market is approximately 62 percent leased. Hudson Pacific plans to pursue the opportunity to significantly enhance future income by capitalizing on the favorable market conditions throughout San Francisco. This acquisition is expected to close on or before June 1, 2012.
In a separate transaction, the company has also agreed to purchase the Olympic Bundy Media Campus located at 1901, 1925, and 1933 South Bundy Drive and 12333 West Olympic Boulevard in Los Angeles, for $89 million.
Comprised of 11.55 acres, with four existing buildings totaling approximately 233,600 sq. ft., the Olympic Bundy Media Campus represents an opportunity to renovate and reposition an office location into a modern creative office campus. Approximately 84,200 sq. ft. of the project has been renovated and is immediately available for office tenancy, of which 64 percent is currently leased through May 2013 to the Rubicon Project, an online advertising technology company.
Approximately 149,400 sq. ft. of the project is planned for renovation to capitalize on West Los Angeles’ growing technology and media tenant demand. All of the buildings feature high, wood bowtruss ceilings, sawtooth skylights, and industrial windows, features appealing to today’s creative office users. The site also benefits from zoning which could potentially support up to an additional 500,000 sq. ft. of future improvements. This acquisition is expected to close on or before September 1, 2012.
Hudson did not identify the sellers of either asset.
“We are very pleased to announce agreements to purchase these compelling additions to our growing portfolio of office properties,” Hudson Chairman and CEO Victor J. Coleman said in a statement. “Our primary growth strategy has been to increase the Company’s presence in markets with a diverse base of office tenants, with an emphasis on media, entertainment and technology tenancy. These highly desirable assets in dynamic submarkets of San Francisco and West Los Angeles deliver on this objective. These acquisitions present an opportunity to continue to enhance shareholder value by identifying assets in strong markets where our experience can create value.”