Hudson Pacific Properties, Inc. has sold Element LA, a 284,000-square-foot office campus located in West Los Angeles. The REIT sold the property for $150 million and received a separate $81-million payment for terminating the existing lease.
CoStar Group identified the buyer as Riot Games, the campus’ longtime tenant. Hudson Pacific used proceeds from the sale of the property and the termination of the lease, totaling $231 million, to repay $206 million of CMBS debt associated with the property.
Hudson Pacific acquired the various office and warehouse assets for $101 million more than a decade ago transforming, redeveloping and leasing up the property as a creative office campus.
“This strategic capital recycling further strengthens our balance sheet through additional debt reduction while enhancing our liquidity to reinvest into growth opportunities within our existing portfolio, especially throughout the Bay Area and Seattle, where we’re seeing the strongest leasing momentum,” said Victor Coleman, CEO and chairman of Hudson Pacific.
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