Recent Buys Double Hudson’s Denny Triangle Portfolio

Hudson Pacific Properties Inc. recently purchased a leasehold interest in a 197,000-square-foot office building in Seattle for $119 million or $602 per square foot (before closing costs and prorations). The property’s office component, which comprises approximately 192,000 square feet, is fully leased to Amazon. The remaining term on the ground lease is 50 years.

Known as 5th & Bell, the property is located in Seattle’s Belltown neighborhood at the intersection of South Lake Union and Denny Triangle. The six-story LEED Gold-certified property features large floorplates and many onsite amenities.

With the acquisition of 5th & Bell, Hudson Pacific’s class-A portfolio in the Denny Triangle submarket has grown to nearly 2 million square feet. In aggregate, Hudson Pacific’s Greater Seattle portfolio now totals nearly 3 million square feet.

“With the purchase of 5th & Bell and 1918 Eighth, we have nearly doubled our portfolio of premier quality long-term credit tenant-anchored office assets in the dynamic Denny Triangle submarket and we have done so through transactions that are immediately accretive to the company,” said Victor Coleman, chairman and CEO of Hudson Pacific. “Our portfolio uniquely positions us to preserve and create value for our shareholders in Seattle, which remains one of the strongest office markets in the country.”

Hudson Pacific funded the acquisition with a combination of proceeds from its recently closed preferred stock offering and a $75 million draw on its revolving credit facility.