Hudson Pacific Makes $231M Selling West LA Offices To Riot Games
Riot Games has purchased the Olympic Boulevard offices it has occupied for a decade, Bisnow has confirmed.
Riot Games paid $150M to its former landlord, Hudson Pacific Properties, and another $81M to terminate its lease at the five-building campus Element LA. The Sawtelle offices have served as Riot Games' global headquarters since 2015.
"As we look forward to creating more worlds and experiences, this campus will continue to be the place where Rioters push the boundaries of game development in service of delivering incredible games to players around the world," the video game developer and publisher said in an emailed statement to Bisnow.
The sale was subject to Measure ULA, the real estate transfer tax on transactions over $5M, and those fees were paid by Riot, according to Hudson Pacific.
Hudson Pacific used the $231M in gross proceeds from the sale to repay $206M of CMBS debt on the property. The remainder of the proceeds would be "available for general corporate purposes," according to a release.
The REIT announced the transaction on Friday but did not disclose the buyer. Also on Friday, Hudson Pacific released an updated outlook for its anticipated funds from operations in the fourth quarter.
The outlook increased to a range of 15 cents to 25 cents per diluted share, up from the 1 cent to 5 cents per diluted share it anticipated for the period when it shared its quarterly earnings in November.
The REIT completed a 7-1 reverse stock split on Dec. 1, which is reflected in the updated projections.
In 2021, Riot signed a 10-year-lease for all 200K SF of office space in Sawtelle's West Edge, a project from Hines, Philena Properties and USAA Real Estate.
