Hudson Pacific Properties sold a two-building campus totaling 284K SF in San Francisco’s SoMa neighborhood to raise cash.

Seven Equity Group of New York City paid $65.5M, or $234 per SF, for the buildings, The Real Deal reported. HPP acquired the buildings in 2007 from the Reliant Group for $46M, or $160 per SF.

The 188K SF, six-story office building at 875 Howard St. was approximately 36% occupied at closing, with the primary tenant’s lease due to expire next year, HPP said in a press release. The other property, a 96K SF retail building at 899 Howard St., was completely vacant. HPP secured entitlements that will allow a future owner to develop two floors of the building for office use.

“The sale of 875 and 899 Howard reflects our disciplined approach to recycling capital out of non-core assets,” HPP Chairman and CEO Victor Coleman said in the release. “Our team's deep understanding of San Francisco's growing office demand guided the repositioning of 899 Howard, and the sale eliminates significant capital and re-leasing risk while enhancing our financial flexibility.”

Combined with the sale of 2001 Gateway Place, a seven-story, Class-A office building totaling 161K SF in north San Jose, HPP has sold three Bay Area assets for $90.5M in the third quarter of 2026.

“We will continue executing our disposition program and driving lease-up across our portfolio,” Coleman said.

The company has struggled after purchasing Quixote Studios in 2022. The filmmaking business slumped around the same time and has continued to operate at a below-average pace, leaving studio space across Southern California empty. With both the studio and office markets resetting, HPP has dealt with low occupancy and faces maturing loans.

In April, HPP announced that it would close its operations in New Mexico and Georgia, shedding leases it took on in the Quixote acquisition.

Seven Equity, meanwhile, continues an extended buying spree across San Francisco. In early September, it purchased a five-story, 1907-built building at 818 Mission St., as well as an adjacent six-story property at 814 Mission that formerly housed the San Francisco Evening Bulletin. The office and ground-floor retail buildings span 101K SF and were purchased for $15.5M. Former San Francisco Centre owner Westfield acquired the assets nearly two decades ago for $42M. 

In July, Seven Equity Group acquired the former WeWork office building at 25 Taylor St. out of receivership for $6.75M, the San Francisco Business Times reported. 

San Francisco’s office market continues its extended recovery, though demand remains focused on higher-quality office buildings, Kidder Matthews reported. Leases at Class-A office properties accounted for 55% of activity and 66% of total net absorption in Q2.

Overall vacancy stood at 27.2% at the end of Q2, down from a high of 32% in 2024. Sublease vacancy, meanwhile, declined to 14.3%, a sharp reduction from its peak of 44% in 2020.