Hudson Pacific Properties Sells 4 California Offices For $255M

2180 Sand Hill In Menlo Park

Hudson Pacific Properties has entered into contracts to sell four of its office properties in Northern and Southern California. The pending sales would produce aggregate gross proceeds of $254.8M before credits, prorations and closing costs.

The properties are 2180 Sand Hill in Menlo Park, Embarcadero Place in Palo Alto, Peninsula Office Park in San Mateo and 9300 Wilshire in Beverly Hills. Hudson Pacific entered into separate agreements for each of the properties. The transactions are all expected to close by the end of January.

“Demand for high-quality office properties in the San Francisco-Bay Area’s Peninsula and Silicon Valley and the West Los Angeles markets remains strong,” Hudson Pacific Properties CEO and Chairman Victor Coleman said in a statement.

The 46K SF property at 2180 Sand Hill in Menlo Park is selling for $82.5M, which is 39% higher than Hudson Pacific’s original purchase price. Embarcadero Place, a 197K SF office campus spread across four two-story buildings, will sell for $136M, 24% above the original purchase price. The 63K SF Peninsula Office Park will fetch about $22.5M, 2% above the original acquisition price, and the 61K SF six-story office at 9300 Wilshire will sell for $13.8M.

The sale of these four noncore properties will provide additional capital for new, value-add investments, Coleman said. Hudson Pacific expects to designate proceeds from these dispositions to purchase one or more to-be-identified assets in a 1031 exchange.

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