Hudson Pacific Properties, Inc. (HPP): A bull case theory
This article argues a bull case for Hudson Pacific Properties (HPP), a commercial real estate investment trust focused on office and studio properties on the West Coast. The author suggests that despite current challenges in the office market and high interest rates, HPP is undervalued, citing its experienced management, high-quality assets, attractive valuations, and potential for a dividend hike. The analysis highlights HPP's strategic locations, environmental initiatives, and compares its valuation favorably against peers, forecasting significant upside potential.
Hudson Pacific Properties (NYSE:HPP) Sets New 52-Week Low - Here's What Happened
Hudson Pacific Properties (HPP) shares recently hit a new 52-week low of $9.76 before trading around $9.89, representing a 4.1% intraday drop. Analysts generally hold a "Hold" rating with an average price target of $16.31, although some have reduced targets and Weiss Ratings maintains a "Sell." Despite a slight EPS beat in its last quarterly earnings, the company remains unprofitable and trades below its 50- and 200-day moving averages.
Hudson Pacific sells Element LA for $231M, revises Q4 FFO outlook to $0.15–$0.25
Hudson Pacific Properties announced the sale of its Element LA campus for $231 million, generating net proceeds of $192 million which will be used for debt reduction. Following this sale, the company has revised its fourth-quarter FFO outlook to a range of $0.15 to $0.25 per diluted share. This strategic divestment impacts their financial projections for the end of the year.
Hudson Pacific Properties, Inc. (HPP): A Bull Case Theory
This article presents a bullish thesis for Hudson Pacific Properties (HPP), highlighting its undervaluation due to balance sheet constraints despite owning high-value assets. A significant $300 million investment by Cohen & Steers as part of a $690 million recapitalization is seen as validation, strengthening HPP's balance sheet and providing a roadmap to unlock intrinsic value. This investment signals confidence in management and positions HPP for a potential market repricing, offering upside for investors.
Hudson Pacific (NYSE: HPP) uses $231M Element LA deal to repay $206M CMBS debt
Hudson Pacific Properties, Inc. announced the sale of its Element LA office campus for $150 million, plus an $81 million lease termination payment, totaling $231 million in gross proceeds. The company utilized these funds to repay $206 million in CMBS debt associated with the property, with the remainder allocated for general corporate purposes. This strategic move strengthens Hudson Pacific's balance sheet and enhances liquidity for reinvestment into growth opportunities, particularly in the Bay Area and Seattle markets.
Hollywood’s Largest Landlord Is Showing Signs of Distress
Hackman Capital Partners, owner of the MBS Group and a major landlord of film and TV soundstages, is experiencing financial difficulties due to a global slump in production. MBS Group is in talks to restructure its debt and has cut approximately 100 jobs, while Michael Hackman has also stepped down from the MBS board. This signals significant distress for one of Hollywood's largest property owners.
City Looks to Decommission Public Art Work ‘Media in Motion’
Culver City is considering the decommissioning of a public art piece titled "Media in Motion" located at 10950 Washington Blvd. The artwork, which has been installed for 27 years, needs to be removed because the property owner, Hudson Pacific Properties, Inc., plans to demolish the existing building and construct a new mixed-used development. Due to its specific design, the artwork cannot be relocated, and a public meeting will be held on August 19, 2025, to discuss its deaccessioning.
AI boom fuels Hudson Pacific's best office leasing year since 2019 - San Francisco Business Times
Hudson Pacific Properties is experiencing its best office leasing year since 2019, driven by the artificial intelligence boom in San Francisco. The demand is significant, with at least 18 companies seeking over 100,000 square feet of space each, indicating a strong interest in major building anchors. This trend highlights a resurgence in the San Francisco office market, fueled by the growth of the AI industry.
Hudson Pacific posts $83M loss in Q2
Hudson Pacific Properties reported a deepened loss of $83 million in Q2, an increase from previous quarters, due to declining revenues from its office and studio sectors. The company's revenues fell to $190 million, down from $218 million year-over-year, impacted by decreased office occupancies and discounted asset sales. Despite the losses, CEO Victor Coleman highlighted recent leasing activity and expressed hope for recovery through artificial intelligence for office spaces and film/television tax credits for studios.
Blackstone and Hudson Pacific Receive Approval at Planning Committee to Develop World-Class Studio Facility in the UK
Blackstone and Hudson Pacific have received planning approval to develop Sunset Waltham Cross Studios, a major new studio facility in Broxbourne, Hertfordshire, UK. This 21-stage complex will be a global hub for film and television, with preliminary site work starting in late 2022 and potential delivery by the end of 2025. The project is expected to create over 4,800 jobs and contribute £300 million annually to the local economy, while also targeting high sustainability standards.
Developer Plans South L.A. Project
Brentwood-based Hudson Pacific Properties Inc. is poised to enter exclusive negotiations with the city of Los Angeles to redevelop 5.7 acres in Marlton Square, South Los Angeles. The developer plans to construct a two-building mixed-use center, including office space, a grocery store, a food incubator, and an urban farm. This project is part of Hudson Pacific's EquiBlue impact investing platform, focusing on under-resourced communities.
Project of the Year Finalist Best Office/Retail/Mixed-Use: One Westside
The article highlights One Westside as a Project of the Year Finalist for Best Office/Retail/Mixed-Use, detailing its transformation from an abandoned shopping mall into a modern office campus. It discusses the challenges faced during the renovation, including structural demolition, discrepancies with original drawings, and sloped floors, all while overcoming COVID-19 related obstacles. The project also emphasized sustainability and is expected to positively impact the community with Google's presence.
Hudson Pacific Acquires Quixote Studios for $360M
Hudson Pacific Properties has acquired Quixote Studios, a production company with 23 soundstages in Los Angeles, for $360 million. The deal, backed by Blackstone's 2020 investment in Hudson Pacific, aims to expand Hudson Pacific's studio capacity and capture more of the global production market. Quixote's founder, Mikel Elliott, will remain with the company after the acquisition.
$360M: Hudson Pacific Buys Studio
Hudson Pacific Properties Inc. has acquired West Hollywood-based Quixote Studios for $360 million, a move expected to be immediately financially beneficial. This acquisition enhances Hudson Pacific's core studio business by expanding its full-service offerings of sound stages and production services in key global markets, strengthening its capacity to meet demand in the streaming content era. Quixote founder Mikel Elliott will remain in a leadership position, contributing to the companies' shared goal of elevating the production experience.
Hudson Pacific buys Quixote Studios in $360-million deal
Hudson Pacific Properties has acquired Quixote Studios for $360 million, significantly expanding its soundstage business to meet growing demand. Quixote, founded in 1995, provides production services in multiple cities and operates studios in Los Angeles, serving clients like HBO and Walt Disney. This acquisition occurs amid an intensifying competition to provide soundstages and production facilities fueled by a content boom, with existing soundstages in Los Angeles County almost fully rented for years.
Hudson Pacific leases rest of Harlow building in Hollywood to inaugural tenant
Post-production house Company 3 has leased the entirety of Hudson Pacific's recently completed Harlow office building located on the Sunset Las Palmas lot in Hollywood. This marks Company 3 as the inaugural and sole tenant of the Harlow building. The move signifies a significant occupancy for Hudson Pacific's new development.
Hudson Pacific Buys Star Waggons, Zio Studio Services for $222 Million
Hudson Pacific Properties Inc. has acquired Star Waggons and Zio Studio Services for a combined $222 million, significantly expanding its production services offerings. These acquisitions will allow Hudson Pacific to capture a greater share of production services revenue at its Sunset Studios facilities and externally, enhancing its role within the content production ecosystem. The two companies, with a combined fleet of over 1,100 transportation assets, will operate as subsidiaries, with their current presidents continuing to lead operations.
Hudson Pacific Properties Acquires Lyle Waggoner’s Star Wagons And Zio Studio Services
Hudson Pacific Properties has acquired Star Waggons and Zio Studio Services for a combined $222 million, significantly expanding its production services. These acquisitions add over 1,100 luxury location trailers and specialized vehicles to Hudson Pacific's global studio platform. The move is expected to be immediately accretive to 2021 and long-term financial targets, enabling the company to capture a greater share of production services revenue.
Hudson Pacific's $20 Million Pledge to Increase Affordable Housing Supply and Support the Homeless
Hudson Pacific Properties Inc. has pledged $20 million over five years to address the homelessness crisis and increase affordable housing in its core West Coast markets, particularly in California. This multi-pronged approach includes impact investments in innovative models like SDS Capital Group's Supportive Housing Fund, which aims to build permanent supportive housing faster and more affordably, as well as philanthropic donations and employee volunteer efforts. The initiative is part of Hudson Pacific's broader Better Blueprint corporate responsibility platform and involves partnerships with local organizations like People Assisting the Homeless (PATH) and Hollywood 4WRD.
Sunset Studios plans to expand across the Pond
Blackstone and Hudson Pacific Properties are expanding their Sunset Studios portfolio by acquiring a 91-acre site located north of central London. This move aims to establish a new film, television, and digital production campus in the United Kingdom, following their success in Hollywood.
Stage is set in L.A. for its next studio
Hudson Pacific Properties Inc. and Blackstone are developing Sunset Glenoaks Studios, a new $190 million facility with seven soundstages in Sun Valley, Los Angeles, to meet the surging demand for film and TV production facilities. The project aims to expand their existing "Sunset Studios" brand, which will total 42 soundstages upon completion, and other companies are also investing in new studio developments across L.A. in response to the booming entertainment industry and streaming services.
Hudson Pacific Lands Office Tenant in Los Angeles’ Arts District
Califia Farms has leased 29,440 square feet of office space at The Maxwell in Los Angeles’ Arts District from Hudson Pacific Properties, relocating its headquarters. The 63,224-square-foot building, a former coffee production facility, underwent an adaptive reuse transformation in 2018. Hudson Pacific Properties continues to be active in the Greater Los Angeles area's recovering office market.
Company 3 Leases Large Space at Sunset Las Palmas Studios
Post-production company Company 3 has leased 70,285 square feet at Harlow, Hudson Pacific Properties Inc.’s new office development at Sunset Las Palmas Studios in Hollywood. This 11-year lease expands Company 3's existing relationship with Hudson Pacific, and highlights strong demand for their studio properties, which are now over 50% leased.
Hudson Pacific leases half of new Harlow office in Hollywood (PHOTOS)
Company 3 has leased 70,285 square feet at Hudson Pacific's new Harlow office in Hollywood, effectively doubling its real estate footprint in Los Angeles. This lease accounts for half of the recently completed Harlow office space on the Sunset Las Palmas lot. Company 3 already occupies Hudson Pacific’s 3401 Exposition property in Santa Monica.
Hudson Pacific Properties and Macerich to Fund Major Grant for Local Artists Impacted by COVID-19
Hudson Pacific Properties (NYSE: HPP) and Macerich (NYSE: MAC) are launching the Vibrant Cities Arts Grant, providing over $650,000 to Los Angeles artists impacted by COVID-19. Funds, derived from the One Westside project, will support individual artists and groups, with special consideration for female, LGBTQ+, and artists of color addressing social issues. The program aims to swiftly disperse grants of $5,000, $10,000, or $15,000, with applications opening January 4, 2021.
Seattle Trophy Office Tower to Change Ownership in $625M Deal
Hudson Pacific Properties and Canada Pension Plan Investment Board are acquiring the 668,000-square-foot 1918 8th Ave. building in Seattle for $625 million from investors advised by J.P. Morgan Asset Management. The LEED Platinum-certified property, 98 percent leased with Amazon as the anchor tenant, is expected to close by year-end. Hudson Pacific will hold a 55 percent stake and manage leasing and construction.
Hudson Pacific to pay $625M for Amazon-leased tower in Denny Triangle
Hudson Pacific Properties and its investment partner are in the process of acquiring 1918 Eighth Ave., an Amazon-leased tower in Denny Triangle, for $625 million. Amazon, which has leased approximately 460,000 square feet since 2010, has a lease extending through 2030 in the 36-story Blackfoot building. NBBJ designed the LEED Platinum-certified office tower.
Hudson Pacific, partner flex in Seattle with $625M acquisition of Amazon-leased tower
Hudson Pacific Properties and Canada Pension Plan Investment Board have acquired Amazon's Blackfoot building in Seattle for $625 million. This acquisition includes a 10-year lease renewal by Amazon for the 36-story tower.
Hudson Pacific, Blackstone Plan to Expand Historic Sunset Gower Studios
Hudson Pacific Properties Inc. and Blackstone Property Partners received approval to expand the historic Sunset Gower Studios in Hollywood. The expansion will add 480,000 square feet, including two soundstages, a high-rise office tower, and a low-rise building for support staff, transforming the site into a modern media campus. Construction is slated to begin in 2022, building on the success of prior collaborations between Hudson Pacific and Blackstone.
Inside Hudson Pacific and Blackstone’s field of streams
This article details Blackstone Group's acquisition of a 49 percent stake in Hudson Pacific Properties' $1.65 billion Hollywood real estate portfolio, focusing on soundstages and capitalizing on the streaming industry boom. It explores the strategic motivations for both companies, the financial implications, and the future prospects of their partnership, including potential further acquisitions in the competitive Los Angeles real estate market. The deal highlights the growing demand for soundstage space fueled by content creation for streaming services like Netflix.
Blackstone To Buy 49% Stake In Hudson Pacific's Three Hollywood Studios And Office Properties
Blackstone Property Partners will acquire a 49% stake in Hudson Pacific Properties Inc.'s three Hollywood studios and five Class A office properties for a gross portfolio valuation of $1.65 billion. Hudson Pacific will retain a 51% ownership and manage operations. The transaction, expected to close in Q3, includes the Sunset Bronson, Sunset Gower, and Sunset Las Palmas Studios, along with several Class A office buildings.
Hudson Pacific's Creative Office Space Concept for Netflix
This article features an interview with Victor Coleman, Chairman and CEO of Hudson Pacific Properties, Inc., discussing the REIT's strategy of providing creative office spaces for tech and media companies, including Netflix and Google. Coleman highlights Hudson Pacific's focus on adaptive reuse and its growth as the largest independent studio space owner with a strong presence on the West Coast. He also shares insights into the company's culture, ESG initiatives, and personal career philosophy.
Tech titans fuel a scramble to build large-scale offices
Tech giants like Google, Amazon, and Netflix are driving a massive scramble for office space in Los Angeles, leading to billions of dollars in new construction and radical redevelopments. These "content creators" prefer large-scale, campus-like facilities with unique amenities over traditional high-rise offices, focusing their hubs in areas like Hollywood, Culver City, and Playa Vista. This trend is sparking an economic boom and attracting a multiplier effect of smaller service providers looking to be near these major players.
SETTING THE STAGE
The article discusses the resurgence of film and television production in Los Angeles, driven by streaming services and tax incentives, which has led to a boom for soundstage owners. It highlights that studio spaces are near 100% occupancy, making it a lucrative but operationally intensive business for property owners. Key players like Hudson Pacific Properties, Occidental Entertainment Group, and Hackman Capital are expanding their soundstage portfolios, with long-term leases becoming more common due to high demand.
VICTOR COLEMAN
Victor Coleman, Chief Executive, Founder, and Chairman of Hudson Pacific Properties, is noted for his company's high-profile tech and media projects, including Netflix's lease at the Epic tower and Google's future Los Angeles home at the redeveloped Westside Pavilion. His background includes co-founding Arden Realty Inc. and serving on the boards for the Ziman Center for Real Estate at UCLA and the Los Angeles Sports & Entertainment Commission. He is also an investor in the National Hockey League’s Las Vegas Golden Knights.
From Chaplin to Netflix — how one L..A. real estate investment firm has transformed Hollywood
This article highlights how Hudson Pacific Properties, through its Sunset Studios, became the largest independent owner of studio space in the U.S. The firm has played a significant role in transforming Hollywood's real estate landscape, preserving the legacy of studios while adapting to modern needs.
Google Signs Lease For Once Bustling Westside Pavilion Shopping Center
Google has signed a 14-year lease for the entire 584,000-square-foot redevelopment of the former Westside Pavilion shopping mall in Los Angeles, transforming it into a "creative office campus" called One Westside. The lease is set to begin in 2022 after construction completion, marking Google's continued expansion following other significant real estate investments in New York City. This move highlights the growing tech and media industries in Los Angeles and the repurposing of traditional retail spaces for modern office needs.
Google Unveils Office Makeover for West LA Mall
Google has leased the entire former Westside Pavilion mall in Los Angeles, which developers Hudson Pacific Properties and Macerich will redevelop into a 584,000-square-foot office campus named One Westside. The tech giant's 14-year lease begins in 2022, following the completion of construction and tenant improvements for the creative office space. This project marks a significant conversion of a shopping mall into a modern office campus, aiming for LEED Silver certification and featuring extensive amenities.
New owners buy iconic San Francisco Ferry Building for $291 million in cash
The iconic San Francisco Ferry Building has been sold to Los Angeles-based Hudson Pacific Properties and European-based Allianz Real Estate for $291 million in cash. Hudson will own 55% of the property and Allianz 45%, with the deal expected to close this week. The new owners plan to enhance the retail space and leverage expiring leases to increase rents and cash flow.
Netflix to Move into All 13 Stories at Hudson’s Epic in Hollywood
Netflix Inc. has committed to an 11-year lease for the entire 13-story Epic office building in Hollywood, owned by Hudson Pacific Properties. This 328,000-square-foot building is currently under construction and is expected to be delivered in the first quarter of 2020. Additionally, Netflix signed a five-year extension for its existing leases at Cue and Icon, also located on Hudson Pacific's Sunset Bronson Studios lot.
Sneak peek: Hudson Pacific gives former Cisco campus in Milpitas big makeover to draw top-tier tenants
Hudson Pacific Properties is nearing completion on a massive renovation of former Cisco Systems buildings in Milpitas. The makeover is intended to attract top-tier companies in Silicon Valley. This development signifies a significant repositioning of the campus for new tenants.
Westside Pavilion to be Remodeled Into Offices
The Westside Pavilion mall in Los Angeles is being redeveloped into 500,000 square feet of "creative office space" by Macerich Inc. and Hudson Pacific Properties Inc. This transformation is driven by a lack of traditional anchors and strong demand for office space on Los Angeles' Westside, reflecting a broader trend of converting retail properties into mixed-use destinations. The project, estimated to cost between $425 million and $475 million, is scheduled for completion by mid-2021, with 100,000 square feet remaining as entertainment/retail space housing Landmark Theatres.
JV to Transform LA Mall into Office Property
Hudson Pacific Properties and Macerich have formed a joint venture to redevelop 500,000 square feet of the Westside Pavilion mall in Los Angeles into creative office space, while retaining 100,000 square feet for existing entertainment retail. The project is estimated to cost between $425 million and $475 million and is scheduled for completion by mid-2021, with Hudson Pacific serving as the managing member. This transformation aims to meet the strong demand for creative office space on the west side of Los Angeles.
Westside Pavilion to be Repurposed as Office Space
Hudson Pacific Properties, Inc. and Macerich are forming a joint venture to redevelop the Westside Pavilion shopping mall into approximately 500,000 square feet of office space while retaining 100,000 square feet of retail. The project, budgeted between $425 million and $475 million, aims to transform the struggling mall by mid-2021. This redevelopment reflects a broader trend of repurposing traditional retail spaces amidst changing consumer habits.
Snap Inc. snaps up San Francisco office in SoMa
Snap Inc., the company behind camera apps for phones, is expanding its presence in San Francisco by leasing new office space at 875 Howard St. in SoMa. Hudson Pacific Properties owns the 284,000 square-foot building. This move signifies Snap Inc.'s continued growth in the Bay Area.
Office/Retail/Mixed Use Best Project: ICON at Sunset Bronson Studios | 2017-10-03 | ENR
The ICON at Sunset Bronson Studios project, an office high-rise fully leased by Netflix, won the Best Project award in the Office/Retail/Mixed Use category in ENR California's 2017 Best Projects. This article details the building's innovative design, including staggered boxes with multiple outdoor terraces and a unique enclosure system, as well as the challenges overcome during its construction on an active studio lot. It highlights the project's features such as digital production facilities, a 13-story atrium, and the preservation work on a landmark radio tower and a 1920s-era mansion.
Netflix Expands in Hollywood
Netflix has expanded its presence in Hollywood by leasing an additional 43,000 square feet at Sunset Bronson Studios from Hudson Pacific Properties Inc., adding to their existing 99,000 square feet. This deal demonstrates the high demand for state-of-the-art production facilities in Hollywood and highlights Hudson Pacific's success in securing long-term leases with top content creators like Netflix. The expansion is part of a broader revitalization of Hollywood as an entertainment production capital, driven by significant investments from Hudson Pacific and the convergence of tech and entertainment.
Ramos Rejoins Greystone as Managing Director
Ana Ramos has rejoined Greystone as a Managing Director and Regional Head of West Coast Small Loan Production, bringing 20 years of commercial real estate lending experience. This article also details new hires at Colliers International South Florida, with Russell Bornstein and Michael Wilson joining as commercial real estate brokers specializing in retail and office respectively. Additionally, Hudson Pacific Properties promoted Derric DuBourdieu to Senior Vice President of Leasing, with Kenneth Young taking over Silicon Valley and San Francisco Bay Peninsula leasing.
Google gobbles up another chunk of San Francisco office space
Google (GOOG) is expanding its San Francisco presence by leasing a significant amount of office space in Hudson Pacific's Rincon Center II. This move further solidifies Google's position as one of the largest tenants in the city. The transaction involves Hudson Pacific Properties, which owns the two-building Rincon Center.
REITs Reshaping Communities: Hudson Pacific
This article details how Hudson Pacific Properties (NYSE: HPP) strategically acquired and redeveloped historic Hollywood studios, Sunset Bronson and Sunset Gower, into modern media campuses to meet the growing demand for production space, particularly from streaming services like Netflix. The initiative highlights Hollywood's resurgence as a media production hub and the REIT's focus on creating adaptable, technologically advanced facilities that cater to the evolving needs of the entertainment industry. This strategy has led to significant revenue growth and increased property value for Hudson Pacific.
