Rare wins for Victor Coleman's Hudson Pacific Properties

"Now for the Olympic Boulevard deal Hudson Pacific sold a 248,000 square foot, five-building office campus at 12333 West Olympic Boulevard for $150 million and got an extra $81 million payment for the termination of Riot Games' existing lease. The video-game developer picked up transfer taxes, which came to more than $8 million under the City of L.A.'s Measure ULA rate of 5.5 percent for commercial deals over $10.6 million."

"The total take, in any case, came to $231 million, giving Hudson Pacific cushion on the $206 million debt it was carrying. The firm increased its funds from operations outlook for the fourth quarter to a range of $0.15 to $0.25 per diluted share compared to $0.01 to $0.05, partly on the news. The deal at $150 million comes out to about $605 per square foot, but with the bonus payment on the lease cancellation it comes out to $931 per square foot."

"made two early December announcements: Jon Bortz became a board member, and the company sold a Los Angeles office campus to tenant Riot Games at a price that permits it to repay the commercial mortgage-backed securities debt connected to the real estate. Bortz, chairman and chief executive of Pebblebrook Hotel Trust, replaced Jonathan Glaser on the board. Bortz saw total compensation of $7.4 million last year compared to Coleman's take of about $25 million."

Hudson Pacific sold a 248,000-square-foot, five-building office campus at 12333 West Olympic Boulevard to tenant Riot Games for $150 million plus an $81 million lease-termination payment. Riot Games paid transfer taxes exceeding $8 million under Los Angeles Measure ULA, bringing total proceeds to $231 million. The cash allowed repayment of $206 million of CMBS debt and supported an increase in fourth-quarter funds from operations guidance to $0.15–$0.25 per diluted share from $0.01–$0.05. The transaction priced at about $605 per square foot, or $931 per square foot including the lease bonus. Jon Bortz joined the board and will receive modest cash retainers.

Read at therealdeal.com