In order to leverage its portfolio repositioning and leasing
Hudson Pacific Properties, Inc.
), a real estate investment trust (REIT), recently announced the
completion of the acquisition of a property -- Olympic-Bundy Media
Campus -- situated in West Los Angeles. The company has acquired
the property for $89.0 million from Stonebridge Holdings Inc.
Positioned at the corner of 1901, 1925 and 1933 South Bundy
Drive and 12333 West Olympic Boulevard, Olympic-Bundy Media Campus
comprises 11.55 acres along with four existing buildings
which span a total of approximately 233,600 square feet. Of the
total building space, around 84,200 square feet is available for
office tenancy. The remaining space is scheduled to be refurbished
to construct high-class office space.
The available office space is currently 64% leased to The
Rubicon Project, all the way through to May 2013. The renovation
activity on the remaining 149,400 square feet of space is intended
to make the most of rising demand of technology, entertainment and
media tenants in the West Los Angeles Market. The activity is
expected to end by early 2014.
The West Los Angeles office market comprises around 56 million
square feet, with major concentration in the area focused in the
Los Angeles Basin. The market already boasts a cluster of high-end
firms related to the sectors which cater to entertainment, digital
media, software and finance in the midst of some of the most
Some of the major corporations - such as
Activision Blizzard, Inc.
Electronic Arts Inc.
) - have a strong presence in the market. The demand for office
space in this market has been generally strong since 1985 with an
average of 710,000 square feet annually which represents 2.4%
annual growth in occupied space.
Hudson Pacific is focused on ownership, operation and acquisition
of high-quality office properties and state-of-the-art media and
entertainment properties primarily in North and South California.
In keeping with this, the company mostly targets high
barrier-to-entry, in-fill locations with favorable, long-term
supply-demand characteristics in markets such as Los Angeles,
Orange County, San Diego and San Francisco.
As of June 30, 2012, Hudson Pacific's portfolio consists of
property spanning approximately 5.0 million square feet of space,
which comprises total office space of around 3.8 million square
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Hudson Pacific currently carries a Zacks #3 Rank, which translates
into a short-term Hold rating. We also have a long-term Neutral
recommendation on the stock.