Hudson Pacific Properties extended a $1.1 billion CMBS loan tied to its Hollywood media portfolio, pushing the maturity to Nov. 9, 2027 from the prior near-term deadline and doing so with no principal paydown at closing.
The company said the loan extension was executed with the stated interest rate unchanged. Hudson Pacific also entered into a derivative to swap SOFR at 3.50% through maturity.
The portfolio securing the loan spans 2.2 million square feet and includes three Hollywood studio lots — Sunset Gower Studios, Sunset Las Palmas Studios and Sunset Bronson Studios — plus five Class A office properties: Icon, Epic, Harlow, 6040 Sunset and Cue. It also carries rights to build another 1.1 million square feet of office and production space.
Hudson Pacific owns a 51% stake in the portfolio and oversees day-to-day operations, leasing and development.
As part of the extension, the joint venture will set aside $20 million for a leasing reserve at closing. Excess cash flow from the portfolio will be swept into that reserve for ongoing capital needs during the loan term.
The extension removes a near-term maturity risk from one of the company’s largest assets and gives Hudson Pacific more time to work on leasing across the portfolio. Following these announcements, the company's shares moved 4.33%, and are now trading at a price of $12.395. For more information, read the company's full 8-K submission here.
