Hudson Pacific Properties extended its $1.1 billion CMBS loan tied to the 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 extension removes near-term maturity risk while preserving capital. The stated interest rate on the loan was left unchanged, and Hudson Pacific also entered into a derivative that swaps SOFR at 3.50% through maturity.
The Hollywood Media Portfolio 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. The portfolio also carries rights to build another 1.1 million square feet of office and production space.
Hudson Pacific owns a 51% interest in the joint venture and oversees day-to-day operations, leasing and development.
As part of the extension, the venture will set aside $20 million in a leasing reserve at closing. Excess cash flow from the portfolio will be swept into that reserve to cover ongoing capital needs for the rest of the loan term.
The company said reported interest expense will include fees and costs tied to the extension and the derivative. Today the company's shares have moved 0.34% to a price of $11.92. Check out the company's full 8-K submission here.
