Back to top

Analyst Blog

Zacks Equity Research

Hudson Pacific Raising Capital to Fund Buyout


 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at or call 800-767-3771 ext.  9339.

Hudson Pacific Properties, Inc. (HPP - Snapshot Report) is raising capital to fund its recently announced purchase deal of Seattle’s Merrill Place property. The company, in particular, has made a public offering of 8.25 million shares at $21.50 per share and granted the underwriters a 30-day option to buy up to an additional 1.24 million shares. The offering is expected to close on Jan 28, 2014.

Hudson Pacific projects to reap $170.3 million in net proceeds ($195.8 million if the underwriters exercise their option completely). With the amount generated, the company plans to finance the buyout of Merrill Place, use it for its development and redevelopment moves, other acquisitions as well as for meeting general corporate needs. Till it undertakes these moves, the company plans to use it for lowering its debt under its senior unsecured revolving credit facility.

Notably, Hudson Pacific recently penned a deal to acquire the Merrill Place property in downtown Seattle’s Pioneer Square submarket. It is an office and retail property that would be purchased from a joint venture for approximately $57.7 million.  

The acquisition is slated to complete in Feb 2014, subject to customary closing conditions. This property comprises around 179,000 square feet of office and ground floor retail, as well as a 147-stall standalone parking arrangement. Hudson Pacific plans for an exclusive repositioning of the property and deliver the new office building by 2017. It is currently 93% leased and 52% of the leases are slated to end over the next four years.

The capital infusion is a strategic fit as it would help Hudson Pacific increase its financial flexibility and aim for opportunistic acquisitions like that of Merrill Place. This acquisition would help it expand its growing office portfolio in Downtown Seattle. Moreover, the debt pay off would lower its interest expenses.

Hudson Pacific currently carries a Zacks Rank #2 (Buy). Investors interested in the REIT industry may also consider stocks like Extra Space Storage Inc. (EXR - Snapshot Report), First Industrial Realty Trust Inc. (FR - Snapshot Report) and Healthcare Trust of America, Inc. (HTA - Snapshot Report). All these stocks carry the same rank as Hudson Pacific.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GROUP DXYN 15.84 +7.90%
BOFL HOLDING BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%