Hudson Pacific Properties, Inc. has completed the disposition of a two-building complex at 875 and 899 Howard in downtown San Francisco, selling the assets for $65.5 million before prorations and closing costs. The sale covers approximately 284,000 square feet across the adjacent properties. The buyer was not disclosed.
The larger of the two assets, 875 Howard, is an office building of roughly 188,000 square feet. At the time of sale, the property was only 36% occupied, with its remaining major lease scheduled to expire next year. The building had previously been occupied by Snapchat, underscoring the broader pullback in occupancy by technology tenants in the market.
The second property, 899 Howard, is an approximately 96,000-square-foot former retail building that was fully vacant when the transaction closed. Prior to the sale, Hudson Pacific secured entitlements to convert two floors of this property to office use, positioning it for a potential change in how the space could be utilized going forward. The transaction therefore included a building with approved plans for a shift away from its historical retail orientation toward office deployment.
In a statement announcing the sale, Victor Coleman, chairman and CEO of Hudson Pacific, characterized the transaction as part of the company's broader effort to recycle capital out of what it views as non-core assets. He noted that the firm leveraged what it sees as a deep understanding of San Francisco's growing office demand as it repositioned 899 Howard ahead of the sale. Coleman also emphasized that exiting these properties removes significant capital expenditure and re-leasing risk from the company's portfolio while improving financial flexibility.
The disposition fits within Hudson Pacific's ongoing program of asset sales and portfolio optimization. The company signaled that it intends to continue pursuing additional dispositions and to focus on leasing up space across the remainder of its holdings. While specific buyer information and return metrics were not disclosed, the transaction highlights current dynamics in downtown San Francisco, where ownership is actively weighing vacancy, lease rollover timing and re-tenanting costs when making hold-or-sell decisions.
A photo of 899 Howard associated with the announcement was credited to Plant Construction, reflecting the visibility of the asset within the local built environment. No further details were provided regarding the buyer's business plan, financing structure or timing for any future repositioning activity at the complex.
