Hudson Pacific Properties has completed the sale of its 875 and 899 Howard Street office complex in downtown San Francisco for $65.5 million before prorations and closing costs, offloading roughly 284,000 square feet that had sat largely empty for years. The two-building property, once home to a Snap Inc. office and a defunct Burlington Coat Factory, closed at a price that works out to about $230 per square foot.
According to The National Law Review, Hudson Pacific announced the deal Saturday, noting it had secured office entitlements at 899 Howard ahead of the closing. The REIT, which trades on the NYSE under the ticker HPP and focuses on top-tier real estate across high-barrier-to-entry West Coast gateway markets along with studio properties in Los Angeles and New York, did not identify the buyer. That leaves open whether the new owner intends to keep leasing the buildings as offices or pursue an adaptive-reuse path.
A Complex That Went From $46 Million Buy to Mostly Vacant
Hudson Pacific originally bought the two-building complex in 2007 for $46 million, then poured money into converting roughly 86,000 square feet of retail and institutional space into offices a decade later, according to The Real Deal. That long-term investment makes the $65.5 million exit price a steep comedown from the capital the company sank into the property.
By the time Hudson Pacific put the complex up for sale, the 91,874-square-foot building at 899 Howard — the former Burlington Coat Factory site — sat 100% vacant and in shell condition, while 875 Howard was only partially occupied, with mobile gaming company Glu Mobile holding two floors, The Real Deal reported. Tech firm Snap Inc., the parent company of Snapchat, had leased roughly 30,000 to 33,000 square feet at 875 Howard before moving out in October 2022, per the same account.
Part of a Larger West Coast Sell-Off
The Howard Street sale wasn't an isolated move. Hudson Pacific had also announced a sale of 2001 Gateway in North San Jose, and combined with the Howard Street deal, that brought the REIT's third-quarter disposition total to $90.5 million, according to TipRanks.
Hudson Pacific Chairman and CEO Victor Coleman said in September that selling 875 and 899 Howard eliminates significant capital expenditure and re-leasing risk while enhancing the company's financial flexibility, per Business Wire. The comment reflects a REIT under financial pressure: Hudson Pacific's common stock dividend remains suspended, according to The Registry.
901 Market Street Points to a Different Strategy
Hudson Pacific isn't treating every underperforming San Francisco asset the same way. Earlier this year, the company filed plans to convert its 32.4%-occupied office building at 901 Market Street into residential apartments, a move Hoodline previously reported on when the plans surfaced. At 32.4% occupancy, 901 Market was more occupied than 899 Howard (0%) and 875 Howard (31.9%), illustrating a dual approach of selling some distressed properties while re-entitling others for housing.
The Howard Street sale also lands squarely within San Francisco's broader office market struggles. Citywide office vacancy stood at 29.2% in the second quarter of 2026, even as artificial intelligence companies kept expanding their footprints along the nearby Howard Street corridor in SoMa, a dynamic Hoodline has tracked in its coverage of the neighborhood's shifting office demand.
The buyer's plans for 875 and 899 Howard remain an open question.
