Bisnow/Allen Matkins - Future of SOMA - Howard Stern, Hudson Pacific

According to president Howard Stern, Hudson Pacific Properties took a leap of faith when it acquired 1455 Market in mid-Market at the end of 2010, "when many people wouldn't even reduce their speed to 30 mph" as they drove past. HPP saw an opportunity to buy an asset that was north of 1M SF for $90/PSF but the challenge was that half of it was a podium data center. Little did they now that the "fat boy 90k SF footprint" would be attractive to techies. Since acquisition, HPP has done a deal with Square for more than 300k and has leases for another floor in the podium. HPP hopes to grow in SoMA but "it's going to be more challenging based on the frothiness of the market."