Sources: Line 204 to Sell LA Studio Development
The largest studio development in more than 30 years will add two buildings with about 10 soundstages and production offices in the San Fernando Valley
The market for soundstages and studio space is driving Los Angeles into 2021.
Line 204, a boutique studio and production rental company, is set to unload a 10-acre studio development in the San Fernando Valley, according to a source familiar with the deal. Separately, a financial analyst familiar with the sales effort told Commercial Observer off-the-record that Hudson Pacific Properties (HPP) will acquire the property for $28 million.
HPP and Line 204 both declined opportunities to comment. One source said no brokers were involved.
The 240,000-square-foot complex is located at 11038-11070 Peoria Street in the Sun Valley neighborhood. It will include two buildings with about 10 soundstages and production offices. According to a press release from when Line 204 defeated appeals to the project, the development will be the largest studio complex to be completed in L.A. in three decades.
Bastien and Associates designed the project. The architecture firm is also behind the CBS Studio Center, Manhattan Beach Studios, and Los Angeles Center Studios, among others.
HPP owns one of the top studio portfolios in the region, tapping into the “streaming wars” and overall rampant demand for content with tenants like Netflix, CBS, ABC, HBO and NBC. Studio executives also told CO that the pandemic created a backlog in demand for production space, leading to increasing rents.
HPP made the deal of the year in 2020, when it formed a $1.7 billion joint venture with Blackstone Group to capitalize on its Hollywood office and studio portfolio. HPP is also currently expanding that portfolio, and is in the entitlement process to grow the Sunset Gower Studios to more than 1.1 million square feet.
Alton Butler launched Line 204 in 1997 out of his garage in Studio City, the firm said in a press release. Line 204 secured entitlements from the city for the Sun Valley development years ago, but a neighborhood group challenged the project in court, delaying it for years, and costing the Pacoima-based company more than $1 million, according to media reports.