Hudson Pacific Properties, Blackstone Secure $94M Loan for Sunset Glenoaks Studio
Construction near Burbank started in fourth-quarter 2021 and will add 241,000 square feet and seven sound stages to the firms' holdings
By Greg Cornfield February 21, 2022 7:30 pm
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Hudson Pacific Properties reported in its fourth-quarter results last week that it secured a $94 million construction loan for a portion of the Sunset Glenoaks studio development with Blackstone.
The project is estimated to cost between $180 million and $200 million. New York-based RBC Real Estate Capital Partners provided the loan, property records show.
Construction started in fourth-quarter 2021 and will add 241,000 square feet and seven sound stages to Hudson and Blackstone’s joint Hollywood studio portfolio. It will be the fourth such property managed by the two firms, and bring their total to 42 sound stages.
Sunset Glenoaks is located at 11070 West Peoria Street in the Sun Valley neighborhood near Burbank. It’s expected to be complete by the third quarter of 2023. Hudson said the development will offer content creators a unique production environment as the first large-scale facility built in the city in more than 20 years.
Mark Lammas, president of Hudson, said during the quarterly earnings call that the firm expects Sunset Glenoaks to generate approximately $15 million of new annual income once it’s operational.
CEO Victor Coleman said the pandemic accelerated pre-leasing studio demand trends, “driving an abundant amount of capital to the tech and media industries.”
“Production spend is anticipated to increase again this year as the battle for streaming service subscribers further intensifies the U.S. and global markets alike,” Coleman said. “As the demand for content continues to expand, we are well positioned to benefit in the coming years.”
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
