Canyon Partners, JPMorgan Chase Lend $193M for NYC Studio
East End Studios secured financing to develop the Sunnyside Campus in Queens
By Brian Pascus July 25, 2023 1:54 pm
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There may be writers and actors strikes in Hollywood, but in New York City studios continue to be built — and financed.
East End Studios has secured $193 million in construction financing for the ground-up development of Sunnyside Campus, a 275,000-square-foot facility featuring three Class A soundstages for film and television production that span 75,000 feet, Commercial Observer has learned.
JPMorgan Chase (JPM) and Canyon Partners Real Estate co-originated the senior construction loan. The New York City Industrial Development Agency (NYCIDA) helped lower the cost of the public-private investment by supplying tax incentives to East End Studios.
“New York City is one of the largest entertainment markets in the world, with significant unmet demand,” said Jonathon Yormak, a founding partner at East End Studios, in a statement. “Our Sunnyside Campus is going to meet that demand while establishing an elevated standard for modern studio workflows.”
The New York City Economic Development Corporation (NYCEDC) also consulted on the transaction.
“The development of the new East End Studios – Sunnyside Campus is going to be an economic boom for the film and TV industry and provide much-needed studio space in New York City which will result in hundreds of new, good-paying jobs for New Yorkers,” said NYCEDC President and CEO Andrew Kimball.
The new Sunnyside Studios aims to take advantage of the entertainment industry’s growing need for more production space. Located between Queens Boulevard and the Long Island Expressway, the Sunnyside Studio campus is close to both the 7 train, the Long Island Railroad and numerous other transportation options.
The three ground-floor stages will have 37-foot ceiling heights and have the option of being subdivided. A larger, 15,000-square-foot rooftop flex stage will feature 26-foot ceilings and provide panoramic views of Queens, Brooklyn and Manhattan. The three stages are buttressed by a 125,000-square-foot development of office and production spaces, while the campus will include 225 parking spaces and eight enclosed loading bays for production trucks.
Pat Swinney Kaufman, commissioner of the Mayor’s Office of Media and Entertainment, noted that a New York State tax credit provides film studios with an incentive to relocate to New York City and film productions on-site.
“The new East End Studios – Sunnyside Campus will serve as an economic driver for local businesses and create jobs for New Yorkers,” said Kaufman, who noted that the city carries an $82 billion film and TV industry that makes up 6.5 percent of total New York City’s gross domestic product.
This is yet another public-private partnership between the State of New York and Canyon Partners Real Estate.
Since being founded in 1990 by Josh Friedman and Mitch Julis, Canyon Partners has invested $950 million in debt and equity to generate $3.3 billion in total CRE projects in the state of New York, according to the firm’s website.
The firm has seven offices worldwide, including three in Asia, and holds $24 billion assets under management.
Brian Pascus can be reached at bpascus@commercialobserve.com
