Warner Bros.’ shiny new 800,000-square-foot headquarters in the entertainment capital of the world has landed a blockbuster financing package.
Development firm Worthe Real Estate Group and partner Stockbridge announced Thursday a $475 million fixed-rate mortgage led by Wells Fargo (WFC) and Morgan Stanley (MS), backed by the Frank Gehry-designed Second Century. The length of the financing was not disclosed, but the sponsor said it’s the first commercial mortgage-backed securities office loan on a single asset for one borrower since 2022.
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Worthe completed Second Century, which is seven and nine stories in height, in May 2023. It’s on the southernmost portion of the famous Burbank Studios and adjacent to the Warner Bros. main lot. The office was named to signify the 100-year anniversary of Warner Bros.
Worthe and Stockbridge are also working on a $500 million redevelopment of Warner Bros. Ranch, which will include 926,000 square feet of new construction with 16 soundstages. Warner Bros. will lease it in 2025.
Eastdil Secured served as exclusive adviser to Worthe and Stockbridge. Second Century is Worthe’s 13th building in Burbank, which is home to perhaps the world’s largest concentration of major studios and entertainment corporations.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
