Debt Tied to Blackstone’s Burbank Creative Office Sent to Special Servicing
Blackstone had acquired a majority stake in the property as part of a portfolio deal in 2017.
By Nick Trombola January 22, 2026 12:40 pm
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Los Angeles County’s office fundamentals are slowly rebounding, but high vacancy and distress are still omnipresent in the post-pandemic era, and Blackstone and Worthe Real Estate are the latest investment firms to feel the heat.
An $87 million commercial mortgage-backed securities (CMBS) loan tied to Blackstone’s 3300 West Olive Avenue, a 225,000-square-foot property in Burbank, has transferred to special servicing due to imminent default, according to a Morningstar report. The debt, originated by Wells Fargo, is scheduled to mature in June.
Blackstone acquired its stake in the property, dubbed Pinnacle II, in 2017 as part of a six-property deal for $1.7 billion. The portfolio, in Burbank’s Media District, houses top entertainment companies such as DreamWorks, the Walt Disney Company and Sony. Yet Pinnacle II in particular has fallen on harder times.
Warner Brothers was the sole occupant of Pinnacle II, but vacated the building ahead of its lease expiration in late 2022. The building has sat virtually empty since then, and its net cash flow has been negative since 2023, per Morningstar.
An undisclosed tenant plans to move into the property this summer, but that deal accounts for little more than one-quarter of the building’s available space.
A spokesperson for Blackstone declined to comment. Representatives for Wells Fargo and minority owner Worthe did not immediately respond to requests for comment.
The dearth of new studio productions in and around L.A. since the 2023 Hollywood labor strikes is palpable, and has led to severe challenges for the region’s soundstage and creative office owners. Earlier this month, Hackman Capital Partners defaulted on $1.1 billion in debt tied to Radford Studio Center, one of the oldest lots in Hollywood. Hackman is expected to hand the keys to the 1.2 million-square-foot lot to lender Goldman Sachs.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
