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Blackstone is buying out Jeff Worthe’s partners in Burbank portfolio
Majority stake in 5 or 6 offices said to be valued at up to $1.5B
Blackstone Group is making a major recapitalization play in Burbank.
The real estate giant agreed to buy majority stakes in five or six office properties in the city. The recap deal is estimated to be worth $1.5 billion, REAlert reported.
The sellers are the various partners of investor Jeffrey Worthe, who heads Santa Monica-based Worthe Real Estate Group. They will cash out of the buildings, while Worthe retains a small interest and continues to manage them.
Eastdil Secured is arranging the recapitalization.
The deal will give Blackstone majority ownership of Pinnacle 1, at 3300 W. Olive Avenue, and Pinnacle, 2, at 3400 W. Olive Avenue, which Worthe owns in a joint venture with Hudson Pacific Properties.
The portfolio also includes the Pointe offices at 2900 W. Alameda Avenue, which Worthe developed in 2009 with unknown partners; the Tower Burbank at 3900 West Alameda Avenue, which Worthe acquired with fund operator PCCP in 2014; the Central Park at Toluca Lake building at 3500 W. Olive; and the Disney building at 3800 W. Alameda, according to REAlert.
The Media Studios North campus at 2255 North Ontario Street may also be included in the deal, several sources told The Real Deal. However, the property’s inclusion could not be confirmed. [REAlert] — Hannah Miet