Here’s what tenants pay at Blackstone and Worthe’s Tower at Burbank

Disney’s animation unit and WeWork are lease the most space at 490K sf building

Los Angeles /
Aug.August 21, 2020 12:00 PM
The Tower at Burbank at 3900 West Alameda Avenue with Jeffrey Worthe and Blackstone Group President Jonathan Gray (Getty, Google Maps)
The Tower at Burbank at 3900 West Alameda Avenue with Jeffrey Worthe and Blackstone Group President Jonathan Gray (Getty, Google Maps)

When Blackstone acquired a 49 percent stake in Hudson Pacific Properties’ massive Hollywood real estate portfolio this month, it was a big bet on Los Angeles’ booming entertainment industry.

But it wasn’t the investment giant’s first.

In 2017, Blackstone picked up a portfolio of six office buildings in Burbank for its core-plus real estate business, which targets high-growth markets with value growth potential. The six separate deals included an 80-percent stake in the Tower at Burbank at 3900 West Alameda Avenue, where Disney is the largest tenant. Investor Jeffrey Worthe retained a minority stake, and his firm manages the property.

Last year, Blackstone landed a $195 million loan from Wells Fargo to refinance the 490,000-square-foot property, which was then packaged into three CMBS conduit transactions. As was the case with Blackstone’s recent studio buy, CMBS loan documents provide an inside look at the property’s rent roll.

As of last July, the 32-story office tower was 97-percent leased to 15 tenants in the media, entertainment, technology, real estate, finance and co-working sectors, with annual base rents ranging from $42 to $49 per square foot.

The 116,000-square-foot Disney lease was newly signed, with Disney’s animation unit set to start occupying the space this January. The second largest tenant, WeWork, signed a 15-year, 75,000-square-foot lease at the property in 2017, with two five-year renewal options and no termination options.

According to the loan prospectus, the property was just 4-percent occupied when Worthe first acquired it in 2014, and occupancy had risen to 55 percent when Blackstone acquired its stake. The joint venture has since invested $21.5 million in capital upgrades for the building, according to Kroll. Amenities include a fitness center, a cafe, and a tenant lounge with an arcade, pool table, and bar.

The Tower at Burbank is located in the Burbank Media District, a major entertainment hub. (Source: Loan prospectus via Trepp
The Tower at Burbank is located in the Burbank Media District, a major entertainment hub. (Source: Loan prospectus via Trepp

Related Articles

arrow_forward_ios
Pair of proposals would bolster Disneyland Resort, add residential to area
Pair of proposals would bolster Disneyland Resort, add residential to area
Pair of proposals would bolster Disneyland Resort, add residential to area
Burbank mayor Bob Frutos, Burbank Aero Crossing and LaTerra Development's Charles Tourtellotte (Getty, LaTerra Development)
Burbank approves mixed-use plan for former big-box retail
Burbank approves mixed-use plan for former big-box retail
$90.5M for Burbank office tower
$90.5M for Burbank office tower
$90.5M for Burbank office tower
Value-add eyed in latest deal for Burbank media space
Value-add eyed in latest deal for Burbank media space
Value-add eyed in latest deal for Burbank media space
Armata Pharmaceuticals CEO Brian Varnum and Montana Avenue Capital Partners Managing Partner Jeremy Rogers with 5005 McConnell Ave (Montana, Armata)
Pharma outfit sees R&D in 56K sf HQ near Marina del Rey
Pharma outfit sees R&D in 56K sf HQ near Marina del Rey
LaTerra gets $198.5M to finance Burbank apartments
LaTerra gets $198.5M to finance Burbank apartments
LaTerra gets $198.5M to finance Burbank apartments
$161M fixer-upper in “media capital”
$161M fixer-upper in “media capital”
$161M fixer-upper in “media capital”
LA’s Top 10 home listings
LA’s Top 10 home listings
LA’s Top 10 home listings
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...