Blackstone partners with Worthe Real Estate on 500K sf office tower

Los Angeles /
Nov.November 17, 2020 11:30 AM
Burbank Studios with Blackstone's Nadeem Meghji and Jeffrey Worthe (Google Maps)
Burbank Studios with Blackstone’s Nadeem Meghji and Jeffrey Worthe (Google Maps)

Blackstone Group and Worthe Real Estate Group plan to develop a 500,000-square-foot office tower near Burbank and Warner Bros. studios, as companies like Netflix and Amazon ramp up their content creation.

The project would be among Los Angeles’ largest office developments this year, and would be marketed to entertainment business tenants, according to the Wall Street Journal. The partnership plans to break ground on the project in 2022.

The development site is across the street from the 35-acre Burbank Studios, and next door to a similarly large office building that’s fully leased thanks in part to demand from the studio.

Overall demand for office space has plummeted in L.A. since the pandemic forced workers home. Demand for space serving television, film, and online platforms has been more stable thanks in part because of demand for content from homebound consumers.

Netflix signed the biggest lease of the year in September when it scooped up 171,000 square feet at the Burbank Empire Center.
“Content creation is one of our highest conviction themes,” said Nadeem Meghji, Blackstone’s head of real estate Americas, told the Journal. “We’re seeing long-term demand growth.”

Blackstone and Jeff Worthe-led Worthe Real Estate formed their partnership in 2017 and together have invested $1.7 billion to own 13 buildings and five development parcels.

It’s Blackstone’s second major investment in the media production business in L.A. this year. Over the summer, the firm bought a 49 percent stake in Hudson Pacific Properties’ Hollywood studio and office portfolio. They just won approval to add 500,000 square feet of office and production space to Sunset Gower Studios. [WSJ] — Dennis Lynch 


Related Articles

arrow_forward_ios
Continuum CEO Mark Falcone and a rendering of the project (EYRC Architects via Urbanize)

Continuum Partners, Platinum Equities plan Arts District office tower

Continuum Partners, Platinum Equities plan Arts District office tower
Jeffrey Worther and Blackstone’s Jonathan Gray with (clockwise from top left) Media Studios, The Point, 3800 Alameda and Central Park (Getty)

Here’s what tenants pay in Blackstone and Worthe’s Burbank office portfolio

Here’s what tenants pay in Blackstone and Worthe’s Burbank office portfolio
Victor Coleman and a rendering of the project (Credit: Gensler via Urbanize)

Hudson Pacific wins key approval for 500K sf Hollywood studio expansion

Hudson Pacific wins key approval for 500K sf Hollywood studio expansion
The Beverly Hills office (Credit: Google Maps)

Sam Hakim-led family firm pays $36M for Beverly Hills office

Sam Hakim-led family firm pays $36M for Beverly Hills office
Onni Group’s Rossano De Cotiis and a Wilshire Courtyard rendering

Onni Group’s Wilshire Courtyard overhaul would triple square footage

Onni Group’s Wilshire Courtyard overhaul would triple square footage
Adam Belfer and Asher Luzzatto with a rendering of the converted dairy

Luzzatto scores $49M construction loan for Sweetgreen HQ in West Adams

Luzzatto scores $49M construction loan for Sweetgreen HQ in West Adams
1.6 million square feet of office space was leased in L.A. in Q3

LA office market leasing fell 61% in Q3

LA office market leasing fell 61% in Q3
The remote work reality has sent San Francisco’s office vacancy rate surging

San Francisco office vacancy hasn’t been this high in years

San Francisco office vacancy hasn’t been this high in years
arrow_forward_ios

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

Loading...