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

Project would rise near Burbank and Warner Bros. studios, as Netflix and Amazon keep expanding content creation

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
Kingsbarn's Jeff Pori and Cruzan’s Dennis Cruzan and with 23332 Mill Creek Drive (Kingsbarn Real Estate Capital, Cruzan, LoopeNet)
Cruzan sells Laguna Hills office complex to Kingsbarn
Cruzan sells Laguna Hills office complex to Kingsbarn
Rising Realty’s Christopher Rising and KW Commercial’s Tony Wood; Park DTLA at 261 South Figueroa Street (Rising Realty, Park DTLA, Getty)
Cut and run: Ready Capital looks to offload Park DTLA office campus
Cut and run: Ready Capital looks to offload Park DTLA office campus
Hudson Pacific Properties' Victor Coleman (Hudson Pacific Properties, Getty)
Hudson Pacific feels brunt of slow office market
Hudson Pacific feels brunt of slow office market
WeWork's Sandeep Mathrani and Worthe Real Estate's Jeff Worthe with 3900 West Alameda Avenue (WeWork, Getty, The Tower)
WeWork to close Burbank location
WeWork to close Burbank location
1601 Vine Street; J.H. Snyder's Michael Wise and Lon Snyder; WeWork's Sandeep Mathrani (Loopnet, Getty, J.H. Snyder)
WeWork to close Hollywood location
WeWork to close Hollywood location
WeWork CEO Sandeep Mathrani and WeWork Lantana at 3000 Olympic Boulevard in Santa Monica (WeWork, Illustrtaion by The Real Deal with Getty)
WeWork, L.A. Chamber link for back-to-office push
WeWork, L.A. Chamber link for back-to-office push
621 Hawaii Street (LoopNet)
Office-industrial portfolio costs BLT Enterprises $150M
Office-industrial portfolio costs BLT Enterprises $150M
From left: Colliers' Sean Fulp, head of Western US David Josker, Mark Schuessler, and Ryan Plummer (Colliers, Newmark, Getty Images)
Colliers poaches Newmark capital markets team
Colliers poaches Newmark capital markets team
arrow_forward_ios

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

Loading...