Here’s what tenants pay in Blackstone and Worthe’s Burbank office portfolio
Disney, Kaiser Permanente, Warner Bros. are among largest tenants
Home to major studios for Disney, Warner Bros. and Comcast’s NBCUniversal, the Burbank Media District is one of the major hubs of the global media and entertainment industry.
Blackstone made a big play in this neighborhood in 2017 when it acquired majority stakes in a handful of office buildings co-owned by Santa Monica-based Worthe Real Estate Group. The portfolio included the Tower at Burbank at 3900 West Alameda Avenue, Pinnacle 1 and 2 at 3300 and 3400 West Olive Avenue, and a quartet of properties that Blackstone would refinance with a $1 billion loan from Deutsche Bank and UBS.
That loan was securitized into several CMBS transactions, including a single-borrower deal dubbed DBUBS 2017-BRBK. Documents associated with the refinancing provide an inside look at the finances of these four office properties.
Included in the collateral are:
- Media Studios, a five-building, 930,000-square-foot complex near Hollywood Burbank Airport that was redeveloped in stages from 1998 to 2005
- The Pointe, a 14-story 480,000-square-foot building at 2900 West Alameda Avenue that Worthe built in 2009
- 3800 West Alameda Avenue, a 20-story, 425,000-square-foot office tower that Worthe bought from Disney in 2007
- Central Park, a 14-story, 256,000-square-foot property built in 1985
The largest tenant across the portfolio is the Walt Disney Company, occupying nearly all of 3800 Alameda, which serves as the world headquarters for Radio Disney and the broadcasting base for the Disney Channel, as well as a backup for East Coast operations including ESPN. Separately, Disney’s film production arm Walt Disney Pictures occupies 150,000 square feet at the Media Studios complex.
Health care company Kaiser Permanente is the largest tenant at Media Studios and the second-largest overall, with 194,000 square feet — about 20 percent of total rentable space — and gross rent of about $40 per square foot.
The third largest tenant in the portfolio is Warner Bros., with 100,000 square feet at the Pointe and 62,000 at Central Park. The media conglomerate plans to consolidate its office space at the nearby, 35-acre Burbank Studios, which it bought from Worthe and Stockbridge last year. Completion of the 800,000-square-foot Frank Gehry–designed complex is set for 2023.