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HPP and Blackstone refinance Hollywood portfolio with $1B loan
Barclays, Bank of America and 2 others originated debt on 2M sf of studios, offices
Hudson Pacific Properties and Blackstone Group have secured a $1.1 billion refinance on their Hollywood film studio and office portfolio.
Barclays, Bank of America, Wells Fargo Bank and Société Générale originated the two-year, floating-rate and interest-only loan, according to Commercial Observer. Proceeds from the new financing were used to pay down the previous $900 million CMBS debt.
The partners nabbed the previous loan shortly after Blackstone bought a 49 percent stake in HPP’s $1.65 billion Hollywood portfolio last year.
The 2.2-million-square-foot studio and office portfolio includes Sunset Bronson, Sunset Gower, and Sunset Las Palmas Studios.
It also includes the office complexes of 6040 Sunset Boulevard, ICON, CUE, EPIC, and Harlow.
The portfolio as a whole is 86 percent occupied with a weighted average lease term of about seven and a half years, according to the report.
Netflix is the largest single tenant across the portfolio with about 700,000 square feet combined of office and studio space. ABC, Disney, and KTLA also rent chunks of the property.
The JV also has big plans to expand the Sunset brand. They’re nearly set to double the size of Sunset Gower Studios with another 500,000 square feet of office and studio space.
They’re also planning to expand the Sunset Studios brand with a 10-acre complex in Sun Valley.
Their largest project is slated for across the pond. The partners want to build a 91-acre complex north of London. It would be the brand’s first property outside of the United States.
[CO] — Dennis Lynch