Brookfield in deal for DreamWorks studio in Glendale
$327M sale marks Toronto-based investor’s first stride into studio real estate
UPDATED, Nov. 3, 6:05 a.m. PT:
Who knew Brookfield was a fan of Shrek?
Brookfield has struck a deal to acquire the DreamWorks Animation headquarters where the lovable ogre was created in Glendale.
The investment giant is buying the seven-building property from Seoul-based Hana Asset Management and Ocean West Capital Partners in El Segundo, sources confirmed to The Real Deal. The price is $327 million, Real Estate Alert reported.
Sources confirmed a deal was in escrow and is set to close next month. Neither Toronto-based Brookfield, Hana or Ocean West responded to requests for comment.
Hana and Ocean West bought the 450,000-square-foot property from Griffin Capital for $297 million in 2017, records show.
DreamWorks has occupied the property at 1000 Flower Street since it was built in 1997, when it served as headquarters for DreamWorks SKG — an animation empire that would go on to make hits such as “Shrek,” “Madagascar” and “How to Train Your Dragon.”
The animation studio, which was acquired by Comcast in 2016, holds a lease on the property through 2035.
The sale will mark Brookfield’s first major foray into the studio real estate market.
Last year, Brookfield made a run at buying Blackhall Studios, a production studio in Atlanta. However, Los Angeles-based Commonwealth Group eventually purchased the 850,000-square-foot development for $120 million.
Large institutional investors such as Blackstone and Bain Capital have recently poured billions into studio real estate, spurred by ever-increasing demand for content. Streaming services like Netflix are also holding longer leases on properties, making the asset class more comfortable to own for investors.
A number of production facilities in the area have sold recently, emphasizing the market’s status as a hub for streaming services and content. One of was sold in the neighboring city of Burbank by Ocean West and Fortress, which jointly owned a 125,000-square-foot property that fetched $62 million in May.
CORRECTION: This story initially reported the DreamWorks Animation headquarters was in Burbank, not Glendale.