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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 Animation HQ (Ocean West)
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.