Worthe Real Estate Group and Stockbridge Capital Group have scored a $475 million mortgage tied to their 801,000-square-foot headquarters for Warner Bros. in Burbank.
The Santa Monica-based developer and San Francisco-based investor secured the fixed-rate loan for the Frank Gehry-designed Second Century hub at 100-200 South California Street, next to the Warner Bros. studio lot, the Commercial Observer reported.
The financing — the first commercial mortgage-backed securities office loan on a single property for one borrower since 2022 — was led by Wells Fargo and Morgan Stanley. Terms of the financing were not disclosed. Eastdil Secured served as adviser to Worthe and Stockbridge.
Worthe completed the seven- and nine-story Second Century in May 2023 at the southern end of the famous Burbank Studios lot, along the 134 Freeway. The two-building, 7-acre project was named to celebrate the 100-year anniversary of Warner Bros.
Financial terms of Warner Bros.’ lease were not disclosed, but estimates from when it was announced in 2019 suggest it’s more than $800 million, according to the Observer.
Worthe Real Estate Group owns and has developed more than 7 million square feet of commercial space across Southern California. Over the last 15 years, the firm has shifted to owning and developing more studios, according to The Real Deal.
Worthe and Stockbridge are also working on a $500 million redevelopment of Warner Bros. Ranch, which will include 926,000 square feet of new construction with 16 soundstages. Warner Bros. will lease it next year.
Second Century is Worthe’s 13th building in Burbank, home to one of the world’s largest concentrations of major studios and entertainment firms.
— Dana Bartholomew
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