Victor Coleman’s Hudson Pacific Properties posted a $572 million loss in 2025. It was another year of nine-figure losses for the Los Angeles office and studio owner, which partly blamed its Quixote Studios.
The real estate investment trust spent $360 million four years ago to purchase Quixote, which rents sound stages, cast trailers, grip and lighting and other production-related equipment. That was before Los Angeles’ entertainment industry slowdown resulting from writers’ and actors’ strikes, cheaper production costs abroad, media consolidation and studio spending cutbacks.
On the REIT’s earnings call in late February, Coleman said he wanted to eliminate Quixote’s drag by year-end. He didn’t say how he planned to do that publicly until this week.
A note to clients and partners viewed by The Real Deal reads: “Quixote has made the difficult decision to begin the process of winding down most of our sound stage business in Los Angeles, including our main commercial studio in West Hollywood … We have persisted through the prolonged and ongoing slowdown in commercial, television, and film production. But ultimately, industry conditions have forced difficult decisions.”
It plans to pull out of Atlanta, too, according to the note sent to clients Tuesday. The Hollywood Reporter, which first reported the news, put layoffs at about 70 people. Quixote’s Griffith Park Studios will stay open.
In a public announcement, Hudson Pacific said that could mean $21 million to $27 million in potential annualized cost savings, which it expects to begin to materialize in the second half of the year.
Less than $30 million in annual savings doesn’t sound like enough to stop the bleeding, but Hudson Pacific plans “to focus financial and operational resources on our office portfolio and higher performing segments of our studio business,” the company said in the announcement.
HPP did not respond to a request for comment.
The shift has been in the works since last year. Quixote’s 2025 operating losses prompted Hudson Pacific to terminate leases, close operating locations and reduce staff, according to its February annual report.
The firm spent over $500,000 on legal expenses for early lease terminations last year, after spending $2.5 million in 2024 on dead deals.
But last year, the company was largely hurt by a roughly $300 million loss from writing down the value of its Quixote business.
Hudson Pacific made it clear that its Sunset Studios, which is not part of Quixote, would be unaffected. The Sunset Studios real estate, plus some office towers, are part of a Hudson Pacific and Blackstone Hollywood media portfolio, which counts Netflix as a tenant. It has a $1.1 billion loan coming due in August. Netflix is in talks to buy the Radford Studio Center, which may influence refinancing discussions or lease renewals.
Coleman’s compensation took a hit because of shareholder sentiment over the company’s performance. His total compensation was valued at about $25 million two years ago. He received $22 million in upfront equity to encourage retention and align with stockholders.
His compensation was valued at less than $3 million last year. He voluntarily forfeited his 2024 performance-based equity awards and was not granted replacement awards. The value of his stock awards became $7.5 million, and he received no equity awards.
His future pay won’t be what it once was either. “Compensation opportunities were meaningfully reduced, particularly for our CEO,” the company noted in the financial filing.
But HPP’s stock was up on the Quixote news, which may mean shareholders liked what they heard. The REIT reports earnings next week.
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Commercial
Los Angeles
Victor Coleman’s Hudson Pacific posts $572 million annual loss
Commercial
Los Angeles
REIT’s new reality: Hudson Pacific trims Coleman’s compensation