Hollywood Studio Loan Gets 15-Month Reprieve as REIT Stabilizes Portfolio
Hudson Pacific Properties and Blackstone secured a 15-month extension on a $1.1 billion loan backed by 2.2 million square feet of Hollywood studio properties, pushing the maturity date to November 2027. The note, which covers Sunset Gower Studios, Sunset Las Palmas Studios, and Sunset Bronson Studios along with adjacent office buildings, had been transferred to special servicing days before its August 9 deadline. The borrowers did not pay down principal and retained the original interest rate, but agreed to fund a $20 million leasing reserve from excess cash flow.
Hudson Pacific owns 51% of the three-studio portfolio, with Blackstone holding the remaining 49%. The three properties were 95.5% leased as of early August, with tenants including ABC and Netflix. The facilities received approval in 2020 for an expansion adding nearly 500,000 square feet of creative office and production support space.
The extension provides breathing room as Hudson Pacific unwinds troubled production bets elsewhere. The REIT is shutting down facilities in Pacoima, Panorama City, and West Hollywood operated by Quixote, a soundstage services company it acquired for $360 million in 2022 that has posted sustained occupancy declines and operating losses. Hudson Pacific reported a $105 million loss in the second quarter despite signing 1.3 million square feet of office leases, following a $53 million loss in the first quarter.
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