$ 900 million loan to Goldman Sachs and Barclays LA filming studio – Business Watcher
Goldman Sachs and Barclays team up on the $ 900 million loan for black stonethe blockbuster deal with Hudson Pacific Properties to recapitalize three major film studios and modern offices in the heart of Hollywood.
Blackstone announced earlier this week that it acquires a 49% stake in the 2.2 million square feet of Hudson Hollywood Media Portfolio, which includes major leases with leading tenants such as Netflix. Commercial mortgage loant communicated the details of the funding. The deal values the space at $ 1.65 billion.
Goldman is leading the financing and will fund 70% of the five-year variable rate loan to the joint venture, according to CMA. They plan to securitize the amount as part of a stand-alone commercial mortgage guarantee offer.
Hudson, the Los Angeles-based REIT, will retain a 51% interest and will continue to maintain and operate the properties. The portfolio includes Sunset Bronson, Sunset Gower, and Las Palmas Sunset Studios, as well as 966,000 square feet in notable Class A office buildings adjacent to the studios, including 6040 Sunset, ICNE, CUE, EPIC and the soon to be over Harlow development.
The joint venture also includes the rights to develop 1.1 million square feet of office and production facilities. Before the transaction, the CFO Diramerian Harout, also said the company had sufficient cash and enough dry powder to pursue new opportunities when Hudson’s first quarter earnings call earlier this year.
Eastdil secure negotiated the loan and is Hudson’s primary financial advisor. BofA Titles also financial advisor.
Filming production in LA is supposed to go up this month. The occupation of the studio was on the rise in recent years, and the production gap in relation to shelter-in-place orders is expected to drive demand for filming scenes. Grand LA has at least 334 certified sound stages and a combined 5.7 million square foot production space, according to FilmLA, the nonprofit group that manages permits for LA County. That’s almost as much as the top five competitors in the market combined.
Netflix said it will spend $ 17 billion on original content in 2020 and expects 7.5 million new subscribers in the second quarter. Last month, Eric Willett, CBREThe regional research director of, said the region’s creative industries account for 15% of the region’s job base, and the stoppage of filming “has created a huge pent-up demand for production space.” .