Investment group Blackstone is buying a big minority stake in three Hollywood studios — Sunset Bronson, Sunset Gower and Sunset Las Palmas Studios — with 35 sound stages (1.2 million square feet) from owner Hudson Pacific Properties for $1.65 billion. The partners are planning to build more together in what appears to be an overall booming development market for studio sound stages.
Netflix is the portfolio’s largest tenant, leasing over 700,000 square feet, in addition to signing long-term deals for stages and production space, the partners, who have worked together on other projects in Los Angeles, Seattle and Vancouver, said Monday.
Hudson Pacific, a publicly traded, West Coast focused real estate investment trust, said Blackstone Property Partners will acquire 49% of the Sunset portfolio, which totals 2.2 million square feet including on site or adjacent office space. Hudson Pacific will retain 51% and continue to run day-to-day operations, leasing and development. The deal is expected to close in the third quarter..
