Hudson Pacific and Blackstone Secure 15-Month Extension for $1.1 Billion Hollywood Studio Loan

Hudson Pacific Properties and Blackstone have secured a 15-month extension on a $1.1 billion loan for their 2.2 million square feet of Hollywood studio properties, pushing the maturity date to November 2027. The loan, which covers Sunset Gower Studios, Sunset Las Palmas Studios, and Sunset Bronson Studios, along with adjacent office buildings, had been transferred to special servicing prior to its August 9 deadline. The extension was granted without a principal paydown and maintained the original interest rate, though the borrowers committed to funding a $20 million leasing reserve from excess cash flow.

Hudson Pacific owns 51% of the three-studio portfolio, with Blackstone holding the remaining 49%. As of early August, the properties were 95.5% leased, boasting tenants such as ABC and Netflix. This reprieve offers Hudson Pacific crucial breathing room as it navigates other portfolio challenges, including the closure of Quixote facilities in Pacoima, Panorama City, and West Hollywood, which have experienced sustained occupancy declines. For developers and lenders, this highlights the strategic maneuvers and ongoing financial adjustments within the high-value commercial real estate debt market.