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

A joint venture between Hudson Pacific Properties and Blackstone has secured a 15-month extension on a significant $1.1 billion loan, pushing its maturity to November 2027. This loan is backed by a 2.2 million square foot portfolio of three iconic Hollywood studio properties: Sunset Gower Studios, Sunset Las Palmas Studios, and Sunset Bronson Studios, along with their adjacent office buildings. The properties, which were 95.5% leased as of early August with tenants like ABC and Netflix, had been transferred to special servicing shortly before their original August 9 deadline.

The extension was granted without a principal paydown and at the original interest rate, though the borrowers committed to funding a $20 million leasing reserve from excess cash flow. This reprieve offers crucial breathing room for Hudson Pacific, which holds a 51% stake in the portfolio, as it navigates the unwinding of other troubled production assets, including the Quixote facilities in Pacoima, Panorama City, and West Hollywood. The studio properties themselves received approval in 2020 for a substantial expansion, adding nearly 500,000 square feet of creative office and production support space. For developers and lenders, this highlights how well-performing, strategically located assets can secure debt restructuring even when a sponsor faces broader portfolio challenges, emphasizing the importance of asset-level fundamentals.