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 assets, moving 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, was transferred to special servicing shortly before its 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.

Hudson Pacific holds a 51% stake in the three-studio portfolio, with Blackstone owning the remaining 49%. As of early August, the properties were 95.5% leased, with major tenants including ABC and Netflix. This extension provides crucial flexibility for Hudson Pacific as it addresses other operational challenges, including the closure of troubled Quixote production facilities in Pacoima, Panorama City, and West Hollywood, which contributed to a $105 million loss in the second quarter and a $53 million loss in the first quarter. For developers and lenders, this highlights the ongoing efforts to restructure debt on large commercial portfolios amidst market shifts.