Responding to the surging demand for state-of-the-art studio space, Hudson Pacific Properties Inc. and Blackstone are teaming up to develop the first large-scale, purpose-built studio in the Los Angeles area in more than 20 years.
Sunset Glenoaks Studios will cost between $170 million and $190 million and feature 240,000 square feet on more than 10 acres in Sun Valley, Calif.
Located at 11070 W. Peoria St., the studio will be a 20-minute drive from Hollywood and 10 minutes from Burbank, Calif., where Disney, NBC Universal and Warner Brothers are headquartered. Sunset Glenoaks will also be near other entertainment companies like Netflix, Nickelodeon Animation, Legendary Entertainment and Sega Games and be accessible to the many television and film crew professionals who live in the San Fernando Valley.
The asset is slated to be completed in the third quarter of 2023 and will include seven film- and TV-ready sound stages ranging from 15,000 to 21,000 square feet, all with 35-foot and 40-foot clear heights. The property will also have nearly 120,000 square feet of support space as well as offices, a large mill where sets can be constructed, about 450 parking stalls and generous truck loading.
The modern studios will have the technology infrastructure to shoot on a virtual stage, as well as a power grid designed for LED lighting and high-speed fiber connectivity with scalable production-level internet. The property will be targeting LEED certification and be focused on sustainability, as well as health and wellness in construction and operations. Sunset Glenoaks will have EV charging stations, bike parking, showers and lockers. It will also be 100 percent carbon neutral with advanced waste, water and energy use reduction programs.
The facility will be part of the Sunset Studios brand, which includes three studios in Hollywood owned by Hudson Pacific and funds managed by Blackstone. Funds affiliated with Blackstone Property Partners acquired a 49 percent interest in the portfolio of studios—Sunset Gower Studios, Sunset Bronson Studios and Sunset Las Palmas Studios—and nearby Class A office properties from Hudson Pacific last year. Hudson Pacific retained a 51 percent ownership stake and remained responsible for operations, leasing and development of the portfolio, consisting of 2.2 million square feet valued at $1.7 billion.
Once Sunset Glenoaks is complete, the joint venture will own and operate 42 stages or 3.5 million square feet, including development rights, of Los Angeles-area studio facilities. The partnership is also actively pursuing further expansion opportunities in Los Angeles, New York, London and Vancouver.
Victor Coleman, chairman & CEO of Hudson Pacific, said in a prepared statement Sunset Glenoaks is a perfect example of the company’s long-term strategy with Blackstone to buy and transform existing facilities and to build new, state-of-the-art studios in Los Angeles and other high-priority production markets. Coleman noted there is not enough current supply for top-notch, fully integrated sound stages and support space to meet demand from leading content creators. The joint venture will continue to leverage its development and studio operations expertise to further expand Sunset Studios’ facilities in Los Angeles, he said.
Jacob Werner, Blackstone Real Estate senior managing director, said in prepared remarks the investment reflects the firm’s high conviction in content creation and its long-term commitment to the Los Angeles market. He said the strong partnership has enabled the two companies to expand their joint venture and uncover and capitalize on unique opportunities in the studio development and operation space.
Hudson Pacific and Blackstone have collaborated outside Southern California as well. In March 2019, the two companies formed a joint venture to purchase the 1.5 million-square-foot Bentall Centre, an office and retail complex in Vancouver.