Update, June 21, 2023 at 11:19 am: Hudson Pacific Properties is moving ahead with its studio development plans in Hollywood despite the strike by thousands of Hollywood screenwriters.
The Los Angeles-based real estate investment trust has submitted plans to the City of Los Angeles to build a 134,000-square-foot film studio at 6650 West Romaine Street, across the street from the Sunset Las Palmas studio building. planning department.
In 2017, Hudson Pacific purchased the 13-sound, 369,000-square-foot Sunset Las Palmas complex for $200 million. Four years later, the company sold a 49 percent stake in the development and two other Los Angeles studio buildings to Blackstone for about $800 million.
In a statement, a Hudson Pacific spokesperson said the new plans are part of the companies’ “long-term strategy” to “expand and strengthen” their Sunset Studio development in Los Angeles. The companies have disclosed plans to add about 618,000 square feet to Sunset Las Palmas, according to filings with the Securities and Exchange Commission.
In 2021, Hudson Pacific completed a new 130,000-square-foot office building at the development, which is currently leased to post-production company Company 3.
The three-acre site on Romaine Street, currently used as the studio’s car park, will house four soundstages and offices to support the production.
Hudson Pacific Existing Studio affected Caused by the Writers Guild of America strike that began in early May.
“Whether short-lived or long-term, the strike affects the entire studio business,” Chief Executive Victor Coleman said on an earnings call last month, adding that Hudson Pacific would feel less pain , as 70% of its studio area is subject to multiple influences. Annual lease with minimum income guarantee.
It’s still betting on the industry in the long run.
“Even if spending on high-quality original content is reduced in the pursuit of profitability over the next few years, current estimates suggest it will be at least on par with last year after a period of growth following the strike,” Coleman said in the earnings release. “call.
Hudson Pacific reported a first-quarter net loss of $20.4 million, up 3% from a year earlier. The company acknowledged that higher interest expenses and lower office occupancy rates weighed on its results.
To help boost its finances, Hudson Pacific is looking to sell six properties and cut its dividend.
