Hudson Pacific Properties secures $1.1B Hollywood studio loan extension

Hudson Pacific Properties and Blackstone Inc. have secured a 15-month extension on a $1.1 billion loan backing a 2.2 million square foot Hollywood studio portfolio. The new maturity date is set for November 2027, providing relief after the note had moved to special servicing shortly before its original August 9 deadline.

The loan covers Sunset Gower Studios, Sunset Las Palmas Studios, and Sunset Bronson Studios, along with adjacent office buildings. Under the terms of the extension, the borrowers will maintain the original interest rate and are not required to pay down any principal. However, they have agreed to fund a $20 million leasing reserve using excess cash flow from the portfolio.

The studio portfolio is currently 95.5% leased, with major tenants including ABC and Netflix Inc. The extension offers Hudson Pacific time to stabilize its production properties and restructure underperforming assets, such as the Quixote soundstage services brand, which has faced occupancy declines and operating losses. This follows a period of financial volatility for the REIT, which reported a $105 million loss in the second quarter.