Worthe Real Estate Group, QuadReal Property Group, and Stockbridge Capital Group have paid $375-million to acquire The Burbank Studios from Warner Bros. Discovery, the companies announced this week.
Formerly home to NBC Studios and the Tonight Show, the 27-acre property at 3000 W. Alameda Avenue, has since become the local base of operation for Warner Bros., which occupies a pair of Frank Gehry-designed office buildings at the southern edge of the property. The Burbank Studios also has eight soundstages and other production facilities.
Warner Bros. provided seller financing for the deal, and will continue to be the primary tenant through a sale-leaseback. That will allow the buyers to move forward with the redevelopment of other parts of the property with more soundstages and production space. The first two phases of that work will include five new soundstages, ranging from 18,000 to 20,000 square feet in size.
The Los Angeles Times reports that the new soundstages will be built at a cost of approximately $100 million. The property is also approved for the addition of up to 400,000 square feet of offices, which could be built at a later date if market conditions improve.
The Burbank Studios lot has traded hands several times in the past two decades through a convoluted series of transactions between Worth, Stockbridge, and Warner Bros. As part of that deal, Warner Bros. also sold the historic Ranch Lot at 3701 W. Oak Street to Worthe and Stockbridge, and will lease back 926,000 square feet of new office space and soundstages which are now being built on the property.
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- The Burbank Studios (Urbanize LA)