DreamWorks Animation’s headquarters in Glendale is up for sale, Bisnow has confirmed.
The seven-building campus at 1000 Flower St. measures just under 500K SF and is leased to the animation company, a subsidiary of Comcast Corp., until 2035, according to Green Street, which first reported the news.
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The property’s current owners, South Korea-based Hana Asset Management and Ocean West Capital Partners, headquartered in El Segundo, purchased the property in 2017, paying $290M.
The DreamWorks Animation HQ is expected to sell for as much as $350M, Green Street said, in large part because “demand for such single-tenant properties under long-term leases with investment-grade tenants has soared amid the pandemic,” as has investor interest in studio projects. Ocean West declined a request for comment. Representatives for Hana Asset Management could not be reached.
LA entertainment tenants and the properties they want and need have been the focus of intense investment in the last year or so, as the demand for content surged as a result of the coronavirus pandemic.
In January, Hackman Capital Partners acquired the Sony Pictures Animation campus in Culver City, paying approximately $160M. Hudson Pacific Partners and Blackstone are planning an expansion of the Sunset Gower Studios in Hollywood that would include production support space and soundstages.
But Hollywood and Culver City aren’t the only hubs attracting content makers. Entertainment companies have long clustered in Glendale and neighboring Burbank, which is the longtime home of Disney and Warner Bros., and the area continues to attract these types of tenants and projects geared toward them.
In the fall of 2020, Netflix signed a huge, 171K SF lease for offices in Burbank where it planned to establish an animation studio. Worthe Real Estate Group and Stockbridge Real Estate Fund broke ground early last year on an 800K SF expansion at Burbank Studios designed by architect Frank Gehry.
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