Hudson Pacific Properties Acquires Soundstage Company For $360M
The soundstage and production company that helped create Avengers: Infinity War has been acquired by Hudson Pacific Properties, which is assembling a superpowered roster of studio facilities.
The Los Angeles-based REIT's $360M acquisition of Quixote Studios, announced Thursday, will give it 530K SF in lease rights, including 26 soundstages that make up 371K SF. The company will have 3.2M SF of facilities across Los Angeles, New Orleans, Louisiana, and North London, according to a presentation on the merger.
HPP's Sunset Studios portfolio includes over 60 soundstages in Los Angeles and the UK, Commercial Observer reported. The company also has over 1,400 cast trailers, trucks and other specialized vehicles in Los Angeles, Atlanta and Albuquerque, New Mexico.
Quixote was founded in 1995 and has 325 employees in Los Angeles, New York, Atlanta and New Orleans. Some of the company's prominent clients include ABC, Disney, HBO, Sony and Paramount. The company has also helped create shows and movies like Curb Your Enthusiasm and Avengers: Infinity War.
"Our acquisition of Quixote Studios represents further execution of our strategy to enhance our core studio business for customers with a full-service offering of sound stages, both in terms of size and location, and production services in key global markets," Jeff Stotland, executive vice president of global studios and services for Hudson Pacific, said in a statement.
This merger is a chance for Hudson Pacific to remain competitive in an industry that is in dire need of more studio space to "feed a content boom," according to the Los Angeles Times.
Hudson Pacific’s Sunset Studios portfolio includes three Hollywood studios – Sunset Gower Studios, Sunset Bronson Studios and Sunset Las Palmas Studios – and is jointly owned with Blackstone. Those three studios have a combined total of 35 soundstages and 1.2M SF.
Hudson Pacific and Blackstone are working on another project, Sunset Glenoaks Studios in Burbank, that has already begun construction. The partnership secured a $94M loan for the project, which is expected to be completed by the end of 2023. The studio is planned to be 240K SF across 10 acres and will include seven soundstages, according to Deadline.