A San Fernando Valley production campus built by Blackstone and Hudson Pacific Properties is on the market, and the lender is the one behind the sale.

Colliers marketing materials for the 240K SF Sunset Glenoaks Studios in Sun Valley refer to the property as a lender-facilitated sale, according to The Real Deal. Instead of an asking price, marketing materials ask for the best offer on the development, which is unoccupied.

Representatives for Blackstone, Hudson Pacific and Colliers did not immediately respond to requests for comment.

Hudson Pacific posted a $136.5M loss in the third quarter of last year, which it largely attributed to the deconsolidation of Sunset Glenoaks Studio. The studio was announced in 2021 but opened in 2024, when a filming slowdown and tightened budgets were in full force. The complex cost roughly $200M to build.

Deconsolidation is a process that relocates the net asset value and affiliated debt of an asset to a different place on a company's balance sheet, resulting in a loss.

The production landscape has been challenged since the pandemic, and the sustained trouble is compounding now. Shoot days in Los Angeles were down 29.7% in the first quarter of this year compared to the five-year average, according to a report from the nonprofit FilmLA.

Other independent studio owners have also struggled as the broader industry does. Hackman Capital Partners defaulted on a $258M loan for a Manhattan Beach studio complex whose lenders have put it up for sale, and a group of lenders led by Deutsche Bank has pushed it to sell the 22-acre Television City complex in Fairfax.

But not all studio properties are created equal. Hudson Pacific's other Sunset-branded studios in Hollywood were 95.5% leased as of the REIT's most recent earnings. A $1B loan that Blackstone and Hudson had on their Hollywood studios and creative offices matured in August, but that same month, Hudson Pacific secured an extension on the loan, which now matures in November 2027.