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An $87M CMBS loan secured by a Burbank office building owned by Blackstone and Worthe Real Estate Group has moved to special servicing "for imminent monetary default," according to Morningstar data.
The loan moved to special servicing on Dec. 30.
Blackstone is the majority owner of 3300 W. Olive Ave., which is located in the area known as the Burbank Media District. Called Pinnacle II, it spans 225K SF and is part of a six-property portfolio in which Blackstone acquired a majority stake in 2017, according to the Los Angeles Times.
As of September 2025, the property was empty following Warner Bros.' 2022 departure when its lease expired. Warner Bros. was the building's only tenant at the time.
A new, undisclosed tenant is expected to move into a 60K SF space in the property around mid-2026, but that will only account for about one-quarter of the rentable space in the building.
"The loans mature in June 2026, the Borrower is aware of the maturity date and has not yet provided an update regarding timing," according to the servicer notes on the debt.
Representatives for Worthe Group did not respond to a request for comment. Blackstone declined to comment.
The Pinnacle II was not one of the four buildings for which Worthe was able to secure $600M in CMBS financing in October 2024 in partnership with Blackstone.
At the time, Worthe framed the transaction as "the first office portfolio SASB CMBS (single-asset, single-borrower commercial mortgage-backed security loan) closed in the U.S. since early 2022."
Entertainment properties have started to show signs of the region's flagging entertainment industry, which is still clawing its way back from years of challenges, from the pandemic to labor strikes to restructuring of media conglomerates.
Earlier this month, a soundstage in Studio City reverted to its lender, Goldman Sachs, after owner Hackman Capital Partners defaulted on a $1.1B debt on the property.
CORRECTION, JAN. 22, 1:35 P.M. PT: A previous version of this story incorrectly included Pinnacle II as one of the buildings that Worthe financed in October 2024. The story has been updated.
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