Worthe Real Estate Group and Stockbridge announced they have secured a $475M, fixed-rate securitized mortgage on Second Century, the 800K SF Burbank Media District office project leased to Warner Bros. Construction on the Frank Gehry-designed Second Century wrapped up in May.
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The loan was packaged into a single-asset, single-borrower CMBS.
"This successful financing underscores our vision for Second Century and the growing demand in the entertainment industry for sustainable, state-of-the-art and vibrant office space," Worthe Real Estate Group President Jeff Worthe said in a news release.
The transaction was the first CMBS office loan on one property for one borrower since early 2022, Worthe said, which "is a testament to the quality and transformational potential of these buildings."
Warner Bros. first claimed the space at 100-200 S. California St. next to Warner Bros. Studios in 2019.
Worthe also owns the nearby Warner Bros. Ranch, a 30-acre property it plans to redevelop into an entertainment property with soundstages and offices, The Real Deal reported.
The new mortgage on the Burbank property comes as Los Angeles’ entertainment industry scales back, a trend that predates the strikes that began last spring. The pullback is especially stark compared to the boom seen in 2021 and 2022, the Los Angeles Times has reported.
Eastdil Secured served as the exclusive adviser to Worthe and Stockbridge.
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