After a $1.1B loan backing a complex of studio and office space was moved to special servicing last month, Hudson Pacific Properties and Blackstone managed to secure more time to pay off the balance.
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The Los Angeles-based REIT now has until Nov. 9, 2027, before a $1.1B CMBS loan backed by Hollywood studios partially leased to Netflix matures.
"This extension underscores our ability to execute a positive outcome for shareholders,” HPP Chief Financial Officer Harout Diramerian said in a statement. “It provides us with additional time and flexibility to advance our leasing strategy across this portfolio, while proactively managing our broader debt maturity schedule.”
The Hollywood Media Portfolio, in which HPP has a 51% stake, spans 2.2M SF and includes three studio lots plus office properties 6040 Sunset, Harlow and Netflix-leased Icon, Cue and Epic. Blackstone owns the remaining 49% and shares responsibility for the Hollywood portfolio loan.
The loan was transferred to special servicing last month, a few days before its Aug. 9 maturity date.
HPP, which is responsible for paying around $566M of the loan, said at the time that it had worked out an extension with the special servicer as well as a 30-day extension to allow for time to finalize the deal.
Under the 15-month extension, the interest rate was unchanged, and HPP and Blackstone weren't required to make a principal paydown as part of the agreement, the REIT said in a press release.
However, it did agree to fund a $20M leasing reserve to secure the deal. While the loan is in place, excess cash flow from the portfolio will be banked in the reserve to fund capital needs at the properties.
The REIT also agreed to enter into a derivative to swap SOFR at 3.5% at its new maturity date.
The three studios — Sunset Gower Studios, Sunset Las Palmas Studios and Sunset Bronson Studios — are 95.5% leased, HPP President Mark Lammas said during the firm’s most recent earnings call.
But HPP’s broader portfolio continues to record losses even as it inked deals for 1.3M SF of office leases during the second quarter. The REIT reported a $105M loss during the period, following a $53M loss during Q1 and a nine-figure loss during the final three months of 2025.
Studio real estate overall has been challenged amid a slowdown in production from Hollywood and streaming companies. Netflix struck a deal in June to buy the 1.1M SF Radford Studio Center in Hollywood for $400M from its group of lenders, a massive loss after the campus was appraised at a $1.8B value in 2021.
"It's been a really tough time for studio owners," Hackman Capital Partners CEO Michael Hackman, whose firm lost Radford to its lenders, said at a Bisnow event in June. "It's really been difficult. We've all been going through it."
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