HPP, Blackstone Extend $1.1B Hollywood Studio Loan to 2027
Hudson Pacific Properties and Blackstone secured a 15-month extension on a $1.1 billion CMBS loan tied to a 2.2 million-square-foot Hollywood studio and
Hudson Pacific Properties and Blackstone have extended the maturity of a $1.1 billion loan tied to a major Hollywood studio portfolio. The commercial mortgage-backed securities loan, which was moved to special servicing last month, will now come due on November 9, 2027.
HPP Chief Financial Officer Harout Diramerian framed the move as a win. "This extension shows our ability to execute a positive outcome for shareholders," he said in a statement. "It provides us with additional time and flexibility to advance our leasing strategy across this portfolio."
Loan Terms and Portfolio Details
The 15-month extension leaves the loan's interest rate unchanged. According to HPP, the real estate investment trust and its partner Blackstone were not required to make a principal paydown as part of the agreement. To secure the deal, however, HPP agreed to fund a $20 million leasing reserve. Excess cash flow from the properties will be directed into this reserve to fund capital needs while the loan remains in place. The REIT also agreed to enter into a derivative to swap the Secured Overnight Financing Rate at 3.5% at the new maturity date.
The loan is backed by the Hollywood Media Portfolio, a 2.2 million-square-foot collection of studio lots and office buildings. HPP holds a 51% stake in the portfolio and is responsible for approximately $566 million of the loan balance. Blackstone owns the remaining 49% and shares responsibility for the debt.
Property Composition and Occupancy
The portfolio includes three core studio lots and several office properties. HPP President Mark Lammas stated during a recent earnings call that the three studios are 95.5% leased. The office buildings include properties known as 6040 Sunset, Harlow, and the Netflix-leased Icon, Cue, and Epic.
| Property Type | Key Examples | Occupancy Note |
|---|---|---|
| Studio Lots | Sunset Gower, Sunset Las Palmas, Sunset Bronson | 95.5% leased, per HPP |
| Office Buildings | 6040 Sunset, Harlow | Part of the portfolio |
| Netflix-Leased Offices | Icon, Cue, Epic | Tenanted by streaming giant |
Broader Challenges in Studio Real Estate
Despite the loan extension and high studio occupancy, HPP's broader financial performance has been difficult. The REIT reported a $105 million loss for the second quarter. This followed a $53 million loss in the first quarter and a nine-figure loss in the final three months of 2025. The company did sign 1.3 million square feet of office leases during Q2.
The studio real estate sector faces significant headwinds. A production slowdown from Hollywood and streaming companies has pressured the market. In a stark example cited by Bisnow, Netflix struck a deal in June to buy the 1.1 million-square-foot Radford Studio Center for $400 million from its lenders. That price represented a massive loss from the campus's $1.8 billion appraisal in 2021.
Michael Hackman, CEO of Hackman Capital Partners, which lost the Radford property to lenders, summarized the climate at a Bisnow event. "It's been a really tough time for studio owners," he said. "It's really been difficult. We've all been going through it." The loan transfer to special servicing occurred just days before the original August 9 maturity date. HPP had previously stated it was working on an extension with the special servicer.
