BMK Capital Secures 3 Leases With Entertainment Companies
The Backlot Burbank industrial park in Burbank, Calif., is now fully occupied.
As the entertainment industry offers some signs of recovery, BKM Capital has secured three leases with production studios for its Backlot Burbank industrial park in Burbank, Calif.
Dhar Mann Studios signed two leases at Backlot Burbank while AMGI Animation Studios will take up one building at the 16-building industrial property. Colliers’ David Harding, Greg Geraci, Matt Dierckman and Billy Walk represented the landlord in the leases.
AMGI, a full-service animation studio, signed a lease for a 18,392-square-foot facility, while Dhar Mann, a content creation company, will take both a 25,490-square-foot and a 27,226-square-foot property. Geraci, executive vice president at Colliers, told Commercial Property Executive that the three leases were between four and eight years in duration.
With the new tenants, the 306,224-square-foot Backlot Burbank is now fully occupied, according to Geraci. The creative industrial park’s other tenants include Uber, Volt Lites, Luka Grip & Lighting and LiteGear.
Built between 1964 and 1967, the property contains open loft areas, concrete polished floors and higher drop ceilings in a variety of building sizes. BKM Capital acquired the property for $84.8 million from a joint venture between Shubin Nadal Associates and Penwood Real Estate Investment LLC in August 2018.
Pent-Up Demand
The entertainment industry is rebounding following the COVID-19 lockdowns, and many TV, movie and other production companies are expanding again. Gerasi told CPE that Backlot Burbank is a natural landing spot for these entertainment companies because of its proximity to major studios and lack of gross receipts tax.
“COVID had a pivotal role in creating this pent-up demand because the shutdown of movie and TV productions created a holding pattern across the entertainment industry,” Geraci said. “Now that productions have resumed, the ancillary entertainment companies are getting busier and they’re more receptive to leasing more space and signing a long-term lease.”
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