Worthe, Stockbridge Land $475M for Warner Bros HQ
This marks the first single-asset, single-borrower CMBS office loan to close since early 2022.
Worthe Real Estate Group and Stockbridge have secured a $475 million, fixed-rate CMBS loan to finance Second Century, Warner Bros.’ 800,000-square-foot headquarters in Burbank, Calif.
Wells Fargo and Morgan Stanley led the transaction—the first single-asset, single-borrower CMBS office loan to close since early 2022, according to a company statement. Eastdil Secured served as exclusive advisor.
In 2019, the project became subject to a $594.2 million construction loan from Blackstone Group, according to CommercialEdge data. Previous financing also included a $117.8 million loan originated by Starwood Capital in 2018.
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Named for Warner Bros. Studios’ 100-year anniversary, Second Century came online following a land swap agreement exceeding $1 billion, Urbanize LA reported. The deal involved Worthe, Stockbridge and the former parent company of Warner Bros., AT&T.
As a result, the developers gained ownership of four additional properties, including the 30-acre Warner Bros. Ranch. Plans call for a $500 million redevelopment that will add new offices and soundstages, totaling some 925,000 square feet. Warner Bros. will fully occupy the space upon its 2025 delivery.
A three-year development
The developer broke ground on the two-building campus in February 2020, with construction completed last May. Partners on the development included architecture firms Gehry Partners and NBBJ, along with contractor Krismar Construction.
The seven- and nine-story buildings measure 355,000 and 445,000 square feet, respectively, and are LEED certified. Amenities include outdoor terraces and a three-level underground parking.
Second Century is at 100-200 S. California St., in the southernmost section of The Burbank Studios and adjacent to the Warner Bros. main lot. Downtown Los Angeles is 11 miles away.
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