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Blackstone buys stake in Southern California office portfolio for $1.7b
Transactions - SEPTEMBER 25, 2017

Blackstone buys stake in Southern California office portfolio for $1.7b

by Jody Barhanovich

New York–based Blackstone has bought a majority stake in an office portfolio in Burbank’s Media District for $1.7 billion, according to multiple news sources.

The six-office building portfolio has a total of more than 3.3 million square feet of class A space that hosts many top media and entertainment companies, such as Walt Disney Co., Sony, Fox, DreamWorks and Yahoo.

The properties include the Tower at 3900 W. Alameda Ave.; Central Park at 3500 W. Olive Ave.; Pinnacle I and II at 3400 and 3300 W. Olive Ave., respectively; the Pointe at 2900 Alameda Ave.; and Media Studios at 2255 N. Ontario St.

The properties were developed or purchased over several years by Santa Monica developers Jeff Worthe and M. David Paul.

Worthe is keeping a 20 percent ownership stake in the roughly 90 percent–leased properties, with Blackstone buying out the co-owners at undisclosed prices. Four of the properties traded hands last week, while the other two are expected to close within three weeks. Worthe will continue to manage the properties.

Blackstone and Worthe now control about 70 percent of the office supply in the Burbank Media District, which will make them more capable of controlling rents in the area. Blackstone and Worthe also own land parcels entitled for 900,000 square feet of office development, some of which include Central Park, Disney Channel Building and Pinnacle.

 

 

 

 

 

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