East End Studios Lands $130M for LA Campus
East End Studios has secured a $130 million financing package for the development of an approximately 250,000-square-foot studio campus in Los Angeles’ Arts District, Commercial Observer reported. Dubbed East End Studios – Mission Campus, the $230 million project is already underway and scheduled for completion by the end of 2025.
Centennial Bank originated a senior loan, while Monroe Capital provided a mezzanine note. The remaining funding will be provided by East End’s capital partner. A CBRE team led by Senior Vice President Greg Grant advised the borrower and arranged the non-recourse financing.
READ ALSO: Why CRE Investors Are Zooming In on Studios
The project is the adaptive reuse of a two-story concrete and steel cold storage warehouse building totaling some 140,000 square feet of floor area. East End acquired the property in 2021 for $43 million from Hager Pacific Properties, according to CommercialEdge information.
Designed to comply with CALGreen standards, Mission Campus will consist of five sound stages totaling 100,000 square feet with 42-foot clear heights, loading docks, parking and outdoor spaces. Additionally, the campus will feature 150,000 square feet of office space, post-production workspaces, commissary and mill areas, as well as talent suites.
The development is rising on 5 acres at 2233-2251 Jesse St. in the Boyle Heights area, 2 miles from downtown Los Angeles. The site is 1 mile away from East End’s ADLA Campus, an $800 million studio project slated for completion in 2026.
Production studios still poised for future growth
The commercial real estate sector is experiencing an increased interest for film and sound production studios, driven largely by an unprecedented demand for content. Although the industry faces potential obstacles like anticipated declines in production output due to strikes and budget constraints, the need for studio facilities remains robust.
Last year, East End Studios secured $193 million in financing for the construction of Sunnyside Campus, a 275,000-square-foot media and content production facility in New York City. That project will occupy an entire city block between Queens Boulevard and the Long Island Expressway and is scheduled to come online in the first quarter of next year.
More recently, Togus Urban Renewal LLC obtained a Film-Lease Partner Facility designation from The New Jersey Economic Development Authority for a 1.5 million-square-foot campus in Bayonne, N.J. The $1 billion project will feature 23 smart sound stages and 350,000 square feet of production support space, office spaces, mills, lighting and grip facilities.
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