Hudson Pacific Properties and its joint venture partner have extended the maturity of a $1.1 billion commercial mortgage-backed securities loan secured by the Hollywood Media Portfolio. The agreement pushes repayment to Nov. 9, 2027, keeps the interest rate unchanged and requires no principal paydown at closing, giving the owners more time to execute leasing and portfolio plans.
Key takeaways
- The $1.1 billion CMBS loan now matures on Nov. 9, 2027.
- The extension does not change the stated interest rate.
- No principal repayment was required when the extension closed.
- Hudson Pacific owns 51% of the portfolio’s joint venture and manages its operations.
Loan extension provides additional flexibility
The maturity extension gives Hudson Pacific and its partner additional time before the loan comes due. The company said the arrangement supports its efforts to manage the portfolio’s leasing strategy while addressing its broader debt maturity schedule.
Hudson Pacific Chief Financial Officer Harout Diramerian described the agreement as a positive outcome for shareholders, emphasizing the added flexibility it provides. Because no principal paydown was required at closing, the transaction avoids an immediate reduction in the loan balance.
A major Hollywood real estate portfolio
The Hollywood Media Portfolio spans approximately 2.2 million square feet and combines production studios with Class A office properties. Its assets include three studio facilities:
- Sunset Gower Studios
- Sunset Las Palmas Studios
- Sunset Bronson Studios
The portfolio also contains five on-lot or adjacent office properties: ICON, EPIC, Harlow, 6040 Sunset and CUE. Together, the properties form a concentrated media and entertainment real estate platform in Hollywood.
Development potential remains part of the strategy
In addition to its existing buildings, the portfolio includes development rights for approximately 1.1 million square feet of additional office and production space. Those rights give the joint venture potential to expand the campus over time, subject to market conditions, financing, leasing demand and development decisions.
The extension allows the owners to continue evaluating that potential while focusing on leasing activity across the existing portfolio. It also offers more time to align development and financing decisions with the company’s broader capital-planning objectives.
Hudson Pacific’s role in the joint venture
Hudson Pacific holds a 51% interest in the joint venture that owns the portfolio. The company is responsible for day-to-day operations, leasing and development, giving it direct control over the assets’ management and future positioning.
The loan extension represents a notable financing milestone for the company’s flagship Hollywood holdings. With the maturity date moved to late 2027, Hudson Pacific can continue managing the properties and pursuing its leasing strategy without an immediate principal repayment or change to the stated interest rate.