Hudson Pacific REIT Buys Quixote Studios for $360M
Acquisition of LA-based production company comes with 23 soundstages, 500 cast trailers.
The Hudson Pacific Properties REIT has acquired LA-based Quixote Studios for $360M, the latest mega-deal in the red-hot film production sector.
Quixote rents our 23 soundstages and a fleet of more than 500 cast trailers and trucks for film production operations in Los Angeles, New York, Atlanta and New Orleans.
The company’s clients include ABC, Disney, HBO, Apple Sony, Paramount, NBC Universal and Warner Bros. Quixote was founded in 1995.
“Our acquisition of Quixote Studios represents executive of our strategy to enhance our core studio business with a full-service offering of soundstages, both in terms of size and location, and production services,” said Jeff Stotland, HPP executive vice president, in a statement.
“Quixote strengthens our reach to capture strong secular demand for studio and related assets, including excess demand at our Sunset Studios location, and enables us to achieve immediate economies of scale while further diversifying our client base,” Stotland said.
HPP financed the acquisition with $200M from its credit facility and $160M in deferred purchase pricing accruing interest at 5% with a December 2023 due date.
HPP’s portfolio includes more than 60 soundstages across five lots in Los Angeles and the United Kingdom. The company also has a production service’s division that includes 1,400 cost trailers, trucks and specialized vehicles servicing productions in LA, Atlanta and Albuquerque.
As new and expanding streaming platforms race to create more film and TV content, the demand for more soundstage space has intensified in largest markets in LA and New York, pushing up the value of existing production facilities and fueling a wave of studio trades.
This week, CIM Group disclosed it is looking for a buyer for The Lot on Formosa in West Hollywood, an historic 540K SF production facility where several classic films have been made and HBO currently produces some if its hit TV shows.
The 11-acre Lot on Formosa, located at 1041 North Formosa Ave. in West Hollywood, includes seven soundstages encompassing 87K SF, several historic production office buildings, new office buildings and two large parking garages built by CIM Group.
The studio property dates back to the silent film era in 1918, when it was owned by stars Mary Pickford and Douglas Fairbanks. Famous tenants have included Samuel Goldwyn, Howard Hughes and Frank Sinatra.
Earlier this month, East End Studios filed a development application to build a new film production complex in Downtown LA’s Arts District. Plans for the complex on a 15-acre site at the corner of 6th and Alameda Streets include 16 soundstages, and Class A office space spread across four buildings.