In a significant development, Los Angeles-based Worthe Real Estate Group, in partnership with San Francisco-based investment firm Stockbridge, has finalized the acquisition of the iconic Warner Bros. Ranch in Burbank, Calif. The partnership purchased the 30-acre lot at 411 North Hollywood Way for $175 million, breaking down to approximately $5.8 million per acre. The deal was sealed on August 23, according to documents filed with Los Angeles County.
This major acquisition was financed with a loan of $480 million provided by Athene Annuity and Life Company, a subsidiary of the private equity firm Apollo Global Management, according to a recent report in The Real Deal.
Jeff Worthe, the president at Worthe Real Estate Group, confirmed through an email that the financing will be used to acquire and support the redevelopment of the historic property. Additionally, according to the report, mezzanine financing was provided through another Apollo affiliate based in the Cayman Islands.
This acquisition holds notable significance for the entertainment industry. The Warner Bros. Ranch has been a prominent film and TV set, gracing audiences with several iconic scenes from major films and television series over the decades.
But change is on the horizon. As part of their vision for the lot’s future, Worthe and Stockbridge disclosed plans in 2021 to reinvigorate the property. The firms intend to construct 16 state-of-the-art soundstages and a 320,000-square-foot office complex. This move aligns with the burgeoning demand for quality production facilities as content consumption grows globally.
In a synergistic move, Warner Bros. Entertainment is not severing all ties with the famed lot. Under the terms of the current deal, Warner Bros. will lease back the newly constructed office complex. Furthermore, it will maintain occupancy at the expansive 800,000-square-foot Burbank Studios complex located at 3000 West Alameda Avenue.
