Private real estate developers, Stockbridge and Worthe Real Estate Group, have completed a major studio real estate deal in Burbank, California. According to public records, they purchased the Warner Bros. Ranch for $175 million. This historic media property has been the filming location for numerous films and TV shows over the years, including “Bewitched,” “Gidget,” “WandaVision,” and “National Lampoon’s Christmas Vacation.”
In October 2021, Warner Bros. announced that Worthe planned to develop the ranch, which includes 16 sound stages, a parking structure, a commissary, mill space, and a 320,000-square-foot office complex. The space will be leased back to Warner Bros. Construction on the approximately 926,000-square-foot project is expected to begin next month.
The Warner Bros. Ranch is located about a mile north of Warner Bros. Discovery’s primary lot in Burbank. Columbia Pictures previously owned the ranch until Warner Bros. took ownership in 1990. This deal is part of a larger $1 billion expansion plan announced by Warner Bros. in April 2019. As part of that plan, Worthe and Stockbridge are developing a campus project called Second Century on Warner Bros.’ main Burbank lot.
Warner Bros. Discovery has been consolidating its office footprint in the greater L.A. area, moving employees to properties it owns and leases at its Burbank studios. The company intends to vacate approximately 480,000 square feet of office space owned by Douglas Emmett, a Los Angeles real estate investment trust, over the next two years. Additionally, CNN has announced its move from Hollywood to a Warner Bros. Discovery-owned lot in Burbank.
Despite ongoing strikes by actors and writers, developers continue to pursue soundstage projects in Los Angeles. Last month, New York real estate investment firm East End Capital advanced its plans to build 10 soundstages in Glendale, California. Hudson Pacific Properties, an entertainment real estate investor in Los Angeles, also revealed its intentions to construct approximately 130,000 square feet of entertainment-related space in Hollywood back in June.
According to a filing with the Securities and Exchange Commission, Warner Bros. Discovery estimates that the strikes may result in a profit reduction of $300 million to $500 million this year. However, representatives from Warner Bros. Discovery and Stockbridge did not provide comments upon request.
– Public Records
– Warner Bros.
– Securities and Exchange Commission