UPDATE, May 5, 25, May 5, 2021: The demand for filming and production space in Los Angeles is booming and now Bardas Investment Group and Bain Capital Real Estate want to enter.
The companies plan to develop a production studio and office complex on the site of a former Sears store in Hollywood, according to the Los Angeles Times, which first reported the story. The project will cost $ 450 million, according to Commercial Observer, who provided additional details.
West Hollywood-based Bardas and Bain would build five sound stages and two five-story office buildings totaling 350,000 square feet, along with other production support facilities, the Times reported. Bardas calls the project Echelon Studios.
The development site totals approximately five acres at 5601 Santa Monica Boulevard, an area that is now primarily reserved for parking.
As streaming services have grown, so has the need for more office and production space in the city. Netflix signed the biggest office lease last year to establish its first in-house animation studio in Burbank.
Unlike the declining office market, the production space occupancy rate in the Greater LA area has remained above 90% in recent years, according to FilmLA. Demand is expected to increase as restrictions related to the pandemic are lifted and film projects ramp up.
Hackman Capital Partners is gobbling up studios across Los Angeles with plans to expand many of these properties. And Hudson Pacific Properties now owns approximately 1 million square feet of the 5.2 million square feet of rental sound stages in LA County. Blackstone bought a stake in this portfolio last summer.
Bardas is working on two other projects in Hollywood. In February, the company released plans for a 68,000 square foot office project at the corner of Melrose Avenue and Seward Street. He is also renovating an office building on Fountain Avenue and Cahuenga Boulevard.
[LAT] – Denis lynch
This story has been updated to include the estimated cost of the project and the addition of Bain Capital as a partner in the planned development.