Worthe Real Estate Group, Stockbridge Land Big Loan, Close On Warner Bros. Ranch
Worthe Real Estate Group and Stockbridge are officially the new owners of the Warner Bros. Ranch in Burbank after locking down a large loan to close on the purchase.
Worthe and Stockbridge bought the lot at 411 North Hollywood Way from Warner Bros. Entertainment for $175M in a sale that closed Aug. 23, The Real Deal reports.
Athene Annuity and Life Co., which is owned by private equity giant Apollo Global Management, provided a $480M loan for the purchase. Apollo also provided a mezzanine loan on the deal, but that amount wasn't disclosed, per TRD.
The financing will fund not only the purchase but also the redevelopment of the lot. The firms said in 2021 that they planned to add 16 soundstages and more than 300K SF of offices to the property.
As part of this deal, which was first agreed to in 2019, Warner Bros. will become the lone long-term tenant of two Frank Gehry-designed office buildings owned by the developers on the adjacent Burbank Studios site. Those two buildings were completed in May.
