Hudson Pacific Properties and Blackstone secured a 15-month extension on a $1.1B CMBS loan backed by the Hollywood Media Portfolio, a 2.2M SF collection of studio lots and office properties partially leased to Netflix. The loan was transferred to special servicing in August, just days before its Aug. 9 maturity date, and the new maturity date is now Nov. 9, 2027. The extension matters because it removes an immediate default risk for a high-profile Los Angeles studio and office portfolio at a time when studio real estate is under severe pressure from reduced Hollywood and streaming production.
The portfolio is 51% owned by HPP and 49% by Blackstone, with HPP responsible for roughly $566M of the loan. Under the extension, the interest rate was unchanged and no principal paydown was required. HPP did agree to fund a $20M leasing reserve, and excess cash flow from the portfolio will be banked in that reserve to fund capital needs at the properties. The REIT also agreed to enter into a derivative to swap SOFR at 3.5% at the new maturity date. The portfolio includes three studio lots—Sunset Gower Studios, Sunset Las Palmas Studios and Sunset Bronson Studios—plus office properties 6040 Sunset, Harlow and the Netflix-leased Icon, Cue and Epic buildings.
The evidence comes from a single Bisnow National report, which cites HPP statements and earnings call commentary. HPP CFO Harout Diramerian said the extension "underscores our ability to execute a positive outcome for shareholders" and provides "additional time and flexibility to advance our leasing strategy across this portfolio." HPP President Mark Lammas said the three studios are 95.5% leased. However, the broader financial picture is weaker: HPP reported a $105M loss in Q2, following a $53M loss in Q1 and a nine-figure loss in the final quarter of 2025, even as it signed 1.3M SF of office leases during the second quarter.
The extension reflects a wider distress cycle in studio real estate. Netflix struck a deal in June to buy the 1.1M SF Radford Studio Center in Hollywood for $400M from its lenders, a steep decline from the campus's $1.8B appraisal in 2021. Hackman Capital Partners CEO Michael Hackman, whose firm lost Radford to its lenders, said at a Bisnow event in June: "It's been a really tough time for studio owners. It's really been difficult. We've all been going through it." The HPP-Blackstone extension is consistent with that environment, where lenders and special servicers are choosing to grant time rather than force immediate resolutions.
The report leaves several questions open. It does not specify the loan's current interest rate, the exact amount of excess cash flow expected to fund the leasing reserve, or whether the extension includes any future principal paydown requirements. It also does not detail the occupancy or leasing status of the office properties beyond the 95.5% figure for the three studios. The single-source nature of the evidence means the extension terms should be treated as reported by HPP and Bisnow, without independent confirmation from the special servicer or Blackstone. What to watch is whether the additional time leads to meaningful new leasing across the office portion of the portfolio, and whether the $20M reserve proves sufficient if production demand remains weak through 2027.