More movie and streaming space is coming to LA after Swift Real Estate Partners acquired a sound stage and creative office conversion project in the Atwater Village neighborhood just outside of Glendale.
The San Francisco-based company acquired Crop studios of a joint venture led by Captiva Partners. It comprises two 188,662 square foot former industrial buildings on a 7.3 acre site at 4561 Colorado Blvd.. Plans call for the property to be converted into state-of-the-art sound stages and supporting office space.
Sources close to the deal told Commercial Observer it was done for $92.5 million. Both Swift and Captive declined to confirm the sale price.
Captiva Partners, Westbrook Partners and Avalon Investment Company acquired the property for approximately $38 million in July 2020$54.5 million less than it sold 18 months later.
“It is well located in the village of Atwater, close to Hollywood and Burbank, where there is a permanent media infrastructure.” Brian Aberspartner of Captive Partners, told CO. “And an asset where we believe there is good downside protection and plenty of opportunity to create the kind of product that media companies want to buy today.”
Freemantlea media production company known for shows like “American Idol” and “The Price is Right,” has signed a 12 year lease in August 2021 for 43,000 square feet of studio space in the North Building, and these leasehold improvements are currently underway. Swift will reposition the vacant 146,000 square foot south building into a studio with two 21,000 square foot soundstages and a mill, production support and offices. It is expected to be completed by the second half of 2023.
“The continued investment by media and entertainment companies in original programming has resulted in an outsized demand for soundstage space in the LA area,” Swift said. Thomas Noel said in a statement. “Reframe Studios will provide tenants with a premier studio experience in the heart of LA’s media heartland.”
Reframe Studios is adjacent to a Quixote Studios located between the LA River and West San Fernando Boulevard, and approximately 1.5 miles from disneythe campus and Dream works‘ Headquarter.
“We saw Quixote in front of the property, we saw the trends with the growth of media – especially media infrastructure – and we thought this was a really compelling opportunity to buy an asset where we could move it to higher and better use,” Abers said.
As the streaming wars and demand for production have peaked in recent years, sound stages have become increasingly difficult to reach. To meet record demand, experts predicted that developers would tap into the industrial market to convert their own space.
“We are seeing an increased interest from production companies for industrial conversions in what were traditionally secondary neighborhoods”, CBREit is Eric Willette told the CO 15 months ago. “We expect to see more activity in this adaptive reuse space.”
Indeed, the sale of Reframe Studios follows shortly after LA North Studios signed a industrial property lease in Santa Clarita with plans to convert it into a new sound stage space.
Gregory Cornfield can be reached at [email protected].