Worthe Real Estate and Stockbridge Secure $475 Million Financing for Second Century Development at Burbank Studios

BURBANK, Calif. and SAN FRANCISCO, March 21, 2024 /PRNewswire/ -- Worthe Real Estate Group ("Worthe"), in collaboration with Stockbridge, today announced the close of a $475 million fixed-rate securitized mortgage to finance Second Century, the recently completed 800,000-square-foot office project leased to Warner Bros. in the Burbank Media District. The loan was securitized in a single asset, single borrower (SASB) CMBS transaction, led by Wells Fargo and Morgan Stanley.

In May 2023, Worthe and Stockbridge completed the development of Secord Century, which consists of two LEED-certified office buildings located on the southernmost portion of The Burbank Studios Lot, adjacent to the Warner Bros. main lot. Frank Gehry and the team at Gehry Partners designed the buildings, which stand seven and nine stories in height. The buildings were developed by Worthe and built by its construction company Krismar Construction. Second Century is Worthe's thirteenth building in Burbank.

"This successful financing underscores our vision for Second Century and the growing demand in the entertainment industry for sustainable, state-of-the-art and vibrant office space," said Jeff Worthe, President of Worthe Real Estate Group. "We are grateful for the significant interest in the transaction, which as the first SASB CMBS office loan to close since early 2022, is a testament to the quality and transformational potential of these buildings."

"We are pleased to have tremendous interest and support from lenders who share our vision for Second Century and the value it will bring to the Burbank Media District," said Terry Fancher, Co-Head of Stockbridge. "This partnership with Jeff and the Worthe team exemplifies our approach to working with industry-leading peers to bring spaces like Second Century to life."

Second Century was named in celebration of the 100-year anniversary of Warner Bros. in 2023, and the project was designed to foster the continued creativity and success of Warner Bros. and its employees as it embarks on the next century of its history.

Eastdil Secured served as exclusive advisor to Worthe and Stockbridge on the transaction.

About Worthe Real Estate Group

Worthe Real Estate Group and its related entities have been in business since 1967 and are responsible for some of the most noteworthy Real Estate developments in the Los Angeles region. Worthe's commitment to a long-term ownership philosophy has achieved lasting value and created some of the highest quality office environments which support vibrant business communities throughout Los Angeles. The firm's portfolio is currently more than 8 million square feet.

About Stockbridge

Stockbridge is a real estate investment management firm led by seasoned senior professionals averaging 25+ years of real estate industry experience. The firm was founded in 2003 and manages real estate equity investments across the risk spectrum within a variety of investment structures on behalf of U.S. and foreign institutional investors. Stockbridge has approximately $33.1 billion of assets under management (as of September 30, 2023) spanning all major real estate property types, and certain specialty property types with an emphasis on residential and industrial space throughout the United States. The firm has offices in San Francisco, Atlanta, and Chicago.

Contact 

Jeff Worthe
Worthe Real Estate Group
[email protected]
310-393-9653

SOURCE Worthe Real Estate Group; Stockbridge