Dealmaker: CBRE Secures $130M Construction Financing in Los Angeles

(Illustration courtesy of CBRE)

CBRE Capital Markets’ Debt and Structured Finance secured $130 million in construction financing for the development of a studio campus in the downtown Los Angeles Arts District.

The production facility, named East End Studios – Mission Campus, will sit on five acres within the Thirty Mile Zone at 2233-2251 Jesse Street. The campus will feature five best-in-class sound stages spanning 100,000 square feet via column-free structures and 42-foot clear heights, accessible loading docks and over 150,000 square feet of offices, post-production workspaces, talent suites and mill areas.

The property is adjacent to the Sixth Street Park, Arts, and River Connectivity project–or “PARC”–featuring grass fields, picnic areas, and event spaces.

The project cost will approach $230 million when it delivers in late 2025.

A CBRE Debt and Structured Finance team led by Greg Grant advised the owner, East End Studios, in the construction financing process and facilitated non-recourse financing via two balance sheet lenders.

“While Los Angeles is the most expansive and diverse production market in the world, it remains under-supplied with modern purpose-built stages and fully integrated campuses,” said Jonathon Yormak, Co-Founder and Managing Principal of East End Capital.

Grant noted demand for high-end, purpose-built studio space remains strong in Los Angeles, and is expected to further accelerate as the 2025 production cycle approaches.

According to CBRE research, Los Angeles has the largest amount of film and production space in North America with more than 7.3 million square feet. Studio space in Los Angeles is in demand, with an average annual occupancy of 93.5% between 2016 and 2022, according to local operators.