Private equity giant The Blackstone Group Inc. is partnering with The Worthe Real Estate Group Inc. to develop a 500,000-square-foot office building near the Burbank and Warner Bros. Entertainment Inc. studio complexes in California, The Wall Street Journal reported.
The planned tower, which is aimed at the TV and film industries, reportedly marks one of the largest office projects to move forward in the U.S. in 2020. The project comes amid a rising demand for studio and office space, driven by the increased consumption of streaming content and the subsequent demand for content production, as a result of people staying home during the pandemic, the publication wrote.
The building is expected to break ground in 2022 on a site next to an existing 480,000-square-foot, 100%-leased tower.
A venture formed between Blackstone and Worthe Real Estate in 2017 made the decision to proceed with the tower at a recent meeting as production casts and crews are returning to studio sets in California to film and edit shows, said Jeff Worthe, president of Worthe Real Estate, according to the publication.
The venture owns 13 buildings and five development parcels, which were bought for a combined $1.7 billion, according to the Journal.