The developer Worthe Real Estate Group and the real estate investment management firm Stockbridge 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 Los Angeles’ Burbank Media District.
The loan was securitized in a single asset, single borrower (SASB) commercial mortgage-backed security (CMBS) transaction led by Wells Fargo and Morgan Stanley.
Worthe and Stockbridge completed the development of Secord Century last May. The property encompasses two LEED-certified office buildings located on the southernmost portion of The Burbank Studios Lot, adjacent to the Warner Bros. main lot. Noted architect Frank Gehry and the team at Gehry Partners designed the buildings, which stand seven and nine stories in height.
“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.”