Second Century, the recently completed 800,000-square-foot office development leased to Warner Bros. in the Burbank Media District, has received $475 million in financing.
Santa Monica-based development and property management company Worthe Real Estate and San Francisco-based investment management firm Stockbridge Capital Group worked together to secure the fixed-rate, commercial mortgage-backed security loan.
Wells Fargo and Morgan Stanley led the transaction, which, according to a company statement, marked the first single-asset, single-borrower CMBS office loan to close since early 2022 in the U.S.
“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,” Jeff Worthe, president of Worthe Real Estate Group, said. “We are grateful for the significant interest in the transaction, which, as the first SASB CMBS (single-asset, single-borrower commercial mortgage-backed security loan) office loan to close since early 2022, is a testament to the quality and transformational potential of these buildings.”
Terry Fancher, co-head of Stockbridge, added: “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. 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.”
Worthe and Stockbridge completed the development of Second Century in May of last year. Designed by Frank Gehry of Gehry Partners LLP, it consists of two LEED-certified office buildings located on the southernmost portion of The Burbank Studios Lot, adjacent to the Warner Bros. main lot. The buildings stand seven and nine stories in height.
The name “Second Century” was coined in celebration of the 100-year anniversary of Warner Bros. in 2023. The development, which now serves as the studio’s headquarters, was designed to foster creativity and success as the company embarks on its next century of history, according to the company.
Warner Bros. began moving in during summer 2022 and was settled in by summer 2023.
New York-based real estate investment banking company Eastdil Secured LLC served as an exclusive advisor to Worthe and Stockbridge on the transaction.
