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The Hollywood Media Portfolio is HPP's core studio-and-office cluster in Hollywood, Los Angeles. In July 2020 funds affiliated with Blackstone Property Partners bought a 49% interest at a gross portfolio valuation of $1.65bn; HPP kept 51% and remains responsible for day-to-day operations, leasing and development, for which it earns property management and other fees [S9].
The collateral has two halves.
Studio lots. Sunset Gower (559,422 sq ft, 12 stages), Sunset Bronson (310,563 sq ft, 9 stages) and Sunset Las Palmas (334,954 sq ft, 11 stages). The lots earn rent for sound stages, production offices and support space, usually on short production-length or series-length licences, plus service revenue from lighting, grip and equipment. Income therefore moves with Los Angeles production volume. Studio NOI fell from $29.2M in FY23A to $22.9M in FY25A, then recovered to $26.6M for the twelve months to June 2026 as the average % leased rose to 83.5% (Exhibits 1, 2 and 8).
Office buildings. ICON (326,792 sq ft), EPIC (301,127 sq ft), CUE (94,386 sq ft), Harlow (129,931 sq ft) and 6040 Sunset (114,958 sq ft). Netflix leases all of ICON, EPIC and CUE, 722,305 sq ft in total, on leases expiring 30 September 2031. The four in-service buildings were 100% occupied at 30 June 2026 with annualized base rent (ABR) of $63.0M, or $73.98 per sq ft. 6040 Sunset had an early lease termination in 2025 and went into repositioning in the first quarter of 2026 [S1].
The loan. The joint venture's original $1,100.0M floating-rate CMBS loan (BXHPP Trust 2021-FILM) was interest-only at SOFR + 1.10%. It reached its fully extended maturity on 9 August 2026, received a 30-day extension to 9 September, and on that date was modified to mature on 9 November 2027. The modification kept the rate and required no paydown. The joint venture reallocated partnership funds to a $20.0M leasing and capital reserve, and all future excess cash flow is swept into it. HPP separately entered into a derivative swapping SOFR at 3.50% through maturity (notional not disclosed) [S7]. HPP holds $30.2M of the certificates itself.
Los Angeles production has not recovered to its pre-strike level. FilmLA counted 4,711 on-location shoot days in the second quarter of 2026, down 12.7% from 5,394 a year earlier [S21]. The 2023 writers' and actors' strikes (May to November 2023) are visible in the studio lots' 2023 quarters (Exhibit 2). Studio demand is also being reshaped by the streamers: in June 2026 Netflix bought the roughly 1.1M sq ft Radford Studio Center for $400.0M, about $364 per sq ft, against a 2021 appraisal of $1.8bn [S13].
Office credit remains under stress. Trepp's CMBS delinquency rate for September 2026 was 8.0% across property types and 12.2% for office [S14]. Lenders are still active, mostly at lower leverage. CBRE's Q2-2026 averages for stabilised, mostly fixed-rate permanent loans were LTV 59.6%, DSCR 1.43x and debt yield 10.2% [S15]. Piccard's summer-2026 quote survey put the median office floating bridge loan at SOFR + 470bp (middle half 436–496bp), 70.0% as-is LTV and a 12.5% stabilised debt yield, on a small sample of eight quotes [S16]. CRED iQ reports 2026 new-issue securitised office loans at a 7.4% cap rate and a 13.8% NCF debt yield [S17].
| FY23A | FY24A | FY25A | LTM Jun-26 | |
|---|---|---|---|---|
| Studio revenue ($000s) | 70403 | 70173 | 66186 | 72685 |
| Studio operating expenses ($000s) | 41160 | 45437 | 43336 | 46094 |
| Studio NOI ($000s) | 29243 | 24736 | 22850 | 26591 |
| Studio NOI margin | 41.5% | 35.3% | 34.5% | 36.6% |
| Studio average % leased (trailing 12 months) | 80.4% | 73.8% | 78.8% | 83.5% |
| Office ABR at period end ($000s, 100% share) | 65008 | 66954 | 62521 | 63046 |
| In-service office sq ft at period end | 967194 | 967194 | 967194 | 852236 |
| Office % occupied at period end | 100.0% | 100.0% | 100.0% | 100.0% |
Your call (approve, approve with conditions, or decline), the size and type of loan, and the two or three reasons that decide it.
What the company does and why its cash flow holds up, then the two or three risks that drive the outcome, ranked, each with evidence from the packet.
Pro forma leverage, coverage and free cash flow with the inputs shown, the trend behind them, and what they mean for the lender.
One plausible stress anchored in the company's history or a named shock, carried through to leverage, coverage, liquidity and covenant headroom.
Whether the terms protect the lender against your downside, pricing against the risk, and the changes you would ask for.
The conditions your approval depends on and what would change your mind.
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