The Blackstone Group (NYSE:BX) is teaming up with Hudson Pacific Properties and office giant Vornado Reality Trust on the construction of Manhattan’s first film and television production studio at Pier 94.
The three companies are investing a combined $350 million in the joint venture, which is also a public-private partnership with New York’s Economic Development Corporation. Vornado will hold a 49.9% stake, compared to Hudson Pacific’s 25.6% and Blackstone’s 24.5%.
The 266,000-square-foot campus studio has been named Sunset Pier 94 Studios, and the plan is to begin construction later this year. The facility will include six soundstages, along with offices, writers’ rooms and other support buildings.
Through the private-public partnership, the city promised Vornado $73.5 million to repair and maintain the pier until 2060. Vornado was also granted a 99-year lease with a starting rent of $900,000 per year, which won’t reach its $2.8 million peak until the end of the lease term.
Notably, the writers’ and actors’ strikes are still ongoing. Developers are banking on a resolution before the production studio is up and running.
Blackstone shares gained 3.3% Tuesday afternoon to $104.25.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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