Blackstone Inc., Vornado Realty Trust and Hudson Pacific Properties Inc. are teaming up to build a studio campus in Manhattan as the firms seek to cater to the film and content production industry.
The three firms are investing roughly $350 million collectively in the project, which will be at Pier 94, according to a statement Tuesday. The public-private partnership includes the city of New York and the New York City Economic Development Corporation.
Construction will start in the third quarter, with financing led by Royal Bank of Canada. The project, expected to be completed by end of 2025, will also include new public restrooms for Hudson River Park, community amenity space and waterfront open space.
The project “will solidify New York as a leading market for content production and studio space,” Vornado President and Chief Financial Officer Michael Franco said in the statement. “Together we’ll raise the bar for one of New York City’s signature industries and breathe new life into a key waterfront site.”
Vornado is contributing its long-term leasehold for Pier 94 to the venture and will own 49.9%. Hudson Pacific will own 25.6% and Blackstone’s institutional Core+ real estate strategy will hold 24.5%.
The site, called Sunset Pier 94 Studios, will be the first New York effort for Hudson Pacific and Blackstone’s studio-investment platform. The two companies formed a partnership in 2020 to develop and run studios under the Sunset Studios brand, which will have 69 existing and planned sound stages including the New York project.
Last year, Hudson Pacific paid about $360 million for Quixote Studios, which furnishes trucks, lighting and other support equipment for entertainment production. Hudson Pacific has been hammered by the Hollywood writers and actors strikes, which halted production and came on top of rising vacancies in its West Coast office portfolio.
