New York-based Blackstone is acquiring a 49% interest in Hudson Pacific Properties, Inc.’s three Hollywood studios and five on-lot or adjacent Class A office properties, totaling 2.2 million square feet, at a gross portfolio valuation of $1.65 billion. Los Angeles-based Hudson Pacific will retain a 51% ownership stake and remain responsible for day-to-day operations, leasing and development.

Hudson Pacific’s Victor Coleman says, “Our latest joint venture with Blackstone unlocks a portion of the value we’ve created for our shareholders and provides us with significant capital to grow both our studio and office portfolios, including the build-out of additional development rights at our existing studios.”

The transaction includes Sunset Bronson (pictured), Sunset Gower and Sunset Las Palmas Studios, which collectively comprise 35 stages or 1.2 million square feet of production and support space in Hollywood. The portfolio also includes 966,000 square feet of Class A office properties that Hudson Pacific has developed on or adjacent to the lots, specifically 6040 Sunset, ICON, CUE, EPIC and the soon-to-be-completed Harlow.

Opportunities to further expand the joint venture’s portfolio include roughly 1.1 million square feet of untapped development rights at Sunset Gower and Sunset Las Palmas, as well as the pursuit of additional studio acquisitions in Los Angeles and other markets.

The transaction is expected to close in the third quarter of this year.

Eastdil Secured is acting as Hudson Pacific’s lead financial advisor, with BofA Securities also acting as a financial advisor in connection with the transaction. Goldman Sachs & Co. LLC and Barclays are serving as Blackstone’s financial advisors.