LOS ANGELES-A large broadcast production studio here has been acquired by World Class Capital Group of Austin, TX. The 109,000-square-foot studio is home to Playboy's broadcast activities and other productions helmed by Encompass Digital Media Inc.
The purchase price for the facility was pegged by industry sources at $25 million. Karlin Real Estate Lending, a bridge loan provider, enabled the World Class purchase with $20 million in financing to facilitate the acquisition of 3030 Andrita St., also known as Andrita Studios.
Built in 1925, the former industrial and office complex was converted into a “plug and play,” high-definition media facility in 2002. The facility is 100% occupied by Encompass, which provides broadcasters, cable networks, corporations and government entities with customized solutions for the management and distribution of content. Playboy is a tenant at the facility.
Situated on a four-acre site near San Fernando Rd. and the Glendale (2) Freeway, the property has two non-contiguous parcels totaling 3.9 acres. Playboy spent over $2.2 million on designing, constructing and installing the studio facility. The studio has also been used to film HBO's "Arlis$$" and MTV's "Life & Rhymes," among other productions.
Encompass owns and operates broadcast facilities throughout the United States, Latin America, the United Kingdom and Asia. The company network origination services including advanced transmission and 24/7/365 monitoring with technical support for over 800 channels in HD, SD and 3D, delivering content to satellite and cable providers worldwide via satellite, fiber and IP. The full-service broadcast company formulates strategies to launch legacy and start-up TV networks on a global scale.
Andrita Studios houses an MPAA-audited digital media center; climate-controlled tape vaults; three production stages, edit and audio suites and 63,000 square feet of office space.
Larry Grantham, managing director of real estate lending for Karlin, tells GlobeSt.com that the growth of Encompass, which has eight other locations around the world, was a key to investing, even while acknowledging that film and television production facilities have been migrating away from their traditional Southern California base for some time.
“We feel this location is one of the two key locations for Encompass,” Grantham says. “We feel that we're getting paid fairly for the risk, given the term that's remaining on the lease, and we're cautiously optimistic that they will sign a lease extension. We feel there's still demand for the built-out production and post-production satellite uplinking space."
As previously reported by GlobeSt.com, the next generation of digital technology companies will drive production growth in the region, says Avison Young's Christopher Cooper.
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