Sunset Gower changing hands

Historic Sunset Gower Studios, Hollywood's largest independent studio and home to all kinds of classics over the years ("It Happened One Night," "Mr. Smith Goes to Washington," etc.) is being sold for around $200 million - just three years after the seller had bought it for $110 million. It's the second big studio deal in the last couple of months - private equity giant Carlyle Group bought Manhattan Beach Studios for $150 million - and the L.A. Business Journal, which is just out with the Sunset Gower deal, reports that Culver Studios in Culver City is also on the market. Buying the Sunset Gower property is Hudson Capital, a commercial real estate firm headed by Victor Coleman, who was the number two guy over at Arden Realty before GE took it over. An unnamed capital partner is also involved. The studio remains active, but it was marketed as a "redevelopment opportunity," and according to the offering memorandum there are entitlements for at least 381,000 square feet. The seller is Global Innovation Partners LLC.

While real estate experts speculate on Hudson’s plans, both the Community Redevelopment Agency of Los Angeles and the office of Los Angeles City Council President Eric Garcetti say they are not interested in residential development, and instead are hoping for “intensified studio use.” “We are worried that people might be overpaying with the expectation that they might be able to develop residential,” said John Perfitt, senior real estate development agent for the CRA. “We are very bullish on the opportunities for creating more commercial office. We would not be in support of residential. We are very concerned about protecting commercial land.”