DreamWorks Animation Campus Being Flipped After Two WeeksNadja Brandt and Anousha Sakoui
SunTrust Banks Inc. is planning to make a quick profit on the DreamWorks Animation SKG Inc. headquarters near Los Angeles two weeks after agreeing to buy the property for $185 million.
SunTrust is seeking almost $250 million for the Glendale, California, office campus, according to a person familiar with the marketing who asked not to be identified because the information isn’t public. CBRE Group Inc. is marketing the 497,403-square-foot (46,210-square-meter) property, which is completely leased to DreamWorks Animation for two decades, according to a brochure on the brokerage’s website.
SunTrust agreed to buy the campus through its SunTrust Equity Funding LLC investing arm on Feb. 23, according to a DreamWorks Animation regulatory filing. The studio behind the “Shrek” movies announced the sale-leaseback agreement last month as part of a cost-saving plan after reporting a fourth-quarter loss of $263.2 million.
DreamWorks Animation, led by Chief Executive Officer Jeffrey Katzenberg, said in January it will reduce production to two films a year and eliminate 500 jobs to improve the quality and profitability of its pictures.
Mike McCoy, a spokesman for Atlanta-based SunTrust, declined to comment on the marketing of the property. Matt Lifson, a DreamWorks Animation spokesman, and Doug Marlow, a CBRE executive vice president, also declined to comment.
The campus, leased to DreamWorks Animation through March 2035, has six buildings with office, studio, graphic design and engineering space, as well as food concessions and outdoor plazas, according to the marketing materials.
“The property provides investors with an exceptional high-quality, low-risk core investment opportunity to acquire an iconic headquarters campus at a significant discount to replacement cost,” CBRE said in its brochure.