DreamWorks Animation Scores $15M as Glendale Campus Sells Again
The term of the lease is 20 years with renewal options every five years.
DreamWorks Animation sold its 13-acre Glendale campus again, just five months after selling it to a unit of SunTrust Banks for $185 million in an effort to raise money after a string of money-losing movies.
The studio will remain the property's tenant, paying annual rent of $13.2 million initially, then rising 1.5 percent each year. The term of the lease is 20 years with renewal options every five years.
SunTrust sold the property to Griffin Capital Essential Asset REIT for $215 million. Because of a "sharing agreement" built into the sale to SunTrust in February, DreamWorks Animation will receive half of the profit, which amounts to a $15 million windfall for the previously cash-strapped studio.
DreamWorks Animation, run by CEO Jeffrey Katzenberg, fell on hard times recently after movies like Mr. Pearbody and Sherman, Turbo and The Penguins of Madagascar underperformed.
A restructuring plan that included layoffs and the sale of its campus alleviated Wall Street's fears of a cash-crunch while TV and Netflix deals have led to revenue growth, though the company recorded a $21.5 million loss in its first quarter. The company reports its second-quarter results Aug. 4.