Even before the Los Angeles Center Studios’ six new 18,000 square foot sound stages are completed, the owners of the 18.5-acre production complex-Los Angeles-based real estate development firm Smith, Hricik & Munselle, the L.A.-based Hollywood Location Company (HLC) and the San Francisco-headquartered Bristol Group, Inc.-have their sights set on expansion. By the end of the year they plan to begin building six more stages, some of them roughly twice the size of the originals. "This is not a merchant-style proposition," said Stephan Smith, of Smith Hricik & Munselle. "We’re not developing this to then sell it off. We’re in this for the long haul.
"Our vision for this project," he continued, "is that [it] will become one of the largest independent full-service studios around an integrated, multi-dimensional entertainment campus." Because the downtown Los Angeles site (just west of the Harbor Freeway on 5th Street at Unocal Corp.’s former headquarters) was at one time going to be an office park, the partners have already obtained environmental clearances for five million square feet of development, according to Christopher Ursitti, co-owner of HLC. "When we started this [Studios project], we really had an advantage," he said.
But before they could take full advantage, there was the stumbling block of securing a needed third investor. Initially, the reluctance of possible lenders was reportedly due to the fact that a major studio wasn’t attached to the proposed project. Smith and Ursitti said they approached 120 potential lenders before securing the backing of the Bristol Group, a national real estate investment and development firm which reports substantial holdings in Southern California, some of which are tied to the entertainment industry.
Smith and Ursitti declined to discuss specifics regarding the financing of their private venture, known corporately as Downtown Center Studios, LLC. Nor would they give a ballpark sum in terms of initial outlay. Smith said only that "it’s all equity," and Ursitti admitted that it’s "a lot." However, as construction nears completion-the partners anticipate an early- to mid-July opening-Ursitti said he has no concerns about maintaining a high-occupancy rate.
Construction on the complex began last September. Within the campus, which encompasses three-and-a-half city blocks and the enclosed streets, are the six stages as well as 430,000 square feet of office space, with screening and meeting rooms and complete telecommunications capabilities (Ursitti claims to have enough bandwidth to be "a Pacific Bell hub"). The Studios will also boast 72 dressing rooms, a 550-seat theater, a commissary, underground parking for 1,400 cars, and additional surface parking.
The stages themselves are being constructed with grid point loads capable of supporting the weight of a commercial bus. Floating floors will absorb external vibrations and bow-shaped trusses that support the roofs will provide lighting and rigging grids up to 45 feet high. Grip and electric services will be available, and the stages will be capable of delivering 6,250 amps of power. "They are the best example of stages to date," Ursitti said, adding that they will be further enhanced by the complex’s amenities such as craft services kitchens, make-up rooms, dressing rooms and suites in buildings adjacent to the stages. "We really want this to be a destination for people [in the entertainment industry] to gather and make their own," he continued, adding that they will not rent office space to parties not related to the film industry.
The Studios’ location is another advantage according to the partners, as downtown Los Angeles is a shooting hub and yet this is the first and only downtown studio. "The latest figures are 14,000 shoot days a year in downtown L.A.," said Ursitti. Commercial film crews in particular, he added, can potentially "shoot their exteriors in the morning, then come over here and finish their interiors in the afternoon. We’re also very centralized in that we’re about 20 minutes from most other major studios."
In The Beginning
Several uses of the property were proposed before the Studios idea hatched. Originally, Smith, Hricik & Munselle and the Pittsburgh-based Hillman Company purchased the site in ’88. "We were going to build a small city," Smith said, with a hotel and several 45- to 65-story office towers. The recession changed their minds, however, and the developers spent the next few years in pursuit of an arena proposal for the Lakers and the Kings sports teams. During this time, they contacted Hollywood Locations regarding the 40-year-old building at the center of the property. Because the building was only 14 stories tall, "I was planning to implode it," Smith explained. But the location management firm convinced him to spare the building and rent it out for shoots. "We thought they were crazy," Smith said. Since ’96, the building and its underground parking lot have been used in 175 productions, including spots for Honda, Nike, Geico Insurance, Power Bar, Chrysler Neon, Energizer and Bell South, as well as feature films such as The Game and Deep Impact.
When the sports arena proposal fell through, Hillman Company sold its stake in the site. By then, however, Smith and Uritti’s association had grown. Together, they had been looking for property on which to build a studio. "It was kind of like, ‘Eureka!’ " Smith said. "This was the best and highest usage of the land."
New Tenant
Already in place is the Studios’ first tenant, Zoom Cartoons, an animation shop. However, others interested in moving in before construction is completed have been turned down. "We want to be fully operational and provide a really nice work space," Ursitti said. "We only took [Zoom Cartoons] on because they were willing to put up with our dirt." However Ursitti is currently taking calls and expects to be signing contracts by the end of May. He also said they have the option to accelerate the completion of the first two stages if necessary.
Smith and Ursitti are also developing an educational program that will likely include a lecture series and an as yet loosely defined tutorial/mentoring program. "We’re talking to a number of educational institutions," said Smith, including USC, UCLA, Art Center College of Design, Loyola Marymount University and Belmont High School. The essential idea, he added, is to give students interested in film the opportunity "to come in and be on location."
