In a notable move within Los Angeles’ studio real estate landscape, CIM Group has completed a $229.8 million recapitalization of its iconic 11-acre production campus, The Lot at Formosa. The transaction—executed through a Delaware entity controlled by CIM—represents an internal restructuring of the historic West Hollywood property.

The June 25 deal, signed by CIM CFO David Thompson, positions “The Lot in West Hollywood LLC” as the new owner of record. While the transaction does not involve a third-party buyer, it does come with a new $155 million loan from Blue Sky Servicing, a lender registered at CIM’s Wilshire Boulevard address. The proceeds were used to pay off a $150 million loan secured just over a year ago from global investment firm AllianceBernstein. CIM confirmed the recapitalization, which was approved by an independent committee.

The Lot at Formosa remains a vital piece of West Hollywood’s production infrastructure, spanning an entire city block and featuring seven soundstages alongside modern office buildings and two parking structures. CIM has invested significantly in the property since acquiring it in 2007, most recently expanding the campus with three new office buildings.

HBO has been a long-term tenant, leasing more than 161,000 square feet of production space for titles such as Euphoria, Big Little Lies, and True Blood. In January, Miramax signed on as well, taking 16,000 square feet for its new headquarters.

What’s notable about this recapitalization is the valuation: at $229.8 million, the new internal basis for The Lot sits below several recent comps in the Los Angeles studio market, which have seen significant run-ups during the streaming-driven real estate boom. At a time when many traded studio assets carry heavy debt loads and aggressive pro forma assumptions, The Lot’s restructured balance sheet, simplified ownership model, and leaner cost structure may give it greater operational flexibility—allowing it to better serve clients without the layers of corporate complexity and cost-cutting constraints facing other studio operators.