WEST HOLLYWOOD, CA – In a noteworthy maneuver within Los Angeles’s highly competitive studio real estate market, CIM Group has completed a nearly $230 million transaction for its iconic 11-acre studio campus, The Lot at Formosa. The buyer, however, is a familiar entity: a Delaware shell company controlled by CIM itself, in what the firm describes as a “recapitalization”.

The deal, signed by CIM CFO David Thompson on June 25, 2025, saw the recently revamped, 107-year-old complex change hands for $229.8 million. The purchasing entity, named The Lot in West Hollywood, operates under CIM’s direct control.

The internal sale was facilitated by a substantial $155 million loan from Blue Sky Servicing, a lender registered to the same Wilshire Boulevard address as CIM. This financing strategy allowed CIM to pay off a previous $150 million loan tied to the property, which had been provided last May by global investment firm AllianceBernstein. A spokesperson for CIM confirmed the transaction, stating it was approved by an “independent committee” within the company.

The emergence of Blue Sky Servicing as the new lender is notable; the entity also provided a $300 million construction loan for a new studio complex at 5601 West Santa Monica Boulevard last year. A source with knowledge of the deal, speaking anonymously, indicated that CIM’s sidecar deal for The Lot was backed by hard money lender Hankey Capital. Don Hankey, Hankey Capital’s founder, declined to comment when reached.

The Lot at Formosa, situated at 1041 North Formosa Avenue, is a vital West Hollywood production hub, encompassing seven sound stages and extensive offices across a full city block on Santa Monica Boulevard. CIM Group has owned the property since 2007, significantly investing in its expansion with the recent addition of three new office buildings and two parking garages.

The campus serves as a long-term home for major entertainment players. HBO solidified its presence in 2021, signing a deal for 161,108 square feet of production space. The network has utilized The Lot for prestigious hits like “True Blood,” “Big Little Lies,” and “Euphoria”. More recently, Miramax, the production company, also committed to the site, signing a 16,000-square-foot deal in January to establish its new headquarters at The Lot.