Bungalow Projects and Bain Capital Real Estate have successfully closed a $304 million construction financing deal. This funding will support the development of Echelon Studios, two advanced film and television production facilities in Brooklyn, New York. The project aims to address the demand for modern production spaces in New York City.
Key Takeaways
- Echelon Studios secured $304 million in construction financing.
- The project includes two facilities in Brooklyn: Bushwick and Red Hook.
- Total production space will be approximately 600,000 square feet across ten soundstages.
- The development incorporates sustainable design, targeting LEED Gold certification.
- An estimated 2,400 jobs will be created during construction and operation.
Significant Funding for New York's Film Industry
The $304 million financing package is a major step for the Echelon Studios development. Bungalow Projects and Bain Capital Real Estate announced the successful closing of this deal. This investment highlights continued confidence in New York City's growing content production sector. The new studios will offer advanced facilities for film and episodic content creation.
The funding includes a $156 million Commercial Property Assessed Clean Energy (C-PACE) financing from CounterpointeSRE. This marks the largest C-PACE transaction in New York State history. It is also the first C-PACE financing for a ground-up development in New York City. An additional $147 million in financing came from an affiliate of Farallon Capital Management.
Project Funding Details
- Total Financing: $304 million
- C-PACE Funding: $156 million (provided by CounterpointeSRE)
- Additional Financing: $147 million (provided by Farallon Capital Management)
Two State-of-the-Art Production Hubs
Echelon Studios will consist of two distinct facilities in Brooklyn: Echelon Studios Bushwick and Echelon Studios Red Hook. Together, these developments will provide approximately 600,000 square feet of production space. This includes ten soundstages designed to meet current industry standards.
Each soundstage will feature 40-foot clear-to-grid heights, ensuring ample vertical space for complex sets and lighting rigs. They will also offer column-free interiors, providing flexible production areas. The studios will incorporate market-leading specifications for electric power, HVAC systems, floor load capacity, and acoustic performance. These features are designed to exceed the demands of modern film and television production.
Echelon Studios Bushwick
Located at 242 Seigel Street, Echelon Studios Bushwick will be the larger of the two sites. It will host six soundstages, offering a total of 102,000 square feet of stage space. The facility also includes 86,000 square feet for production support. Additionally, 76,000 square feet will be dedicated to production offices. A significant 91,000 square feet will be allocated for below-grade parking, accommodating over 230 vehicles.
Echelon Studios Red Hook
The Red Hook location, situated at 176 Dikeman Street, will feature four soundstages. These stages will provide 67,000 square feet of stage space. The Red Hook facility will also include 75,000 square feet for production support. Office space will total 49,000 square feet. Below-grade parking will offer 55,000 square feet, providing over 185 parking spaces.
Commitment to Sustainable Development
Both Echelon Studios facilities are designed with a strong focus on environmental sustainability. They will be all-electric buildings. Over 25% of their energy needs will be supplied by rooftop solar panel systems alone. This commitment to renewable energy contributes to a reduced carbon footprint.
The projects aim for LEED Gold certification. This certification is a globally recognized symbol of sustainability achievement. Furthermore, the studios will meet the requirements of New York City's Ultra-Low Energy Building program. Both developments are also part of the New York State Department of Environmental Conservation’s Brownfield Cleanup Program. They receive support from the New York City Industrial Development Agency.
"We are excited to move forward on developing these state-of-the-art facilities that will cater to all types of episodic and film production and fill New York City’s undersupply of purpose-built stages that are critical to the growth of New York’s content production ecosystem," said Travis Feehan, Co-Founder of Bungalow Projects. "We are grateful for the support we received from our lending partners and look forward to their continued support as we break ground on these cutting-edge and sustainable projects that will expand the realm of opportunities for New York City’s vibrant film and television production industry."
New York State Film Tax Credit Program
Productions filming at Echelon Studios will benefit from the recently expanded New York State Film Tax Credit Program. This program provides $800 million in annual incentives. These incentives are available through 2036. This credit helps attract and retain film and television productions within the state, supporting local economies and job creation.
Economic Impact and Future Outlook
The construction and operation of Echelon Studios are expected to generate significant economic benefits for New York City. The projects are slated for completion in mid-2027. They are projected to create approximately 2,400 jobs across both studio operations and the construction phase. These jobs will support various roles, from skilled trades to technical and creative positions within the film and television industry.
Bungalow Projects and Bain Capital Real Estate have formed a joint venture. This partnership focuses on investing in and developing sustainable production hubs in New York City. This collaboration combines Bungalow Projects' real estate development expertise with Bain Capital Real Estate's investment capabilities. Bungalow Projects specializes in creating production hubs for episodic, film, and digital content. Bain Capital Real Estate invests in sectors driven by long-term demand growth for real estate assets.
Susi Yu, Co-Founder of Bungalow Projects, added, "These cutting-edge and sustainable projects will expand the realm of opportunities for New York City’s vibrant film and television production industry."
The demand for purpose-built soundstages in New York City has been high. These new facilities will help meet that demand, fostering further growth in the local content production ecosystem. The focus on sustainability also aligns with broader environmental goals for urban development.
About the Developers
Bungalow Projects is a New York City-based real estate investment and development firm. It focuses on creating dynamic environments for media, leisure, culture, and recreation. The firm was founded in May 2023 by a leadership team with over 35 years of combined experience and 5 million square feet of development. They aim to build essential infrastructure for creative industries.
Bain Capital Real Estate was established in 2018. It invests in sectors with strong long-term demand for real estate. The team has invested over $10.4 billion of equity since 2010. Their strategy involves applying deep industry expertise to accelerate impact and improve operational performance. Bain Capital manages approximately $185 billion in assets globally.
Echelon is a dedicated content and media real estate brand. It operates in both Los Angeles and New York. Echelon leverages its owners’ experience to create environments that meet the needs of the media industry’s most creative users. The brand emphasizes a hospitality core to foster a high level of creativity among its tenants.
