The Hollywood Reporter has learned the new studio will be called Studio 3, which will be housed in a three-story apartment building on the ground floor of the former Hollywood Studios building at the intersection of Sunset Boulevard and Vine Street.
It will open in 2018 and have two floors of studio space and a dining room.
It is being financed with $500-million from Universal Pictures, which has invested in Hollywood studios like Universal Studios in the past.
The deal was announced Tuesday night by Universal Pictures Chairman Donna Langley, who is also chairman of Disney’s entertainment and sports division.
“I want to thank the owners of the old Hollywood Studios for their support in the redevelopment of this site,” Langley said in a statement.
“We’re pleased that we will be able to bring the studio back to its former glory.”
Langley announced the deal on the Disney/ABC boardwalk in downtown Los Angeles, which is now under construction, and the studio will open next year.
“The Hollywood Studios is an iconic piece of Los Angeles history, a symbol of our City’s wealth, innovation and talent, and it will serve as a home to our new studio for the next decade,” Langle said in the statement.
Universal will also pay the new studios a “significant” rent.
The studio will house a studio and lobby, which Langley described as “the most exciting place for an entertainment studio to be.”
Langleys announcement came amid rumors that Disney would open a studio on the Hollywood Walk of Fame, a project Langley helped negotiate in 2017.
Langley’s announcement came as a surprise to some members of the community, including the owners and the owners’ children, who have known her for years.
“To be able say, ‘I’m glad that you’re bringing this new studio here, because we didn’t think it would happen’ is a very bittersweet moment for the entire neighborhood,” said Michael Chiesa, the founder and CEO of The Hollywood Walk, which serves as a gathering place for local residents.
“It was not what we expected.
We were expecting something that was bigger than this.
The building that we bought [from MGM] was a massive, overbuilt studio, and we were thinking that maybe it would be a smaller space.”
“I’m very excited to announce that we’re going to have the first studio here in the Hollywood neighborhood,” Chiesat added.
“For the first time, it’s going to be a place that we can call home, a place where we can all come together, and where we will all feel that we have a place to be.
It’s going be a very special place for us.”
The building is owned by the Beverly Hills Conservancy, which works to protect the historic Hollywood neighborhood.
The Conservancy is expected to move into the building in 2018, which the Conservancy hopes will attract more tenants.
The developer said it plans to develop the space into a mixed-use project, which would include apartments, offices, restaurants, and retail.
Langly said that the company will be open to exploring additional uses for the space, including a hotel.
She did not specify which properties in the neighborhood the studio would be housed.
The project is part of the Universal Studios Los Angeles portfolio.
It includes a $300 million renovation of the Hollywood Sign, which opened in 2012.
The new studio is expected not to include any of the sign’s original interior, but Langley did not say which one.
The studios will have an adjacent entrance to the Paramount Theater, which currently houses the Studio 2.
That building, which also is being redeveloped, will not be included in the new project.
The Hollywood sign was renovated in 2017, but is slated to remain closed until at least 2021.
The two-story studio will have about 6,000 square feet of studio and office space, a dining area and lounge, and an outdoor terrace.