Netflix is reportedly a potential buyer for the Radford Studios lot in Studio City, as shared by a source familiar with the negotiations.
The streaming giant’s interest in the lot, which entered foreclosure earlier this year, was initially reported on X by Michael Trujillo, a political campaign consultant, on Sunday. Bloomberg confirmed the report on Tuesday, referencing three individuals familiar with the ongoing discussions.
Although the transaction has not been finalized, Netflix is considered a strong candidate to acquire the property.
Hackman Capital Partners purchased the facility for $1.85 billion from ViacomCBS in 2021. Since then, occupancy rates have plummeted significantly, and rising interest rates led the company to default on a $1.1 billion note, ultimately transferring the lot to Goldman Sachs, its main lender.
Trujillo mentioned a rumored sale price of about $400 million, based on information from brokers and City Hall.
Hackman continues to manage the site while Goldman seeks a new buyer. Both companies, along with Netflix, declined to comment.
The 55-acre property, originally constructed in 1928, is in need of renovation. Hackman had announced a $1 billion investment plan for the site in 2023, which is currently on hold.
Netflix has pledged to develop a $1 billion studio at Fort Monmouth in New Jersey, a former Army base. The company will benefit from a 40% state subsidy for productions at the studio and has been approved for up to $397 million in tax credits for redeveloping the 292-acre area.
Netflix also has an arrangement with New Mexico, where it acquired ABQ Studios in 2018 and made extensive investments to expand. The state provides an uncapped tax incentive of 25%-35% for âproduction partnersâ like Netflix that commit to long-term infrastructure development.
Hackman, recognized as the world’s largest independent studio owner, also owns studios such as Culver Studios, Television City, and others located in L.A., New York, the U.K., Vancouver, and New Orleans.
